Landlord Insurance in the UK: What Overseas Buy-to-Let Owners Should Check Before They Let

The Short Answer

If you let out a UK property, tell your insurer and make sure the policy is written for letting. Check that it covers the building, your contents and liability to tenants and visitors. Consider optional cover for loss of rent and legal expenses. Your mortgage lender and, for a flat, the freeholder or management company may also have insurance requirements. Details vary by insurer, so read the policy wording, not only the summary.

The Main Types of Cover

• Buildings cover for the structure, fixtures and fittings, against risks such as fire, flood, storm and escape of water. For a leasehold flat, the building is usually insured by the freeholder or management company. See our guide to buildings insurance for flats and houses.
• Landlord contents cover for items you own and provide, such as furniture, white goods and carpets. Your tenant's belongings are their responsibility.
• Property owner's liability if a tenant, visitor or neighbour is injured or their property is damaged and you are held responsible.
• Loss of rent if an insured event makes the home unlettable. Check how long it pays and what triggers it.
• Rent guarantee if a tenant stops paying. Insurers often require tenant referencing and may have conditions on the tenancy.
• Legal expenses towards the cost of recovering rent or possession.
• Accidental damage to the building or contents, which is often an optional extra.

What Insurers Ask

• Who lives in the property: a single household, sharers or a house in multiple occupation (HMO).
• Whether the tenant is on benefits, a student or a company let. Some policies exclude or price these differently.
• How long it may stand empty between tenants, and what happens after a set number of days.
• The age and construction of the building, the state of the wiring and any past claims.
• Whether you are resident in the UK. Some insurers need a UK correspondence address or a managing agent.

Exclusions to Read Carefully

• Unoccupied clauses. Cover for water damage or theft can reduce or stop if the property is empty for longer than the policy allows.
• Unreferenced tenants. Rent guarantee and sometimes other cover can depend on referencing. Our guide on tenant referencing and guarantors explains how it works.
• Unapproved changes. Work done without permission or building regulations sign-off can affect a claim.
• Safety certificates. Some policies expect gas and electrical checks to be in date. Read landlord safety certificates in England.
• Excesses. A low premium with a high excess can cost more on a claim.

Working From Overseas

• Keep a UK contact or managing agent who can attend the property, receive insurer correspondence and arrange repairs.
• Ask whether claims can be made by email and phone from abroad, and what evidence is needed.
• Store certificates, inventories and tenancy documents where your agent can reach them. Our guide to the check-in inventory shows why the starting record matters.
• Ask your letting agent which insurance, if any, they arrange or recommend, and whether they hold client money protection.

Before the First Tenancy: A Checklist

• Tell the buildings insurer, in writing, that the property will be let, and get the policy confirmed as suitable for letting.
• Confirm lender and freeholder requirements and that the policy meets them.
• Decide whether to buy loss of rent, rent guarantee and legal expenses cover.
• Compare the wording on exclusions, excess and unoccupied periods, not only the premium.
• Diarise the renewal date and re-check the cover each year.

Talk to Banke UK

Insurance is one of several costs and checks that sit around a buy-to-let purchase. Contact the Banke UK team if you would like help planning the full cost of buying and letting from overseas.

We have not quoted premiums or limits because they depend on the property, the tenant and the insurer. We are not insurance brokers, and cover should be arranged through an authorised broker or insurer. This is general information, not legal, tax or financial advice. Rules and procedures change, so confirm current details with the relevant authority or a qualified professional before you commit money.