Survey reveals widespread underinsurance among UK landlords

More than a third of landlords either do not have dedicated landlord insurance or are unsure about whether their cover is sufficient, according to a survey carried out in April 2025. The findings have raised concerns that many property owners may be underestimating the risks they face in an increasingly complex rental market.

The poll revealed that around one in four landlords admitted to having no landlord-specific insurance, while a further 12 per cent said they were unsure if their current policy offered adequate protection. Even among those who had cover in place, nearly two-thirds said they had not reviewed or updated their policy within the past year.

The results highlight a wider trend of underinsurance at a time when landlords face rising costs, new legislative demands and increased exposure to risks such as property damage, legal disputes and income loss.

"There’s a widespread misconception among landlords that standard home insurance will cover all the risks of letting property — unfortunately, that’s rarely the case," said Chris Richards, founder and managing director of Simply Quote Insurance, which conducted the research.

"Our data shows a significant proportion of landlords either lack the right cover entirely or haven’t reviewed their policies for years. That can lead to very costly surprises if things go wrong."

Richards added that many landlords only discover the limitations of their insurance when they attempt to make a claim. Standard home insurance typically excludes cover for incidents involving tenants, leaving property owners potentially liable for major repair bills, legal fees or compensation costs.

"Landlord insurance is not just a box-ticking exercise. Without appropriate cover, landlords are gambling with their finances," Richards said.

Rising Pressures and Legal Reforms

The research comes at a pivotal moment for the private rental sector. The upcoming Renters’ Rights Bill is expected to introduce further responsibilities for landlords, while insurance providers are tightening terms and raising premiums, especially for properties in areas with flood risks or high tenant turnover.

Despite these challenges, many landlords appear unaware of the potential gaps in their protection. The survey found that almost a third of respondents did not feel confident that their insurance would cover key risks such as legal expenses, tenant damage or loss of rent.

Richards noted that some landlords, seeking to manage costs amid rising mortgage rates and regulatory changes, may be opting for the cheapest available cover without fully understanding the exclusions or limitations.

"It’s understandable that landlords want to keep costs down, but cutting corners on insurance can be a false economy. If an unforeseen event occurs, the financial impact can be devastating," he said.

He urged landlords to review their policies regularly and ensure their insurance reflects both the value of their property and the realities of modern letting.

"The private rental sector is evolving fast. Having the right insurance in place isn’t just a precaution — it’s essential protection for both landlords and their tenants," Richards added.