Average Cost of Landlord Insurance UK 2022

Average Cost Of Landlord Insurance 

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Average Cost Of Landlord Insurance UK

Last updated 15th June 2022 by editorial team

Link 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 than homeowner.  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, for 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  base policy in 2022 is circa GBP195 per annum. This article will look further into the factors that determine the cost of landlord insurance in the UK in 2022  

Type or style of property 

average cost of  landlord insurance

Property within the UK can be put into insurance categories. The category will impact the final premium. 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 sub headings

Average Cost Of Apartment 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 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 apartments and flat blocks.

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 costs of non standard properties will depend 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 

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.

Occupants

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, so have occupants are key to that goal. However, be aware if the property becomes unoccupied for example between tenancies, the standard cover may become invalidated.   

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

6 Tips to saving money on landlord insurance

1. Compare the average over a panel of UK specialist brokers

1. Find a specialist broker that deals primarily with landlord insurance. These brokers should have access to a wider panel of underwrites with. 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.  

2. Consider reducing the excess

A policy excess is the amount that the policyholder would be liable for in the event of  claim. Example if a policy has an excess of GBP500 and the claim amount were to be GBP1,00, the insurance company would pay out GBP500 leaving you to shoulder the remaining GBP500.  Most providers of insurance will lower the premium if the policyholder takes on more responsibly by increasing their liability. Speak with your perspective broker for exact discounts available.

3. Protect your property

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:

  • Install a security system
  • Upgrade door locks
  • Addition steps to reduce fire
  • Add external security lighting and cameras
  • Keep any outbuildings secure

4. Pay in full upfront

Paying the premium upfront as one annual payment will reduce admin costs and normally will work out cheaper than paying monthly.

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

It is tempting to bundle everything into one insurance policy, but some elements may work out cheaper if insured with a specialist provider. For example, loss of rent may be cheaper with a broker that specialises in this type of cover.

6. Check the rebuild value

Whilst it is important not to underestimate the rebuild value, it is very important to check it has not been excessively overestimated, as this is one of the  key determining factors to the final cost.

Landlord Mandatory and Non Mandatory Costs

Fixed OverheadsDescriptionCost ApproximateMandatoryMore Info
EICRElectrical Safety Certificate Cost UK (EICR)It has been a legal requirement since 2020Order Online
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.£75Yes, must be carried out at leats one per year for all fixed and non-fixed gas applianceOrder Online
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 yearsRead More
Smoke and Gas DetectorsSmoke and gas detectors or sensors are relatively inexpensive and easy to installAll landlords are required to supply and install smoke and Carbon Monoxide alarms.Read More Comings Soon

Why is landlord insurance more expensive than standard house cover?

A standard house policy is not designed to cover the extra perils that come with letting out a property, these specialist polices will include or have options for additional cover, for example alternative  accommodation, loss of rent and property oners liability. 

The average cost of landlord insurance is on average more expensive than standard homeowner building insurance. This is simply because  a building that is being let out to third parties opens up additional risk to the insurance provider.

Do I need a landlord licence?

If the property is in a selective licensing area then yes you will need a landlord licence, or face fine anywhere up to a maximum of £20,000. Expect to pay  between £90 to, £110 per year for the required licence. 

What Affects the Cost of Landlord Insurance?

The cost will be determined by the cover you choose and the level of that cover. For contents, building and fixtures and fittings, the cost will be based on the cost to rebuild or replace. As such, it is important that these are estimated correctly. The insurance company will look at dozens of factors to determine the insurance cost, below we have listed the more significant factors.

  • Rebuild Cost
  • Construction material
  • Occupied or unoccupied
  • Number of properties in portfolio
  • Type of tenant (Student, HMO or house shares, housing associations, Employed / Not employed)
  • Addition add-ons example fixture and fitting, loss of rent, tenant defaulting on payment etc)
  • Location and year built.

How much is landlord insurance per month, UK?

The average cost of landlord insurance per month in the UK is under GBP15 per month, but that is an average across different property types and prices. Many factors will determine the final cost. Fo those that multiple properties, a multi property landlord insurance may work out cheaper than having separate policies. Multi policies normally work by giving a discount as you add more properties, but always compare all options.

Landlord Insurance FAQ's


does a landlord have to have an electrical safety certificate?

A landlord is legally required to have an electric safety certificate, the certificate must be renewed every 5 years in the UK. The inspection must be carried out by a qualified and competent person or company who are authorised to issue the required safety certificate. 

do i need landlords insurance by law?

Landlord insurance is not required by law. However, if you have a loan on the property, it is most likely to come with a condition  that you have buildings insurance and overall adequate protection.  

are landlords responsible for pest control ?

The landlord will be legally responsible for dealing with pest control, should it be an issue. This is covered in the contract with a clause that sates that the landlord must keep a property safe and habitable for tenants. However, if the cause of the pest is deemed to be the fault of the tenant, then it is the tenant that will be held responsible.

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