The Renters’ Rights Act 2025 has already changed the landscape for private landlords in England, and one of the biggest shifts is the removal of Section 21 ‘no-fault’ evictions from 1 May 2026. This single change means you can no longer end a tenancy simply because you want the property back — you now need a specific legal reason under Section 8. For landlords who have relied on Section 21 as a safety net, that’s a fundamental shift in risk, and it makes having the right insurance cover more important than ever.
I’ve been watching this legislation develop for a while now, and the question I keep hearing from landlords is simple: what does this actually mean for my insurance? The answer isn’t as straightforward as you might think. The new rules don’t just affect how you evict — they change the kind of risks you’re exposed to, and that changes what your policy needs to cover. Here’s what you actually need to know.
What landlord indemnity actually means under the new rules
The term ‘landlord indemnity’ gets thrown around a lot, but what it really refers to is the protection you have when something goes wrong — a tenant stops paying, a visitor gets injured, or your property is damaged. Under the old system, Section 21 gave you a relatively quick way out if a tenant became problematic. That safety net is now gone. Your indemnity now comes almost entirely from your insurance policies and your legal grounds under Section 8.
What I’d do right now is look at your policy and check whether it includes rent guarantee and legal expenses cover. That’s the combination that matters most in a world without Section 21. If your tenant stops paying, you need a policy that will cover the lost rent and help you navigate the Section 8 eviction process. Without it, you could be months out of pocket while the legal process runs its course.
Why the abolition of Section 21 changes your risk profile
The removal of Section 21 doesn’t just affect evictions — it changes the entire risk calculation for landlords. Before May 2026, if a tenant fell into arrears, you could serve a Section 21 notice and have the property back within a few months, even if the arrears were relatively small. Now, you need to prove one of the specific grounds under Section 8, which takes longer and requires more evidence. According to guidance on the Renters’ Rights Act changes, you can still evict for rent arrears, anti-social behaviour, property damage, or illegal activities — but each ground has its own notice period and evidence requirements.
Let’s say your tenant falls two months behind on rent. Under the old system, you might have served a Section 21 and had the property back within four months. Under the new rules, you’d need to serve a Section 8 notice citing the rent arrears ground, wait for the notice period to expire, and then apply to court. The whole process could take six months or more. During that time, you’re not receiving rent, and you’re still responsible for the mortgage, insurance, and any maintenance costs.
This is where the demographic split matters. If you’re a landlord in a high-demand area like London, you might be able to re-let quickly once you get possession. But if your property is in a slower market, the void period could stretch even longer. I’ve noticed that landlords in university towns and coastal areas tend to face longer void periods, which makes rent guarantee cover even more critical for them.
What I’d do in this situation is make sure your policy includes legal expenses cover that specifically helps with Section 8 evictions. Some policies offer this as standard, but many don’t. A tenant landlord lawyer can also help you understand the specific grounds you’d need to prove and what evidence to gather from the start of the tenancy.
Where landlords are getting their insurance wrong
The most common mistakes I see aren’t about having no insurance — they’re about having the wrong kind. Here are the three biggest errors landlords are making right now.
Assuming buildings insurance is enough
Buildings insurance is almost always mandatory if you have a buy-to-let mortgage, and it covers the structure of the property. But it doesn’t cover your lost income if the property becomes uninhabitable due to a fire or flood. Loss of rent cover is an add-on that pays you the rental income you’d lose while the property is being repaired. Without it, you could be paying the mortgage on a property you can’t rent out. The complete guide to landlord insurance in 2026 notes that loss of rent cover is one of the most commonly overlooked policies, yet it’s relatively cheap — often less than £50 a year.
Ignoring property owners’ liability cover
Property owners’ liability (POL) covers claims from tenants, visitors, or neighbours who are injured on your property. If a tenant trips on a loose stair carpet and breaks their ankle, they could sue you for thousands. POL cover typically starts at around £2 million and can go up to £5 million. The cost is usually under £100 a year, but I’ve seen landlords skip it because they think their buildings insurance covers liability. It doesn’t. Buildings insurance covers damage to the structure, not injury to people. If you’re a landlord with a garden, a shared hallway, or any communal area, the risk is even higher.
Not updating cover after the Renters’ Rights Act
Many landlords took out their insurance policies years ago and haven’t reviewed them since. If your policy was written before May 2026, it almost certainly assumes Section 21 is available as a fallback. That means your rent guarantee and legal expenses cover might not be adequate for the new Section 8 process. Some insurers have updated their policies to reflect the new rules, but many haven’t. I’d recommend checking your policy documents and asking your insurer directly whether your legal expenses cover includes assistance with Section 8 evictions. If it doesn’t, you need to upgrade.
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| Cover Type | What It Covers | Typical Annual Cost |
|---|---|---|
| Buildings insurance | Structure reinstatement after fire, flood, storm, subsidence | £180–£400 |
| Contents insurance | Landlord-supplied items (white goods, carpets, furniture) | £60–£150 (unfurnished) / £200–£400 (furnished) |
| Property owners’ liability | Injury claims from tenants, visitors, or neighbours | £50–£100 |
| Loss of rent | Lost rental income while property is uninhabitable | £30–£50 |
| Rent guarantee + legal expenses | Lost rent and legal costs if tenant stops paying | £100–£200 |
One mistake I see a lot is landlords buying a cheap policy online without reading the exclusions. For example, many standard policies exclude tenant damage — if your tenant puts a hole in the wall, you might not be covered unless you have accidental damage add-on. If you’re letting to students or tenants with pets, that’s a risk worth thinking about. A Wi-Fi water leak detector can help you catch small leaks before they become big claims, which is exactly the kind of proactive step that keeps your premiums down.
How to build the right insurance package for your rental property
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Building the right insurance package isn’t complicated, but it does require you to think through the specific risks your property faces. Here’s how I’d approach it.
Start with the mandatory cover: buildings insurance
If you have a buy-to-let mortgage, your lender will require buildings insurance. The key is to insure for the rebuild value, not the market value. The rebuild value is what it would cost to completely reconstruct the property if it were destroyed — this is usually much lower than the market value. You can find the rebuild value on your RICS valuation or by using the BCIS calculator. If you’re a leaseholder, check whether the freeholder’s block policy already covers the building. If it does, don’t double-insure — but do check that the sum insured is adequate and that your interest as leaseholder is noted on the policy.
Add loss of rent and rent guarantee cover
This is the cover that matters most under the new rules. Loss of rent pays you if the property becomes uninhabitable due to an insured event like a fire or flood. Rent guarantee pays you if your tenant stops paying rent. Some policies bundle these together, but many don’t. I’d recommend getting both. The cost is usually around £100–£200 a year, which is a fraction of one month’s rent. If you’re a landlord with a high loan-to-value mortgage, this cover is even more important because you can’t afford a void period.
Don’t skip property owners’ liability
This is the cheapest cover you’ll buy, and it’s the one that could save you from a catastrophic claim. If a tenant or visitor is injured on your property, the legal costs alone could run into tens of thousands. POL cover typically costs under £100 a year and provides £2 million to £5 million of cover. If you have a garden, a shared entrance, or any communal area, the risk is higher. I’d also recommend checking whether your policy covers you for claims from neighbours — if a tree from your garden falls on a neighbour’s car, you want to be covered.
Consider contents cover for furnished lets
If you’re letting a furnished property, contents cover is essential. The replacement cost of beds, sofas, TVs, and wardrobes can easily run to several thousand pounds. Standard contents policies often exclude accidental damage, so you may need to add that as an extra. If you’re letting an HMO, make sure your contents cover extends to shared furniture and appliances in communal areas. Some insurers require a separate HMO contents schedule, so check before you buy.
Review your policy annually — especially now
The Renters’ Rights Act is a major change, and insurers are still adjusting their policies. What was adequate cover in 2025 might not be adequate in 2026. I’d recommend reviewing your policy every year and asking your insurer specifically whether your legal expenses cover includes assistance with Section 8 evictions. If it doesn’t, shop around. A tenant landlord lawyer can also help you understand what evidence you need to gather from day one of a tenancy to support a future Section 8 claim if things go wrong.
Frequently asked questions about landlord indemnity
Do I need landlord insurance if I have a buy-to-let mortgage? ▾
Can I still evict a tenant after 1 May 2026? ▾
What happens if I don’t give my tenant the Information Sheet by 31 May 2026? ▾
Does rent guarantee insurance cover Section 8 eviction costs? ▾
Is property owners’ liability cover the same as public liability? ▾
What should I do if my tenant requests a pet? ▾
Sources and Further Reading
Understanding tenant service charge budgets — A practical guide to what service charges cover and how to budget for them as a landlord or tenant.
Essential UK building regulations for tenants — Key regulations every commercial tenant should be aware of, from fire safety to accessibility.
Renters’ Rights Act Information Sheet 2026. Ministry of Housing, Communities and Local Government, 2026.
What the Renters’ Rights Act means for landlords and insurance. Bionic, 2026.
Landlord insurance UK 2026 complete guide. LetCompliance, 2026.
