Landlord insurance is a property policy written for a building somebody else lives in. That single difference is what separates it from home insurance, and it changes almost everything downstream: who the occupier is, what damage is likely, what income is at risk, and who can bring a claim against the owner. It is a business policy, even when the business is one flat.
What makes it different from home insurance
A home policy assumes the owner lives there and looks after the place. A landlord policy assumes somebody else does, that the owner may visit rarely, that the property will sometimes be empty between tenancies, and that rent rather than shelter is what is at stake. Home policies exclude letting, which is why the switch is necessary rather than optional.
The sections it contains
Buildings cover on a rebuild figure. Property owners liability for injury or damage arising from the building. Loss of rent while the property is uninhabitable after an insured event. Landlord contents for what you supplied. Then options: accidental and malicious damage by tenants, rent guarantee, legal expenses, home emergency.
What it does not cover
The tenant's own belongings, which are theirs to insure. Wear, tear and maintenance, including a boiler that has come to the end of its life. A void between tenancies, which produces no rent and no claim. General bad luck with a tenant who simply leaves. And the property while it is being substantially refurbished, unless that was agreed separately.
What a first time landlord should actually do
Get the rebuild figure from a proper source. Describe the tenant type accurately. Buy liability above the default. Take accidental damage. Read the unoccupancy allowance and note the number. Then decide rent guarantee and legal expenses on whether six months of arrears would hurt. That is the whole decision.
Questions people ask about what is landlord insurance
What is the difference between landlord and home insurance?
Home insurance assumes the owner lives there. Landlord insurance assumes somebody else does, and adds loss of rent, property owners liability and tenant damage options while accepting longer empty periods.
Is landlord insurance required by law?
No, though a buy to let mortgage almost always requires buildings cover and employers liability is compulsory if you employ anybody.
Does it cover my tenant's belongings?
No. The tenant insures their own contents, and it is worth telling them so in writing at the start of the tenancy.
What should a first time landlord prioritise?
A correct rebuild figure, an accurate description of the letting, a liability limit above the default, and accidental damage cover.