Landlord And Rental Insurance


Rent loss insurance is an insurance against a landlord’s loss of rent. Rent loss insurance protects a landlord when a fire or other casualty damages the property so badly tenants can’t occupy it. With no tenants, a landlord has little chance of making income from rents. In most cases, rent loss insurance covers damages to a landlord’s rental property as well as several months of lost gross rental income.

Gross Rental Income

Mortgage lenders often require rent loss insurance on any rental properties they’ve financed. Rent loss insurance policies normally pay out based on Gross Rental Income (GRI), GRI is the total rent received from a property before deductions for service charges, insurance and operating costs. By paying on GRI, rent loss insurance guarantees a higher and more realistic payout to landlord policy holders.

Rent Guarantee Insurance

Landlords sometimes confuse rent guarantee insurance with rent loss insurance, but, the two address different types of rent loss. Rent guarantee insurance exists to protect a landlord when a tenant doesn’t pay his rent. It also doesn’t protect against loss from fire or other casualty. Insurance companies usually bundle both rent loss and rent guarantee insurance into one comprehensive rent insurance package.

Related Links

  • Buildings And Contents Insurance

  • Landlord And Rental Insurance

  • Unemployment Cover

  • Income Protection Insurance

  • Business Protection Insurance

  • Family Income Benefit

  • Critical Illness Cover

  • Whole Of Life Insurance (Funeral Plan)

  • Life Insurance

  • Private Medical Cover


Rent loss insurance is recommended when you can’t afford to lose your rental property or money made from it. Standard homeowners insurance doesn’t offer adequate coverage when it comes to rental properties. Rent loss insurance is a good idea if you decide to rent out your home, either temporarily or long-term. Also, ensure your rent loss insurance policy covers legal fees to defend against any injury claims from fire or other casualty.


Being a landlord can be an expensive business, and if you haven’t got the right cover you’ll have to foot the bill if things go wrong.

We take a look at what makes up a good landlords’ insurance policy, and why it might be useful.

A thorough landlords’ policy can include a number of useful features, such as buildings insurance, accidental damage cover and financial protection against loss of rent.

Landlords’ insurance isn’t compulsory, but some lenders make it a requirement of taking out a buy-to-let mortgage.

Building’s insurance is one of the main types of cover that a landlord will need. It is important because it protects the bricks and mortar of your property.

For example, if your property suffers a flood or fire, buildings insurance will cover the rebuilding costs.

This usually includes replacing kitchens units and bathroom suites, while some policies may also cover sheds, garages and other outbuildings.

Before you take out buildings insurance you’ll need to know the rebuild cost of your property.

Contents insurance is another vital piece of cover, particularly if your property is rented fully or part-furnished.

This will protect your beds, carpets, sofas, TVs and other possessions from theft or damage.

It’s also possible to get extra cover for accidental damage, which could be anything from a smashed mirror to a coffee stain on an expensive rug.

Look for a policy that will replace your belongings on a “new for old” basis, which means your possessions will be replaced with shiny new ones, should you make a claim.

And remember, you don’t have to insure your tenants’ possessions – that is their responsibility.

Insurances are very much a minefield in themselves.

TIP: Did you know, if you are a in a relationship and you both need life coverthen most people take a joint life assurance policy. When one of the people die then the survivor gets the money to repay a mortgage. When the second person dies, the family have to pay Inheritance tax (Upfront) of 40% of any estate (property, savings etc) valued over £325000. If you write two “single life policies” then we can complete a “Trust” document which means the money is paid into a bank account and is not subject to IHT therefore not liability. The 2 policies would cost a little more per month but there are so many more benefits by doing this and the document you need to complete does not cost you any extra at all. Problem is no one really knows about apart from advisers.

Insurance Providers

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