Average Cost of Landlord Insurance

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Landlord Insurance Average Cost Guide for UK Landlords

Like any insurance product, the price is not fixed, but depends on a number of factors or variables. Landlord insurance will be more expensive than owner home insurance, as having tenants will pose more risk to the property.  It is also important to note that it is not compulsory, unless you have a loan and the loan provider mandates that you have cover in place.

Some factors that determine the cost will be out of your control, one example of this is the postcode of the property. The biggest determining factor is the price of the property and the amount of cover required. A starting figure for a base policy in 2023 is circa GBP195 per annum. This article will look further into the factors that determine the cost of landlord insurance in the United Kingdom.

Type Or Style Of Property 

average cost of  landlord insurance

Property within the UK fall into different risk categories.  A good example is a property with a thatched roof will be a higher risk and as such attract a higher premium. The main categories are listed below in subheadings

Average Cost Of Flat Insurance

Landlord insurance for a single flat or apartment which is typically 1 or 2 bedrooms will in general cost less than a typical house landlord policy. If you have purchased a block dwelling with multiple dwellings, a block of flats or a maisonette, expect to pay more for block of flats insurance, the cost being based on the size and location of the flat buildings.  

This type of policy is popular with residents associations and residents management companies that are tasked with the management of flats and flat blocks.

More Than One Property – Multi Properties

The average cost of multiple property landlord insurance will again depend on the number of properties. This type of policy has a few advantages, aside from keeping all paperwork under one policy, the insurance company should also give a discount as additional properties are added. 

Non-Standard Property

When it comes to providing an average cost for properties termed as non-standard properties, the cost will vary based on the non-standard category.  The main categories are thatched roof, listed buildings, and properties that are at risk of flooding.

  • Property with a thatched roof
  • Listed buildings
  • Building at risk of flooding

Commercial Property / Business Buildings Insurance

Average costs of commercial landlord insurance will be largely determined by the type of business that is using the property.  

  • Type of business that is renting the property (examples include : retail shops, office space, restaurants, warehouses or factory)
  • Rebuild costs of the commercial property
  • Buildings location

HMO Properties

The average costs for HMO or house in multiple occupation insurance will again be determined by a number of factors, see below. 

  • Size of HMO buildings
  • Number of occupants
  • Where the property is located
  • The type of tenant will also be important the main tenant types include students, professionals, DSS, Airnb
  • The type of rental property, shared house, loft, or a house converted to bedsits.

The Type of Occupants Can Play A Signifiant Role

The type of occupant or occupants will also play an important role in arriving at cost. It is worth noting that an unoccupied property is considered to be different in terms of risk in comparison to an occupied property.  If you are a landlord, the goal is to have your property generating return on your investment. However, be aware if the property becomes unoccupied for an extended period, for example between tenancies, the standard cover may become invalidated.   

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StyleAssumed Rebuild CostAnnual Premium
Detached£200,000£170 plus
Semi Detached£200,000£155 plus
Flat/Apartment£200,000£165 plus
Terrace£200,000£155 plus

Tips To Saving Money On Landlord Insurance

1. Get Multiple Quotes

1. Get Multiple quotes from providers of specialist landlord insurance, this will let you easily compare landlord insurance cost, inclusions and exclusions.  We work in partnership with quote searcher who provide a simple form which once completed is submitted to a specialist panel of brokers.  Start comparing the average cost of landlord insurance today. The panel can provide polices tailored polices to your exact requirements to your exact requirements for landlord commercial property and non-commercial.  

4. Review Security

Add extra security is an upfront cost, but it will lessen theft or damage and in addition will help bring your landlord insurance monthly costs. Some key areas to look at include:

Keep any outbuildings secureInstall a security system

Upgrade door locks

Addition steps to reduce fire

Add external security lighting and cameras

2. Consider Increasing Your Liability

A policy excess is the amount you’re responsible for paying if you make a claim. For example, if your policy has an excess of £500 and the claim amount is £1,000, the insurance company would pay £500, and you would cover the remaining £500. Many insurance providers offer lower premiums if you agree to take on more financial responsibility by increasing your excess. For specific details on available discounts, it’s best to speak with your insurance broker.

5. Pay Annually

Paying your premium as a single annual payment can help reduce administrative costs and often works out to be more cost-effective compared to spreading payments over monthly installments.

3. Consider all aspects for elements that can be insured cheaper 

While bundling everything into a single insurance policy might seem convenient, certain elements could be more affordable if insured through a specialist provider. For instance, loss of rent coverage might be cheaper with a broker who specialises in this type of insurance.”

6. Check the rebuild value

While it’s crucial not to underestimate the rebuild value of your property, it’s equally important to ensure it hasn’t been overestimated. An accurate rebuild value is key, as it significantly impacts the final cost of your insurance.

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Landlord Mandatory and Non-Mandatory Costs

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Fixed OverheadsDescriptionMandatory
EICRElectrical Safety Certificate Cost UK (EICR)It has been a legal requirement since 2020
Landlord Gas Safety Certificate CP12A CP12 certificate or gas safety certificate is issued to the owner of a property after a complete gas safety check has been carried out by a qualified technician.Yes, must be carried out at leats one per year for all fixed and non-fixed gas appliance
EPC (Energy Performance Certificate)EPC rating was introduced in England and Wales in 2007, and the document is always one of the requirements when selling or letting a property.Yes every 10 years

Landlord Insurance FAQ’s

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