Nearly one in five UK landlords have had a claim on their insurance rejected because they held the wrong type of policy. That figure has stuck with me since I first came across it, because it points to a problem that is almost entirely avoidable. If you rent out a flat or a house, the difference between standard home cover and proper landlord insurance is the difference between being protected and being left exposed when something goes wrong.
I have been writing about property and personal finance for long enough to see the same pattern repeat itself every year. A landlord buys a buy-to-let, assumes their existing buildings policy will do the job, and only discovers the gap when a tenant floods the kitchen or a boiler fails in December. By then, the insurer has already declined the claim. The Renters’ Rights Act 2025, which came fully into force in May 2026, has made this worse by shifting more responsibility onto landlords. Understanding what your lease insurance actually covers is no longer optional — it is a legal and financial necessity. Here is what you actually need to know.
If you are currently renting out a property or planning to, the first practical step is to check whether your existing policy is still valid. Many standard home insurance contracts become void the moment a tenant moves in. A quick call to your provider can confirm this, but do not rely on a verbal assurance — ask for it in writing. For a deeper look at what else might catch you out, our guide on hidden costs of renting in the UK covers the financial surprises that often go unmentioned. A smart water leak detector is one small investment that can prevent a much larger claim down the line.
What landlord insurance actually covers and why it matters now
The most important thing to understand is that landlord insurance is not a luxury — it is a requirement that most mortgage lenders will enforce before they release funds on a buy-to-let property. If you try to use a standard home insurance policy, you are effectively uninsured from the day a tenant moves in. The risk profile of a rental property is fundamentally different from an owner-occupied home. Tenants do not have the same incentive to maintain the property, and the legal liabilities around injuries, evictions, and property damage are far more complex.
What I tend to notice when I speak to landlords is that most of them understand they need insurance, but very few have actually read the policy wording. They assume that “buildings and contents” covers everything. It does not. Standard landlord policies typically exclude pet damage, gradual wear and tear, and certain types of tenant-caused damage. The Renters’ Rights Act has made these exclusions more dangerous because tenants now have greater rights to keep pets and to challenge evictions. If you are renting out a property, my first move would be to pull out your policy schedule and check exactly what is excluded. If you see the word “accidental damage” limited to a small sub-limit, that is a red flag. For more context on what to look for in a tenancy agreement, our apartment rental lease signing checklist covers the key clauses every tenant and landlord should review.
How the Renters’ Rights Act changes your insurance needs
The Renters’ Rights Act 2025, which received Royal Assent in October 2025 and came into force in May 2026, is the most significant overhaul of landlord obligations since the Housing Act 1988. It directly affects what your insurance policy needs to cover. The abolition of Section 21 ‘no-fault’ evictions is the headline change, but the practical consequences go much deeper.
Consider this scenario. A tenant stops paying rent in June. Under the old rules, you could serve a Section 21 notice and begin eviction proceedings relatively quickly. Now, you must use Section 8 grounds, which require documented evidence — rent arrears records, gas safety certificates, written communications. The process takes longer. If your rent guarantee policy only covers six months of lost income, you could run out of cover before the tenant is evicted. That is why industry guidance now recommends extending rent guarantee cover to at least 12 months.
Another change that catches landlords out is the new rules around pets. Tenants now have the right to request a pet, and you cannot unreasonably refuse. An early draft of the Act required tenants to fund pet damage insurance, but that provision was removed. This means you can ask a tenant to arrange cover or reimburse you, but you cannot legally require it as a condition of the tenancy. Standard landlord policies typically exclude pet damage, so adding a pet damage extension to your own policy has become a practical necessity. If you are unsure whether your current policy covers this, a tenant landlord lawyer can review the wording and advise on what gaps to close.
There is also a less obvious change that affects how you let your property. From 30 April 2026, insurance policy terms that would require a landlord to discriminate against tenants with children or those receiving housing benefits are unenforceable. If your current policy contains clauses that effectively prevent you from letting to these groups, those clauses are now void. You should check your policy and, if necessary, switch to a provider that does not rely on such terms. For a broader look at how these changes affect your rental strategy, our article on negotiating rent in the UK covers the shifting dynamics between landlords and tenants.
Where landlords get their insurance wrong
The most common mistakes I see are not about whether to buy insurance, but about what kind of insurance to buy and how to maintain it. These errors are expensive, and they are almost always avoidable.
Using a standard home insurance policy for a rental property
This is the single most frequent error. A landlord buys a buy-to-let property, keeps the existing home insurance policy in place, and assumes it will cover them. It will not. Standard home insurance policies become invalid the moment you start renting out the property. If a tenant causes a fire or a flood, the insurer will decline the claim, and you will be left covering the full cost of repairs yourself. The fix is straightforward: switch to a specialist landlord insurance policy before the tenant moves in. Most buy-to-let mortgage lenders require this anyway, so there is no reason to delay.
Not extending rent guarantee cover after the Section 21 abolition
Many landlords have rent guarantee insurance that covers six months of lost rental income. That was adequate under the old rules, when Section 21 evictions could be completed relatively quickly. Now that Section 21 has been abolished, evictions take longer. If a tenant stops paying, you could be waiting eight, ten, or even twelve months before you regain possession. A six-month rent guarantee policy will run out before the process is complete. The solution is to check your policy and, if necessary, extend the rent guarantee period to at least 12 months. Some insurers offer this as an add-on, but you have to ask for it.
Ignoring the pet damage gap
Tenants now have the right to keep pets, and you cannot legally require them to pay for pet damage insurance. Standard landlord policies typically exclude pet damage. This means that if a tenant’s dog scratches the wooden floors or chews through a door, you are unlikely to be covered. The fix is to add a pet damage extension to your own policy. This is usually inexpensive — often around £20 to £40 per year — and it closes a gap that could otherwise cost you thousands. If you are unsure whether your current insurer offers this, a health insurance specialist is not the right person to ask — instead, speak directly to your insurer or a broker who specialises in landlord cover.
Failing to provide the mandatory Information Sheet
This is a procedural mistake, but it has a direct financial consequence. Landlords and letting agents were required to give tenants the Renters’ Rights Information Sheet by 31 May 2026. Failure to do so can result in a fine of up to £7,000. The Information Sheet must be the exact PDF from the government website — you cannot email a link to it; you must attach the PDF itself. If you missed this deadline, you should provide the sheet as soon as possible and keep a record of when and how you sent it. For more on what to watch out for during the rental process, our guide on spotting red flags in your apartment rental application covers the warning signs that both tenants and landlords should take seriously.
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| Change Under Renters’ Rights Act | What It Means for Insurance | Action Required |
|---|---|---|
| Section 21 abolished | Evictions take longer; rent guarantee cover may run out | Extend rent guarantee cover to 12+ months |
| Rolling periodic tenancies replace fixed-term ASTs | No fixed end date; policy must cover periodic tenancies | Confirm policy wording covers rolling tenancies |
| Tenants can keep pets with consent | Pet damage not covered by standard policies | Add pet damage extension to your policy |
| Discriminatory insurance clauses banned | Clauses against children or benefit claimants are unenforceable | Review and replace any non-compliant policy |
What to do now: a practical guide to getting your insurance right
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The changes brought by the Renters’ Rights Act are not something you can afford to deal with later. Here is what I would do if I were in your position right now.
Review your current policy against the new legal requirements
Start by pulling out your current landlord insurance policy and reading the exclusions section. Look for any mention of pet damage, rent guarantee limits, and clauses that reference fixed-term tenancies. If your policy still assumes fixed-term Assured Shorthold Tenancies, it may not cover the new rolling periodic tenancies that replaced them. Contact your insurer and ask them to confirm in writing that your policy covers periodic tenancies. If they cannot give you that confirmation, start shopping for a new policy. A tenant landlord lawyer can also review your policy wording and flag any clauses that may leave you exposed under the new rules.
Extend your rent guarantee cover to at least 12 months
If your current rent guarantee policy covers six months of lost rental income, it is probably not enough. Contact your insurer and ask about extending the cover period. Some insurers offer this as a standard add-on; others may require you to switch to a different policy tier. The cost difference is usually modest — often £30 to £60 per year — and it could save you thousands if a tenant stops paying. If your insurer does not offer 12-month cover, look for a specialist landlord insurance provider that does.
Add pet damage cover before a tenant moves in with a pet
Under the new rules, a tenant can request to keep a pet, and you cannot unreasonably refuse. If you wait until after the pet moves in to add cover, you may already be exposed. Add a pet damage extension to your policy now, even if you do not currently have a tenant with a pet. The cost is typically low, and it closes a gap that standard policies leave wide open. If your insurer does not offer this extension, consider switching to one that does. A carbon monoxide alarm is another small investment that can prevent a much larger claim — and it is a legal requirement in any rental property with a solid fuel appliance.
Prepare for the PRS Database registration
From late 2026, all landlords must register themselves and each rental property on a new Private Rented Sector (PRS) Database. Registration will be mandatory before you can seek possession of a property. This is not something you can ignore. Start gathering your documents now: gas safety certificates, electrical installation condition reports, energy performance certificates, and proof of landlord insurance. Having these ready will make the registration process much smoother. If you are unsure what documents you need, our guide to renting shared accommodation in the UK includes a checklist of the key documents every landlord should have on file.
- 1Review your policy exclusionsRead the exclusions section of your current landlord insurance policy. Look for gaps around pet damage, rent guarantee limits, and periodic tenancy cover. Contact your insurer for written confirmation.
- 2Extend rent guarantee coverIf your policy covers less than 12 months of lost rent, ask your insurer about extending the cover period. If they cannot offer it, switch to a provider that can.
- 3Add pet damage coverAdd a pet damage extension to your policy now, even if you do not currently have a tenant with a pet. The cost is low and the protection is essential under the new rules.
- 4Prepare PRS Database documentsGather gas safety certificates, EICRs, EPCs, and proof of insurance. Having these ready will make the mandatory PRS Database registration smoother when it opens in late 2026.
Frequently asked questions about apartment lease insurance
Can I use my standard home insurance for a rental property? ▾
What happens if my tenant has a pet and I do not have pet damage cover? ▾
How long should my rent guarantee cover last under the new rules? ▾
Do I need to provide the Renters’ Rights Information Sheet to my tenant? ▾
What is the PRS Database and do I need to register? ▾
Can my insurer force me to refuse tenants with children or on benefits? ▾
The Renters’ Rights Act has changed the rules of the game for landlords, and your insurance policy needs to reflect that. The most important thing you can do right now is review your policy, close the gaps around rent guarantee and pet damage, and make sure you have provided the mandatory Information Sheet to your tenants. If this was useful, you might also want to read top tips for renting a room in the UK.
Sources and Further Reading
Balcony benefits: what to look for when renting in the UK — A practical guide for tenants and landlords on what to check before signing a lease on a property with outdoor space.
Top change of address tips for new UK renters — A step-by-step guide to updating your address with banks, utilities, and government agencies after a move.
How the Renters Rights Act 2026 affects landlord insurance. AOIG, 2026.
The Renters’ Rights Act: Information Sheet 2026. UK Government, 2026.
Landlord insurance: a complete guide for UK landlords. JF Property Partners, 2026.
