What is landlords liability insurance?

Landlords liability insurance – also known as property owners’ liability insurance – covers you when you have to pay compensation to any third party for accidental injury to them, or damage to their property because of your ownership of, or legal responsibility for, the insured property. 

As a landlord, you have a legal duty to ensure your property is safe and well-maintained. For example, the Defective Premises Act 1972 requires landlords to ensure their properties are safe and free from defects that could cause injury or damage. If someone trips on a poorly maintained path or a leak damages a tenant’s electronics, you could be held liable.

Responsible landlords pride themselves on providing quality housing, but mishaps can happen. Landlords liability insurance can protect you against significant financial loss if an unexpected incident occurs.

 

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What does landlords liability insurance cover?

Landlords liability insurance typically covers: 

  • Bodily injury – compensation to any third-party (excluding employees) for 
  • Property damage – costs associated with damage to a third party’s belongings caused by your property.
  • Legal fees – expenses if you are subject to an official examination, inquiry or proceeding, including criminal proceeding, for example prosecution under any health and safety regulation.

Bodily injury

Landlords liability insurance covers you against compensation to any third-party, excluding employees, for accidental injury to them or damage to their property, which occurs during the period of insurance and because of your ownership of, or legal responsibility for, the insured property. For example, if a third party is struck by a falling roof tile or trips on a loose carpet, landlords liability insurance can cover any legal costs and compensation if you are found negligent. If a tenant is badly injured, this could involve things like emergency care, hospital fees, and ongoing medical care. Hiscox landlords insurance includes up to £5 million bodily injury cover as standard.

Property damage

Landlords liability insurance also covers damage to others’ belongings due to issues on or associated with your property. For instance, if a pipe bursts in your property, a tenant could claim compensation for any water-damaged items. Landlords liability insurance can cover the cost of replacing or repairing those items, as well as any legal fees associated with the claim. For example, Hiscox property owners’ liability insurance offers up to £5 million for damage to belongings as standard.

If a claim is made against you by a third party due to issues with your property, landlords liability insurance can cover your legal fees. This can include legal representation costs such as solicitor fees, court fees, and any other legal expenses incurred in defending against claims and legal proceedings. Hiscox landlords insurance covers legal representation costs of up to £250,000 and documentation as standard. Our landlords customers also receive free, unlimited telephone legal advice, 24 hours a day, 365 days a year1. 

You should note that Hiscox landlords liability insurance does not include as standard cover for legal costs and expenses related to problems such as rent recovery and squatter evictions. For this, you will need to select the optional add-on legal protection cover

Do I need landlords liability insurance?

Landlords liability insurance is not legally required. However, not having sufficient coverage can lead to costly claims. Landlords liability insurance can provide reassurance and financial security against the risks of renting out a property.

Accidents happen, and if someone is injured or their belongings are damaged due to an issue with your property, you could be held liable. Landlords liability insurance typically covers both legal and compensation costs in such cases.

Landlords liability insurance is included as standard with your Hiscox landlords insurance policy.

  1. Advice on the laws of England and Wales can be provided 24 hours a day, 365 days a year. Beyond this jurisdiction, or for very specialist legal matters, we will refer you to one of our specialist advisers. Specialist advice is provided 9am-5pm, Monday to Friday, excluding public and bank holidays.

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Related guides & FAQs

What are a landlord’s repair obligations?

Landlords and tenants share the responsibility of maintaining a rental property, but landlords are primarily obliged to ensure the property remains safe and habitable. Learn more about a landlords repair obligations in our guide.

What is accidental damage in buildings insurance?

Accidental damage buildings insurance can cover the cost of repairing or replacing the physical structure and fixtures of your property when it’s damaged unintentionally or unexpectedly - learn more in our FAQ guide.

What is malicious damage, and how can landlords protect their property?

You cannot predict malicious damage. However, understanding what it is, how to potentially prevent it, and who is responsible for covering the costs associated with it can help you protect your property. Read more in our FAQ guide.

Disclaimer:

Our FAQ pages provide general information and background around the topic covered. FAQ pages are reviewed and monitored periodically by our insurance experts. But the content is not intended to be read as advice and any material is for general information purposes only. If you would like advice for any content, please seek professional assistance.

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