Landlord & Property Owners Insurance
If you are a property owner, you need insurance that fits your exact requirements, protecting your assets and investments including its unique features.
Quick Summary
- Covers both residential and commercial portfolios: Whether you own a single buy-to-let flat or a mixed commercial estate, we tailor a policy to your exact risk profile.
- Underinsurance is the biggest risk: Incorrect rebuild values trigger the “Average Clause,” which can reduce your claim payout by thousands — even on small claims.
- Loss of Rent indemnity periods matter: Standard policies often default to 12 months. For major rebuild scenarios, we typically recommend 24 to 36 months.
- Unoccupied properties require prompt notification: Cover is often restricted after 30 to 60 days’ vacancy. We can advise on compliance conditions and specialist unoccupancy products.
What is Property Owners & Landlord Insurance?
Property Owners Insurance — often called Landlord Insurance — is a specialist policy designed to cover the physical structure of a rented or let property, the owner’s legal liabilities, and the loss of rental income following an insured event. Unlike standard home insurance, which is designed for owner-occupiers, this cover is specifically built around the risks that come with tenants, lease agreements, and periods of unoccupancy. Under the Insurance Act 2015, you have a duty to make a fair presentation of the risk. In practice, this means accurately declaring tenant types — such as students, DSS tenants, or commercial tenants — as well as the property’s usage and any material facts. Failure to do so can invalidate your cover entirely.
Residential and Commercial: Tailoring the Cover
At Daines Kapp, we provide bespoke solutions for two distinct categories of property owner. The right structure for your policy depends on what you own and who occupies it. Commercial Property Owners — those who own warehouses, offices, retail units, or industrial premises — face occupier-driven risks. The trade or business carried on inside the building is a key underwriting factor, and changes of tenant must be declared promptly. Residential Landlords — including buy-to-let investors, HMO operators, and flat-block owners — face different challenges, such as tenant malicious damage, alternative accommodation obligations, and the specific regulatory requirements for Houses in Multiple Occupation.
What Does a Policy Cover?
While every property and portfolio is different, Daines Kapp structures cover around these core sections. We advise on each one to make sure you are neither underinsured nor paying for cover that does not match your exposure.
| Cover Section | What It Protects | Daines Kapp Advice |
|---|---|---|
| Buildings Insurance | Structure, roofs, walls, permanent fixtures, and communal areas against fire, flood, storm, and impact. | We ensure Day One Uplift or index-linking is included to guard against inflation during the rebuild period. |
| Loss of Rent | Replaces rental income if the property becomes uninhabitable following an insured event. | We advise on a realistic indemnity period — often 24 to 36 months rather than the 12-month default. |
| Property Owners’ Liability | Legal defence costs and damages if a third party is injured on your premises. | Essential under the Defective Premises Act 1972. We recommend a minimum limit of £5 million. |
| Employers’ Liability | Mandatory if you directly employ cleaners, gardeners, or concierge staff at the property. | Required by law if you have direct employees. We can arrange this alongside your property cover. |
| Terrorism Cover | Physical damage caused by acts of terrorism, which is often excluded from standard policies. | Particularly important for city-centre commercial properties. We source this via Pool Re and specialist markets. |
Key Considerations for Property Owners
The Average Clause and Declared Value
The single most common cause of reduced claim payouts is underinsurance. As a property owner, you must understand the difference between two figures. First, the Declared Value — the full cost to rebuild the property at the start of the policy, including debris removal and professional fees. Second, the Sum Insured — the Declared Value plus a Day One Uplift allowance for inflation during the policy period and the reconstruction itself. If your rebuild cost is £500,000 but you have only insured for £250,000, the insurer will apply the Average Clause and pay just 50% of any claim — including minor claims. Consequently, even a small escape of water claim could be significantly underpaid. We can arrange a desktop rebuild cost assessment through our RICS-accredited partners to make sure your declared value is accurate from day one.
Unoccupied Properties
If a property stands empty for more than 30 to 60 days, cover is typically restricted to FLEA perils — Fire, Lightning, Explosion, and Aircraft — only. You must notify us immediately when a tenant vacates so we can review and negotiate the applicable unoccupancy terms. In some cases, we can arrange extended full cover, provided you comply with inspection conditions such as weekly visits and draining the water system during winter months. Where full perils cover cannot be reinstated, we can explore placing cover with a specialist unoccupancy insurer — subject to unoccupancy conditions being adhered to, wider perils cover is often attainable.
Non-Standard Risks: Flat Roofs and Listed Buildings
Insurers treat flat roofs — particularly those covered in felt or bitumen — as a higher risk for water ingress. Policies commonly include a flat roof condition requiring inspection every two to five years by a qualified roofer. Similarly, Listed Buildings require specialist attention because heritage materials cost considerably more to restore and are frequently underinsured. If your portfolio includes either of these property types, we make sure the cover and the conditions are appropriate.
Why Choose Daines Kapp?
We act as your strategic partner throughout the life of your policy, not just at renewal. Our approach is built around three practical commitments. First, portfolio management — we can consolidate multiple properties onto a single policy with one renewal date, reducing both administration and the risk of a property slipping through the cracks. Second, claims advocacy — in the event of a major loss, our in-house claims team represents your interests and works to secure the best possible settlement. Third, risk management advice — we help you present your risk favourably to insurers, often securing better terms than those available on a standard commercial basis.
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Frequently Asked Questions About Property Owners Insurance
Does landlord insurance cover malicious damage by tenants?
Cover for malicious damage by tenants is often included in property owners policies, but not always — and where it is, it is frequently sub-limited, commonly to as little as £5,000 to £7,000 any one policy period. A standard ‘malicious damage’ peril typically applies only to persons not lawfully on the property; a specific extension is therefore required to cover deliberate damage by tenants. Where this extension is available, insurers typically impose conditions including thorough tenant reference checks, pre- and post-tenancy inventory checks with photographic evidence, and regular routine property inspections. If you require a higher sub-limit than your current policy provides, please raise this with your Daines Kapp adviser. For full detail, read our dedicated guide to malicious damage by tenants cover.
What is the difference between Loss of Rent and Alternative Accommodation cover?
Loss of Rent covers the rental income you lose when tenants stop paying because the property is uninhabitable following damage. Alternative Accommodation covers the cost of re-housing your tenants if you are contractually obliged to do so. Commercial policies generally focus on Loss of Rent, while residential policies often include both. The indemnity period — how long the cover lasts — is the critical variable to get right.
Do I need insurance if I rent to family members?
Yes. Even if you trust the tenant implicitly, you still need to protect the physical structure against fire, flood, and storm. Furthermore, if a family member is injured due to a defect in the property, you could still face a liability claim. Insurers must be informed of the relationship, as it can affect both the terms and the premium.
How do I calculate the correct rebuild cost for insurance?
Do not use the market sale price. Instead, use the Reinstatement Cost — the full cost of demolishing and rebuilding from scratch, including materials, labour, debris removal, and architect fees. The ABI Rebuild Calculator is a useful starting point; however, for larger or non-standard properties a professional RICS valuation is recommended. We have a partnership with Rebuild Cost Assessment — a RICS-registered organisation — who provide desktop rebuild valuations at a preferential rate for Daines Kapp clients. Their reports give you an accurate reinstatement figure and eliminate the risk of unintentional underinsurance.
Does property owners insurance cover subsidence?
Most standard property owners policies include subsidence cover, usually with a higher excess of around £1,000. However, if the property has a history of movement or sits in a high-risk area — such as former mining land or clay-heavy soil — subsidence may be excluded or require specialist terms. We have access to markets that consider properties with previous subsidence claims that standard insurers might decline.
Can I insure multiple properties on a single policy?
Yes, and in most cases it is the most efficient approach. A portfolio policy places all your properties under one renewal date with one set of terms and one insurer relationship. This simplifies administration considerably and often delivers a better overall premium than insuring each property individually. As your portfolio grows or changes, we update the schedule rather than arranging new standalone policies.
