Renting out a property comes with more risk than most landlords expect, from accidental damage and unpaid rent to a tenant injuring themselves on your property. Below, we’re answering some of the most common landlord insurance questions, including what it covers, whether you’re legally required to have it, and how it differs from a standard home insurance policy.
Read on to learn more.
Why landlords need more than a standard home insurance policy
Landlord insurance is a policy designed specifically for property owners who rent out a home or apartment as a rental property or investment property, and it protects landlords from rental risks rather than covering a home they live in themselves. It typically combines buildings cover, contents insurance for anything you provide in a furnished property such as carpets, furniture, appliances, and other belongings or possessions supplied for tenants, and public liability cover if a landlord is liable because a tenant or visitor suffers injury on the property.
Because a rented property carries different risks to an owner-occupied one, a standard home insurance policy usually won’t cover you once you start letting and can even be invalidated if the insurer isn’t told the property is tenanted.
Is landlord insurance a legal requirement, or just good practice?
Landlord insurance itself isn’t required by law in Ireland. However, if you have a mortgage on the property, lenders will almost always require adequate buildings cover as a condition of the loan, and this is often needed for a buy to let mortgage. This is different from ordinary house insurance or landlord home insurance arranged for an owner-occupied home. Public liability cover isn’t compulsory either, but with tenants and their visitors regularly on site, it’s one of the most important protections a landlord can have.
What’s included in a landlord insurance policy
Cover varies by insurer and policy, but a typical landlord insurance policy in Ireland can include:
- Buildings cover – for damage to the structure, including walls and permanent fixtures, caused by fire, storm, flood, or escape of water.
- Contents cover – contents insurance for furniture, appliances, and other items you supply in furnished rentals, with cover that can include theft and other damage, subject to contents sums insured.
- Public liability cover – landlord liability insurance can help provide protection if a tenant or visitor is injured, or their property is damaged, with claims covered up to €3,000,000.
- Loss of rent – applies where an insured peril makes the property uninhabitable and provides financial protection for lost rental income.
- Malicious damage by tenants – cover for deliberate damage caused by a tenant, which most standard home policies exclude.
- Alternative accommodation costs – in some cases, for tenants who need to be rehoused temporarily.
- Some policies also cover fire brigade charges up to €3,000 and may include optional legal expenses or home emergency assistance with 24/7 emergency repair services.
Please note that benefits vary by insurer and policy, so check the policy details, details of what’s included, sums, excess, exclusions such as normal wear and tear, and other important cover limits before you buy.
Will your policy pay out if a tenant stops paying rent?
Many landlord insurance policies include loss of rent cover, but it isn’t universal, and where it’s available, it’s usually tied to a specific insured event, for example, if the property is damaged by fire or flood and becomes temporarily unliveable. Cover is subject to the policy terms and the trigger event. It’s not designed to cover a tenant simply falling behind on payments or a property sitting vacant between lets. If protecting your rental income is a priority, review the policy details for the payout period, cover limits, and any excess that applies.
How landlord and home insurance are priced and underwritten differently
Standard home insurance is priced and underwritten on the basis that the owner lives in the property. The cost of cover depends on factors such as the property’s age, value, and location, because rental properties are underwritten differently from standard home insurance. Landlord insurance accounts for the added risks of letting to a third party, including a higher likelihood of accidental or malicious damage, extended void periods, and liability exposure from tenants and their visitors.
Most home insurers will not pay out on a claim if they later discover the property was tenanted and they weren’t told, so it’s important to have the right policy in place from day one. When requesting landlord insurance quotes, you’ll usually need property details and tenant information, and comparing options can help you see differences in cover as well as price.
Why choose BBi Ireland for landlord insurance?
At BBi Ireland, we arrange landlord insurance to help protect a single property or a wider portfolio, helping safeguard your rental income, liability exposure, and your investment across different types of lets. Our experience keeps the application process straightforward, and our team will help you understand the key aspects of cover and gather the right details for a quote.
We work with a range of regulated insurers, giving you options and choices tailored to your circumstances, whether you own a single property or manage a larger portfolio alongside other commercial property, with cover shaped around different areas of risk and subject to insurer underwriting.
We pride ourselves on offering a range of options through experienced insurers approved by the Central Bank of Ireland, backed by our in-house claims team when you need it most.
Get a landlord insurance quote
If you’re renting out a property in Ireland and want to make sure you’re properly protected, get in touch with BBi Ireland to request a free online quote for landlord insurance in Ireland. You can save time by getting an online quote and reviewing cover options before you buy, with any quotation subject to insurer terms and a minimum premium where applicable.
Contact us to learn more about how landlord insurance can help protect your business.
