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Guide To The Average Cost Of Landlord Insurance

By Eamonn Turley
Eamonn Turley Insurance Expert

Eamonn Turley has a wealth of experience within different insurance sectors. Through hard work and over time, he has gained expertise in digital marketing and user interface design. Elements that are crucial to any successful online business. The key aim is to develop websites that are intuitive, fast to load and provide insurance quotes tailored to your needs.

Expertise: Digital Marketing, Insurance, Home Insurance, Vehicle Insurance, UI Design
from the MultiQuoteTime Editorial Team - Fact checked

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July 2023

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 UK in 2023

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 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 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 apartments 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, 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

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.  

2. Consider Increasing Your Liability

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. Install 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:

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

4. Pay Annually

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

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 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 You 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 Building 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.

The building cost is without doubt the biggest determining factor in the cost calculation, the average UK rebuild cost stands at around, GBP22000 in 2023. After the rebuild cost, the extras that you add into the policy will also impact final cost.

  • 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.

Summary Of How To Save On Landlord Buildings Insurance?

  • Whilst monthly payments will help spread the cost, they normally come with hidden admin charges, so best to pay annually.
  • Get Multiple quotes to compare the market.
  • Improve the property security
  • Avoid unnecessary extras when building your policy
  • Increase your personal liability by increasing the agreed excess(the amount you agree to pay in the vent of a claim),
  • Avoid Claims, easier said than done, but vetting potential tenants will help.

Need Help Finding Low Cost Landlord Insurance?

MultiQuoteTime in partnership with SEPOA can help you find a low-cost landlord insurance policy tailored to your individual requirements. Complete the quote form to gain access to a panel of specialist insurance companies that specialise in providing bespoke cover to Landlords.  

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 You 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.

How Much is Monthly Landlord Insurance?

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.

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