How much is landlord insurance?

Finding the right landlord insurance for the best price can be a daunting task and many of us begin our online search by asking ‘How much is landlord insurance?’.

That’s a good place to start because the price of insurance varies depending on several different factors from location to property value.

When landlords compare landlord insurance for their rental properties, they will want to cover a range of issues, whether that is their rental income, rebuild costs, legal expenses or buildings insurance.

A UK landlord might be looking to get cover for multiple properties or purpose-built block or even rent guarantee insurance.

The aim is to save money when buying cover, even when paying monthly, and insurance companies will offer a range of quotes for meeting a landlord’s needs.

To help, the Alan Boswell insurance firm has run the figures to provide some answers to help with understanding the average cost of landlord insurance.

It estimates that two in five (41%) of landlords don’t have specialist landlord cover in place.

The insurance broker says this means more than one million landlords could be exposed to potentially large expenses should they need to pay for repairs to the building or the replacement of items.

Whilst there is no legal requirement to have landlord insurance, a home insurance policy will not cover you if anything were to happen to a rented property.

Cost of landlord insurance

The median average cost of landlord insurance in the UK in 2024 is £224.93, the Alan Boswell figures reveal.

This is for landlord insurance without an optional extra and takes into account all property types, locations and tenant types in the UK.

However, the price of landlord insurance varies across the country and there are several key factors that decide the cost.

Matthew Harwood, home and lifestyle expert at Confused.com home insurance, told Property118 that the price of landlord insurance in the UK varies but these are the key factors that influence the cost:

• Property value and type: More expensive or bigger properties typically have higher insurance costs. The type of property (for example, flat, detached house, or terraced house) also affects the price.
• Location: Properties in areas with higher crime rates or flood risks might have higher insurance costs.
• Tenant type: The kind of tenants you have (for example, students or professionals) can impact the cost. For instance, insurers might think students are expensive to insure due to student homes being more likely to be vacant outside of term time.
• Coverage level: Basic policies cover risks like fire, flood, and theft. Additional cover, like accidental damage, legal protection and alternative accommodation, can increase the cost.
• Claims history: A history of previous claims can lead to higher costs, as insurers may view the property as a higher risk.

He adds that the type of property also plays a big part in determining what a landlord’s insurance cost will be.

Median average cost of landlord insurance

According to the Alan Boswell Group, the median average cost of landlord insurance for studio flats is around £101.44 a year, compared to nearly £600 for blocks of converted flats.

The most common type of landlord insurance quote is for terraced housing with the average price being around £231 a year.

Another factor that affects the cost of landlord insurance is property size. Generally, properties with fewer bedrooms will generate cheaper landlord insurance quotes.

The median average price of landlord insurance for two and three-bedroom properties tends to range between £186 and £234 a year.

The average price for a one-bedroom property is around £140 a year.

Landlord insurance prices vary across the country

The price of landlord insurance varies across the UK, with some places costing as little as £68 while others cost up to more than £1,000.

The Alan Boswell data reveals the price of landlord insurance tends to be the highest in the South – particularly in London.

The highest landlord insurance prices can be found in Ealing where some landlords might have to fork out more than £1,400 for cover.

However, in places like Salford Bridge in Birmingham, landlord insurance costs as little as £68 a year. Outside of London, properties in Devon are one of the most expensive for landlord insurance costing £900 a year.

Students are the second most popular tenant type after the employed. However, renting to students is more expensive and costs almost £100 a year more than employed tenants.

The lowest average cost of landlord insurance is for those renting to the unemployed (£206.49).

You get what you paid for

Jason McClean, director of The Home Insurer, says it’s important to remember that sometimes the cheapest price doesn’t mean the best service.

He told Property118: “I think we try to solve the problems for people by market-leading prices. Saying that, there may be somebody out there that can get a cheaper quote but with us, you get what you pay for.

“If you go for the very lowest possible quote with a different insurance company, whenever you have a claim or you need to speak to that insurer, you probably won’t be speaking with the same person.

“Here at The Home Insurer, you can ring us up and speak to the same person who deals with your policy all year long.”

Jason says that the Home Insurer always tries to be honest with clients and manage expectations.

He adds: “What I say to clients is we check your policies every year so it’s not automatic that we increase the price every time.

“I know a lot of our policy owners this year will have received lower prices compared to last year as we shop around all our markets, and we want to try and give the best policy and price every year.”

Jason advises landlords that it’s always best to shop around before picking the right insurance that fits your needs. It’s not just about the cost but the quality of service you receive.

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

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