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What does landlord insurance cost? And what is the average cost of landlord insurance if you are a UK landlord? You can get this answered right here on this page.

You can also learn a lot more about the cost of cover including....

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  • How landlords manage their policy and the cost?
  • Learn how the costs effect different property types
  • How to budget for cover every month
  • Learn about the Landlord Licensing Scheme
  • What cover will cost you over the year
  • The advantages of paying monthly

There is plenty here for landlords, so take your time and if you want to leave a comment, you can here or at the bottom of the page.

Table of Contents

The typical costs of being a landlord in the UK

As you know there are costs involved when you are a landlord in the UK and everywhere else in the world. As a UK landlord, you'll notice yearly costs like insurance for one, then the costs of keeping the tenant in safe hands.

Here's what an average landlord needs for tenants...

  • You need an annual inspection certificate
  • Liability insurance cover (not necessary, but wise to have)
  • Cost of repairs to properties ( leaking roofs and faulty equipment)

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How much is landlord insurance roughly?

This is a good question because there is no right answer. If you are a landlord with a few houses you rent out, then the costs won't be as much as a landlord with 20 properties under their belt.

A policy for each property will cost you around £150 to £220 per year with the low end (just buildings insurance) costing you about £100 per year. 

Get accurate an landlord insurance cost here!

Please don't take this as gospel as policies differ from insurer to insurer. The best way to know for sure is to compare prices with a good comparison website.

If you have multiple properties you can expect a good discount of around 20% off the total price of each policy. If you take out separate policies with separate companies you will pay more, so it's a good idea to move them to one insurer.

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Do I need a landlord licence?

You may need a landlord licence under the "Landlord Licensing Scheme" depending on the council your property comes under. Some councils are exempt from licencing but most require you have one.

The cost of a landlord licence can cost you around £90 to £110 per year. Some councils offer a term where you can pay the fee for five years for a cost of around £520.

In my opinion, this is a terrible way to treat landlord and I think it makes no difference at all when it comes to "anti-social behaviour", which is why the scheme was started in the first place.

Landlords have their own instinct about tenants and need no council to regulate their business. It's just another way to get money from you.

To get a licence, the landlord (or who is receiving the rent) needs to make the application and you need a licence for each property you own or rent out, yes, one for each property.

You will also need the following to stay safe from the council and the heavy fines the dish out - like £5,000 or £20,000 if you fail to have any of these...

  • You must have references for the tenant you choose
  • Items you supply as a landlord (electrical items and items of furniture) must work and be in order
  • You must have a valid gas safety certificate, annually
  • You need to test all smoke alarms are working and replace batteries annually (well, it's better to replace the batteries annually)
  • The tenant must be given a copy of their tenancy agreement

For for information about the landlord licensing scheme you can check out the government website here.

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How much is landlord insurance for a flat?

Flats can cost a bit less because they are not as big as housings and most rented flats are one or two bedroom properties. The bigger the property and the value of that property are taken into consideration by the insurer- that's the way to look at it.

With most flats and the tenants that occupy there are still costs involved like the licence and what the licencing requirements are. If you look after the requirements, then your business will be safer in the eyes of the law.

If you want a quote for a flat you can do this here.

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How much is landlord insurance every year?

So how much does landlord insurance cost on average then? The cost of a policy cannot be assessed with one answer because a policy consists of different types...

  • Landlord building insurance cost - £130 per year
  • Landlord contents insurance cost - £110 per year
  • Landlord rent guarantee insurance cost - £150 per year
  • Landlord emergency assistance insurance cost - £145 per year

This is just an approximate or average cost of landlord insurance and you must get quotes in order to find an accurate price.

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How much is landlord tax?

Landlord tax is a job for an accountant but I've given you some basic information about renting properties out and the tax you pay.

If you earn over £5,965 a year, then you need to pay Class 2 National Insurance over that amount if your income exceeds the tax fresh hold.

Or..

  • If you are a landlord and it's your full-time job
  • If you're a portfolio landlord and rent out more than one property
  • If you are constantly buying new property to rent to as a business

If you own the properties outright, then you need to pay tax on that over £10,000 annually.

You can also claim for things like:

  • sofa beds and single and double beds
  • fridges or fridge freezers
  • sofas and arm chairs
  • curtains around the let property
  • any crockery and cutlery you buy for the let property
  • carpets for the let property

Useful web links: 

Income tax advice for renting lets from the .gov website:

Renting and tax information in England and Wales: Link

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Is it worth the cost for landlords and their business?

It is if you take it seriously and managing it like a business. If you're taken to court for any mistakes you make along the way it will be very costly, but with insurance, it can take a load off your shoulders.

Many landlords are reluctant to buy landlord insurance, but as your business grows, so does the need for covering liabilities. The cost every month (if you pay it monthly) can be only £15 so you see it can be affordable.

Find out your landlord insurance cost and compare deals here.

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Can you spread the cost over the year?

Yes. Most landlord insurers offer you a payment plan so you can manage the cost to your business. You'll need to set up a direct debit from your business account or your personal account if you only have one or two properties.

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How much does landlord insurance cost per month?

I mentioned that previously but here it is again. It will cost you around £15 to £30 per month for standard policies, but it can be in the region of £40 to £70 for high-end properties.

Paying it every month is an option most landlords go for.

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What's the cost of landlord buildings insurance?

If you choose to only have buildings insurance it can cost anywhere between £20 to £50 per month, but this depends on insurance rates as rates change all the time. 

The best way to find the right answer would be to compare rates when you need building insurance for landlords and remember to compare rates every year because you could save quite a lot by doing this.

The landlord insurance cost for buildings insurance is not avoidable.

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What does landlord contents insurance cost?

The cost of contents insurance for landlords depends again on the value you insure the contents for. Your contents could be worth a lot of money, but them again, they may be not worth insuring.

If you rent out a furnished flat you can cover the contents with a policy to replace things like, electrical equipment, sofas, fridges and items that are stolen by the tenant, if that happens.

You can also take on accidental damage cover to replace expensive items or take cover out for malicious damage caused by tenants. 

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Is emergency assistance insurance worth the cost?

If you have many flats or rented houses, then a policy like this is worth every penny for landlords. Paying for emergency plumbers and joiners is expensive when it comes out the landlord's own pocket.

If you lose your keys or the tenant does and you don't have a spare set, be prepared to pay a few hundred pounds for a locksmith. If you have emergency cover added to your policy it can save you a lot of hassle contacting different companies to make your property safe and secure again.

It is part of your agreement to make sure the tenant is in safe hands and it is the law under your licence if you have one. The policy will also pay for window replacement if you come across a smashed window.

Emergency assistance is combined with your landlord insurance cost.

Get a quote here landlords.

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What is the cost of landlord insurance for listed buildings?

Landlords insurance for listed building is another story as things can be more expensive compared to a standard house. Even the windows fitted to listed buildings can cost more to replace and the upkeep of your building as a whole.

It can cost £250 to £500+ for landlord insurance for listed building depending on the value and the type of cover you take out with your insurers.

It is the rebuild cost that can take your policy over what you might think it costs. It's the same for all policies.

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What is the cost for commercial buildings?

Commercial buildings like factories, retail shops and the buildings you see in industrial estates can cost a lot more because it costs more to replace them or rebuild them. If you own one of these properties the landlord insurance company will offer you a more expensive policy compared to insuring a house or a flat.

Working out your landlord insurance cost for commercial buildings.

This is common sense really and if you're building costs 3 million pounds to repair or you are recovering from a fire, then you could pay £1,500 to £2,000 per year for a standard commercial landlord insurance policy. The insurance company will want you to make sure that they are proper fire procedures in place and your smoke alarms have been tested every week and sometimes every day.

You need to prevent fires from starting in the first place or your insurance company may not pay out if it was a fault of your own.

Commercial landlord insurance costs will be more expensive.

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How to cut landlord insurance costs?

There is no real way to cut the cost of an insurance policy because rates are calculated in a risk format. However, you can cut contents and loss of rent insurance from your policy so you know your building is covered only.  Another way to cut the costs would be to compare landlord insurance and get quotes from as many companies as you can. 

As far as cutting costs go you may want to think about what your business can afford and take comprehensive cover if it is available or you can afford it.

If you want to cut your landlord insurance cost, find a better price here.

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Does landlord insurance cost more than homeowners insurance?

This is a very wide-angled-question because you could have an expensive home, valued at £500,000 and a building you use as a landlord valued at £100,000.  So which one is going to be more expensive, your home insurance or your landlord insurance?

Homeowners insurance vs landlord insurance cost

Your home insurance may cost you £250 per year because you have high-value contents. Then again, you might only take buildings insurance out for your home insurance policy and leave out contents insurance.  You could also do the same with your landlord insurance policy, so you see there so many factors to insurance and to be honest, you need to contact an insurance company directly because I can't tell you that answer today.

All I can do is give you a rough estimate so you can see the difference between a home or landlord policy. And so you remember, the policy is based on the value of the property and what you use it for, along with other things of course.

What is your landlord insurance cost?

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How much should landlord insurance cost landlords?

A comprehensive course it will cost you around £300 per year, but it could be more or less because rates change every single day.  You can cut this policy enter different parts as well because there are so many different types of add-ons you can add to your landlord insurance policy.  

This is how it works so you can get an idea of what it will cost you when you get a quote and if you don't see the right price keep working for the best one.

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How to find low-cost landlord insurance?

We can help you find a low-cost landlord insurance policy absolute no problem.  We have access to a special form which puts you in touch with specialist insurers for commercial buildings or a person who has maybe one two or three properties. Here is the link so you can compare policies from a range of different brokers and insurance companies.

Click here to start your quote and find the policy you are looking for today. Or if you need help fill the form in you can read the following below you.

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How to use the landlord insurance comparison form

When you click on that link for the quote form, you will start by choosing a policy start date. You can work your landlord insurance cost when you get some prices.

Then you will be asked how many properties you can cover (up to five).

Then the next stage is to input all your contact details so the insurance company can get a hold of you after you have finished. Then the forum will ask you if you have made any claims in the last 5 years, fill in this part.

The next part is the property details of your let building. The forum will ask you what type of, you're looking for and whether or not you want contents insurance, so input the value and move on to the next stage.

You'll see the form asks you five or six other questions related to your property, so fill that in and then click " get quotes"  and you're done.

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Video Guides

This video asks the question "What is landlord insurance?"

Common Features Of Landlords Insurance

Other Online Information

Rentguard - for rent cover

See Rentguard for rent cover and more for UK landlords.

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