What insurance you need as a landlord divides into three lists: what the law makes compulsory, what the mortgage or the lease makes compulsory, and what is a judgement call. Most guidance blurs the three together, which is why landlords end up either overinsured on sections they will never use or missing the one that would have mattered.
Compulsory by law: a short list
Employers liability insurance, from the moment anybody works for you rather than for themselves, with a penalty charged for every day without it. That is the whole statutory list. Everything else the law requires of a landlord is a duty rather than a policy: repair, gas safety, electrical safety, fire safety, deposit protection, right to rent checks.
Compulsory in practice: the mortgage and the lease
A buy to let mortgage will require the building insured for full reinstatement against listed perils with the lender's interest noted. A lease on a flat will require the freeholder to insure the structure, which means you should not. Between them, these two decide the buildings half of the question without you making any judgement at all.
Strongly advisable: liability and loss of rent
Property owners liability, because the exposure exists whether or not it is insured and the limit is cheap. Loss of rent, because the mortgage does not pause while the property is uninhabitable. Neither is compulsory and both are the sections landlords who have claimed say they were glad to have.
Judgement calls, in rough order of usefulness
Accidental damage by tenants, which is where most claims land. Landlord contents, sized to what you actually supplied. Legal expenses, which makes a possession action affordable. Rent guarantee, if six months of arrears would hurt. Home emergency, if you are not local. Malicious damage, which is rarer. Decide each on your own circumstances rather than taking the package as offered.
Questions people ask about what insurance do i need as a landlord
What insurance is legally required for a landlord?
Only employers liability, and only if you employ anybody. Everything else is required by a mortgage, a lease or good sense rather than by statute.
Do I need buildings insurance on a flat?
Usually not. The freeholder insures the structure under the lease and recovers the premium through the service charge.
Is rent guarantee essential?
No, it is a judgement call. It matters most where several months without rent while still paying a mortgage would be a serious problem.
What do landlords most often leave out?
Accidental damage by tenants, which is where the everyday claim lands, and an adequate liability limit, which is where the rare catastrophic claim lands.