When it comes to understanding landlord insurance, we know there are a lot of terms out there that can be confusing.
We explain some of the key things you’ll hear when shopping around for landlord insurance and what they mean.
Accidental landlord
Someone who didn’t buy a property to rent it out but have found themselves in a position where they now need to.
Arrears
Late or unpaid rent that the tenant owes you, the landlord.
Buy to let
A property that you’ve bought (usually with a mortgage) with the intention of renting it out as a source of income.
Contents cover
This would apply to anything you provide within your rental property, like washing machines, beds or even carpets.
Some policies also include fixtures and fittings under contents cover, but this is different between insurers so it’s always best to check your policy book.
We’ve defined fixtures and fittings further down the page.
Energy performance certificate (EPC)
It’s a legal requirement to have this certificate if you rent out your property. Your EPC shows how energy efficient your property is and has a rating between A-G.
Properties rated F or G must meet Minimum Energy Efficiency Standards (MEES) – see below.
England landlord register
It’s not a nationwide requirement in England to register as a landlord as it is in Northern Ireland, Scotland and Wales.
But in some parts of England, it’s mandatory so always check if you need to register your property with your local authority.
Eviction
The forced removal of a tenant from your property.
Excess
Excess is the amount you need to pay towards an insurance claim. There are two types of excess: voluntary and compulsory.
Compulsory excess is the set amount of money you must pay when making a claim, which your insurer decides.
Voluntary excess is an amount you’ve chosen to pay on top of your compulsory excess.
The higher your voluntary excess is, the lower your monthly payments will be. When choosing your voluntary excess, make sure you can afford it if you need to make a claim.
Exclusions
These are things which are not covered by your insurance.
For instance, your landlord insurance won’t cover you for damage caused by gradual wear and tear.
Your exclusions will all be explained in your policy documents.
Fixed term tenancy
A contract between you and your tenant where the start and end dates are fixed.
Fixtures and fittings
These are permanent features in a house, including things like kitchen units, toilets, baths, built-in furniture and floor, wall or ceiling coverings.
Both our contents and buildings cover include protection for fixtures and fittings.
If you’re a leaseholder, you may need to check with the freeholder of your building to see if there’s any existing cover for fixtures and fittings in place.
Gas safety inspection
Inspections carried out every 10-12 months by a Gas Safe registered engineer. They inspect all gas appliances in your property to make sure they’re safe for your tenant.
They’ll then give you a certificate to prove you’ve passed. If you don’t pass, you’ll need to fix any issues they flag.
Gas safety certificate (CP12)
A certificate given once a successful gas safety inspection has been carried out. It will have full records of all previous checks too.
Gas safety record (GSR)
This is where the gas engineer that has done your gas safety check will record the results. This includes any certificates (CP12) and any gas safety inspection failures.
Guarantor
This is usually a friend or family member of your tenant who has agreed to accept responsibility and pay for any missed payments or damage your tenant causes if they can't pay themselves.
The Housing Health and Safety Rating System (HHSRS)
Your local authority completes this for your property. They assess any risks and hazards your property might have, like mould, fire risks, asbestos, etc.
House in Multiple Occupation (HMO)
This would mean at least three people rent your property but are not from the same family, so wouldn’t be considered as one household.
Landlord liability insurance
Insurance that covers you against injury or damage claims relating to your property. We call this Property Owner’s Liability. For more information see our landlord insurance page.
Letting agent
Someone that can help you find tenants for your property, manage the contracts for the rental agreement and in some instances, manages the property for you.
Loss of rental income cover
If your tenant has to move out because of something that’s covered under your insurance policy (for instance, a flood or fire), this could mean you lose money.
You might need to provide alternative accommodation for your tenant or stop charging rent while the property is being repaired.
Luckily, in this instance we cover you for loss of rent or alternative accommodation on all our landlord policies. This is so you don’t lose out on any income.
Malicious damage
A time where a tenant has intentionally caused damage to your property.
We don’t cover this as standard, but you can choose to add ‘Tenant Damage to Buildings’ to your policy to protect yourself against this.
Managing agent
A third party (this could be the letting agency) that manages the tenancy and tenants for you.
This means your tenant would deal directly with them instead of you, plus they’d handle any routine inspections and minor repairs.
Minimum Energy Efficiency Standards (MEES)
This applies to all rental properties in England and Wales with an energy efficiency rating of F or G.
Under government plans to lower CO2 emissions, it’s now illegal to let properties with an Energy Performance Certificate (EPC) rating below an 'E' rating.
This means to be able to legally let your property again, you have to meet the Minimum Energy Efficiency Standards to be able to improve your EPC rating.
Find out how to meet the energy efficiency standards here.
Northern Ireland landlord register
It’s a legal requirement to be registered as a landlord to rent out your property in Northern Ireland, so you must join this register.
Permitted payments
These are payments you can legally charge your tenant, for instance:
- a refundable deposit for tenancy
- payments to change the tenancy agreement
- a charge for late payment of rent or early termination of contract
Prescribed information
This relates to your tenants’ deposit under the Tenancy Deposit Protection scheme which is a legal obligation. You must let your tenant know where the deposit is held.
Property inventory
This inventory is a documented record for you and your tenant describing the property’s contents and the condition of those things.
This inventory should be taken at the start of a tenancy and agreed by both the tenant and the landlord.
Rent Smart Wales
It’s a legal requirement to register with Rent Smart Wales if you own a property that you rent out in Wales.
Renting Homes (Wales) Act 2016
This is designed to make renting in Wales more straightforward for both tenants and landlords.
It introduced two types of contracts – standard contracts for the private sector and secure contracts for the social sector.
It also includes improved rules around safety in rented homes, including things like electrical safety and fire alarms.
Read more information on the Renting Homes Act 2016.
Right to Rent
This only applies in England. It’s a government check to make sure your tenant is legally allowed to rent a residential property.
Read our guide on right to rent checks.
Scottish Landlord Register
To rent out your property in Scotland you must be registered as a landlord. This is a legal requirement.
Subletting
If your existing tenant rents out all or part of your property to another person, this person would be known as a ‘subtenant’.
In most cases your tenant may need your written permission before they can do this, depending on your contract with them.
Most insurers (including us) won’t cover subletting, and it could invalidate your insurance.
Tenancy Deposit Protection (TDP)
You must hold your tenant’s deposit within a government approved deposit scheme: Deposit Protection Service, MyDeposits or Tenancy Deposit Scheme.
Tenant
The person or people you rent your property to who are listed on the tenancy agreement.
Tenant referencing
It’s a legal requirement to check on the background and financial security of a prospective tenant.
This includes checking their previous tenancy, credit checks, affordability checks and Right to Rent checks.
We have a guide on tenant referencing for landlords to answer any questions.
Wear and tear
This is gradual damage or natural changes you may see in your property or its contents.
This might be due to everyday use by your tenant, but it could also apply to things like your roof, which naturally deteriorate over time.
Wear and tear isn’t covered by landlord insurance, so you need to try and look after your property all year round.
White goods
You might hear this term referring to any large electrical appliances within your property like the fridge, dishwasher or washing machine.
