Beyond the mortgage: Why advising landlords on property insurance is essential

For your landlord clients, the property is not just a home, it’s a business asset. Ensuring that asset is protected is just as critical as securing the right financing. That’s where property insurance advice becomes indispensable.

In today’s rental market, landlords face a range of risks, from rent arrears to malicious damage that standard buildings insurance may not cover. Advisers who proactively guide clients toward comprehensive landlord insurance solutions not only add value but also strengthen long-term relationships.

By incorporating insurance guidance into your advisory process, you shift from being a transactional broker to a strategic partner. Consider:

• Reviewing insurance needs during remortgage or portfolio expansion
• Educating clients on policy exclusions and claims processes

Landlords often assume that standard property insurance will cover all eventualities, but there are several common pitfalls that can leave them financially exposed. As a mortgage adviser, helping your landlord clients avoid these traps can significantly enhance your value proposition.

10 Common insurance pitfalls for landlords

1. Relying on standard home insurance

Many landlords mistakenly believe that a regular homeowner’s policy is sufficient. However, standard policies typically exclude cover for rental activities, meaning claims could be denied if the property is let out.

2. Lack of rent guarantee insurance

Without rent guarantee cover, landlords risk losing income if tenants default. This is especially critical for landlords who rely on rental income to meet mortgage repayments or other financial obligations.

3. No malicious damage cover

Standard policies may cover accidental damage, but not malicious damage caused by tenants or their guests. This can lead to costly repairs that aren’t reimbursed.

4. Underinsurance

Landlords sometimes underestimate the rebuild cost of their property or the value of contents provided in furnished lets. This can result in partial payouts during claims due to the ‘average clause’ in insurance policies.

5. Ignoring legal expenses cover

Evictions, disputes over deposits, or tenant damage can lead to legal battles. Without legal expenses cover, landlords may face thousands in solicitor fees and court costs.

6. Missing home emergency cover

Unexpected emergencies like a burst pipe or boiler breakdown can disrupt tenancy and lead to costly repairs. Home emergency cover typically includes:

• 24/7 access to approved tradespeople
• Emergency repairs for plumbing, heating, and electrics
• Temporary accommodation costs if the property becomes uninhabitable

This cover ensures landlords can respond quickly to urgent issues, maintaining tenant satisfaction and protecting rental income.

7. Not disclosing key information

Failing to inform the insurer about:

• Multiple tenants or HMOs (houses in multiple occupation)
• Long void periods
• Property modifications or renovations
  can invalidate the policy.

8. Assuming contents insurance isn’t needed

Even in unfurnished properties, landlords may own carpets, curtains, white goods, or fixtures that aren’t covered under buildings insurance. Contents cover ensures these are protected. In addition, landlords who are renting out flats and don’t require building insurance can have a contents only policies and then benefit from other valuable additional bolt on covers such as rent guarantee, home emergency cover and legal protection.

9. Not reviewing policies regularly

Landlords who don’t review their insurance annually may miss out on better cover or fail to update the policy to reflect changes in tenancy, property value, or legislation.

10. Not considering portfolio policies

Landlords who have several properties individually insured, could benefit from merging them into a Portfolio policy. This can save time and money by having one overall premium and one common renewal date for all of their properties.

Landlord insurance isn’t just a checkbox, it’s a cornerstone of property investment strategy. Mortgage advisers who champion comprehensive cover help clients safeguard their income and peace of mind.

At First2Ptrotect we are experts in ensuring landlord clients are correctly protected and have a specialist team available to help with portfolio cases and discuss the associated product add-ons, including rent guarantee cover which is available as a stand-alone policy if required.

For more information contact the Business development team on 01392 848856 email: businessdevelopment@first2protect.co.uk or registering via the website: Work with Us - First2Protect