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Landlord insurance exclusions
Landlord insurance usually does not cover wear and tear, gradual damage, long periods of unoccupancy, rent arrears, tenants' belongings, damp and mould, or legal costs, and malicious damage by tenants is often excluded unless you add it.
Part of: Landlord insurance
In short
Landlord insurance protects the building, your contents and your liability against sudden insured events. It usually leaves out wear and tear, poor maintenance, damp and mould, and your tenants' own belongings. Rent arrears, legal costs and malicious damage by tenants often need optional extras, and long voids, illegal use, undeclared HMOs and unauthorised occupants can all put cover at risk. Wordings vary, so read your policy and ask your broker about any gap.
These are the gaps we most often see in UK landlord insurance wordings. Policies differ, and some of these can be added for an extra premium, so use the table as a checklist for your own policy.
| Not covered (usually) | Example | Where cover usually comes from |
|---|---|---|
| Wear and tear | Carpets worn thin after several tenancies | Your maintenance budget |
| Gradual damage and poor maintenance | A slow leak under a shower tray rots the floor | Maintenance; sudden escape of water may be covered |
| Damage while empty beyond the permitted period | A burst pipe in a flat left empty between lets | Unoccupancy conditions or unoccupied property cover |
| Malicious damage by tenants (unless added) | A departing tenant smashes doors and fittings | Optional malicious damage by tenants cover |
| Rent arrears | A tenant stops paying for three months | Rent guarantee cover |
| Tenants' own belongings | A tenant's laptop is damaged in a flood | The tenant's contents insurance |
| Illegal use, including cannabis farms | Wiring bypassed and rooms damaged by a grow | Inspections; some policies offer limited cover |
| Unlicensed HMOs and undeclared use | A shared house let without a required licence | Correct licensing and disclosure |
| Damp and mould | Black mould from condensation in a bedroom | Maintenance and ventilation |
| Unauthorised occupants and subletting | A tenant sublets rooms without consent | Tenancy checks and telling your insurer |
| Legal costs (unless legal expenses added) | Solicitor's fees for a possession claim | Landlord legal expenses cover |
| The subsidence excess | Cracking from subsidence after a dry summer | Usually paid by you; read the excess |
Landlord insurance pays for sudden, insured events such as fire, storm or flood. The gradual ageing of carpets, kitchens, paintwork and fittings is a cost of running a let property, not an insured loss.
Scenario: after a long tenancy, a landlord finds the carpets worn, the worktops scratched and the walls marked. This is a matter for the deposit and the landlord's budget.
Most policies exclude damage that happens gradually or because the property was not maintained, such as rot, rust, a slowly failing roof or a long-term leak. A sudden escape of water is usually treated differently.
Scenario: sealant around a shower tray fails and water seeps into the floor for months. The rotten joists are likely to be excluded as gradual damage. See how insurers approach escape of water claims in let property.
Most policies set a limit on how many consecutive days the property can be unoccupied. After that, cover for risks such as escape of water, theft and malicious damage is often reduced or removed unless you meet conditions such as regular inspections and draining the water system.
Scenario: a flat stays empty for longer than planned during a refurbishment and a pipe bursts in a cold snap. If the unoccupancy limit had passed and the water was not drained, the claim may fail. Talk to your broker about unoccupied property insurance before the limit is reached.
Many standard landlord policies exclude deliberate damage by your own tenants or their guests, or offer it only as an optional extra with its own excess.
Scenario: a tenant leaves after a dispute and damages doors, kitchen units and a bathroom suite. The deposit may cover only part of it, and without the malicious damage by tenants extension the rest may fall on the landlord.
Buildings cover does not pay rent your tenant fails to pay. Some policies include loss of rent after an insured event, such as a fire that makes the property unfit to live in, but arrears are a separate risk.
Scenario: a tenant loses their job and stops paying. That is a rent guarantee matter. See our guide to rent protection and landlord legal expenses.
Landlord contents cover, where you have it, insures the furniture and fittings you supply. It does not cover your tenants' own belongings.
Scenario: a leak from the flat above damages a tenant's sofa and television. The tenant needs their own contents insurance; the landlord's policy deals with the building and the landlord's items.
Many policies exclude damage linked to illegal activity, or cover it only if the landlord has met conditions such as carrying out and recording regular inspections and referencing tenants. Cannabis cultivation is a common example. Our page on tenant use and your property insurance explains why disclosure of use matters.
Scenario: police find a cannabis grow in a rented house, with the electrics bypassed and walls and ceilings damaged by heat and humidity. If inspections were not carried out as the policy required, the claim may be refused.
A large house in multiple occupation in England, broadly one let to five or more people forming more than one household who share facilities, needs an HMO licence, and councils can require licences for smaller HMOs too (GOV.UK: HMO licence). Insurers usually price HMOs differently, and letting as an HMO without telling your insurer, or without a required licence, can put cover at risk.
Scenario: a landlord moves from one family to five sharers without a licence or telling the insurer. After a fire, the insurer may say the risk was not as described. See HMO landlord insurance.
Damp and mould usually develop over time, so they tend to fall under gradual damage, condensation or maintenance exclusions. Landlords must keep rented homes safe and free from health hazards (GOV.UK: landlord responsibilities), and a serious problem with damp is one of the matters that can make a home unfit for human habitation (GOV.UK: Homes (Fitness for Human Habitation) Act 2018).
Scenario: a tenant reports black mould in a bedroom caused by condensation and poor ventilation. Fixing it is a maintenance cost. Our landlord legal requirements checklist covers the wider duties.
Policies are based on who you told the insurer lives in the property. If a tenant sublets, takes in lodgers or lets the property on short stays without your consent, the change in occupancy can leave you outside cover.
Scenario: a tenant lists a room on a holiday-let website and a guest causes a fire. If the policy covered a single tenancy only, the insurer may challenge the claim. Check occupancy at inspections and tell your insurer about any change.
Standard landlord buildings and contents cover does not usually pay your legal costs for evicting a tenant, recovering arrears or defending a dispute. Those need landlord legal expenses cover, which often comes with conditions on referencing and paperwork.
Scenario: a landlord needs to go to court for possession. Without legal expenses cover, the solicitor's and court fees are theirs to pay. If you are reviewing tenancies and paperwork, see our Renters’ Rights Act landlord timeline.
Subsidence is often covered, but it usually carries a much higher excess than other claims, and properties with a subsidence history may have it excluded or restricted. Damage to walls, paths and gates is often excluded unless the main building is affected too.
Scenario: cracks appear in a rented semi after a dry summer. The claim is accepted, but the landlord pays the subsidence excess first. Read more on subsidence insurance.
Accidental damage by tenants is often an optional extra. Malicious damage by tenants is excluded from many standard policies unless you add it, and it may carry a separate excess.
Not usually. Rent arrears need rent guarantee cover. Many policies do cover loss of rent if an insured event, such as a fire, makes the property unfit to live in.
Usually not. Damp and mould tend to build up over time and fall under gradual damage, condensation or maintenance exclusions.
Most policies limit how long the property can be unoccupied. After that, some covers are reduced or removed unless you meet conditions such as inspections and draining the water system.
No. Landlord contents cover only insures the items you provide. Tenants need their own contents insurance.
Only if the insurer knows it is an HMO and has agreed to cover it. Tell your insurer about the number of occupants and households, and make sure you have any licence your council requires.
Send us your schedule and wording and a broker will tell you where the gaps are, with no obligation. Or call 0117 325 0027.
Ask a broker Start a commercial enquiryApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about common policy exclusions, not advice on your individual circumstances. Wordings differ, so always check your own policy. It does not guarantee that cover will be available or on what terms.
