Loss of rent insurance

Loss of rent insurance can protect landlords from losing income if their rental property becomes uninhabitable due to an insured event, such as fire, flood, or theft. 

This covers the income lost while the property is repaired and restored to habitable condition, ensuring landlords receive revenue despite disruptions. 

For example, if your property suffers significant water damage through a leaking roof in a storm, loss of rent insurance could cover your rental income for a period while repairs take place. 

This type of cover can be particularly valuable for landlords who rely on rental income to cover mortgage payments and professional landlords whose property is their primary source of revenue.

Loss of rent insurance offers two types of protection: 

• It could cover the tenant’s relocation to alternative accommodation while repairs take place. 
• The tenant can choose to end the tenancy agreement. In this case, the insurance covers the landlord’s loss of rental income until repairs are completed (up to 12 months).

Loss of rent insurance is automatically added as standard with Hiscox landlord insurance. 

Hiscox provides loss of rent cover for up to 35 % of the Building Sum Insured (BSI). 

For example, if your Building Sum Insured is £100,000, you would have up to £35,000 (35%) of cover. 

If you charge £15,000 rent annually, and flood damage renders your property uninhabitable for 12 months while repairs take place, Hiscox could cover the entire £15,000 as it is well within your £70,000 limit.

Hiscox loss of rent insurance does not cover the following: 

• Non-payment of rent – if a tenant fails or refuses to pay rent while the property is habitable 
• Lease breaks – if a tenant breaks the lease, moving out early 
• Longer than a year – properties that are uninhabitable for more than 12 months 
• Communicable diseases – except in the case of specified diseases, including any fear or threat of such incidents or any action taken in controlling, preventing, suppressing, or responding to such incident 
• Damage caused by any deliberate or malicious act by tenants – unless you ensure that a thorough inspection of the insured premises is carried out and recorded at least every six months (or as frequently as the tenancy agreement allows). 

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information.