Why home insurance isn’t enough
Standard home insurance assumes the policyholder lives in the property. Letting it out changes the risk: different people, longer empty periods, and legal duties as a landlord. If you let a property on a home policy without telling the insurer, claims can be refused. That includes “accidental landlords” renting out a home they couldn’t sell, and people letting a room to a lodger (tell your home insurer; some will adapt your policy).
Loss of rent vs rent guarantee
Loss of rent pays rent you lose when the property can’t be lived in after an insured event such as a fire or flood. Rent guarantee insurance is different: it covers rent arrears when a tenant doesn’t pay, usually only if the tenant passed referencing before the tenancy started. Read the conditions carefully, including how quickly you must report arrears.
Landlords in the US
US landlords usually insure single-family rentals on a dwelling fire policy such as the DP-3 (open-perils cover for the dwelling) or a landlord package. These typically include fair rental value (loss of rent) and can add premises liability. Tenants are encouraged to buy their own renters insurance for their belongings.
Portfolios, HMOs and holiday lets
- Portfolio landlords can often insure several properties on one policy with a single renewal date.
- HMOs (houses in multiple occupation) need insurers who accept them; licensing conditions may also apply.
- Short-term and holiday lets need specialist cover; standard landlord policies usually assume longer tenancies.
- Commercial property lets (shops, offices) need commercial property insurance.
Last updated: 15 October 2026
