Landlord insurance add-ons explained: boiler, rent and emergency cover
Updated: Sep 24
Landlord insurance add-ons: are they really protecting you?
Landlord insurance can include add-ons for unpaid rent, legal costs, accidental damage and urgent repairs. Each is designed for a different risk. Understanding what each covers can help landlords choose protection that fits their property and tenancy.
Rebuild cost is most relevant to buildings cover. If the sum insured is too low and the policy includes an average clause, a buildings claim may be reduced.
Rent guarantee and legal expenses: protecting your income
Your rental property is a source of income. When that income stops, the impact can be serious. That’s why rent guarantee and legal expenses cover are two of the most useful add-ons for landlords.
Rent guarantee Insurance may help replace unpaid rent when a tenant falls into arrears. Legal expenses cover may contribute to specified legal costs if you need to take action over a tenancy.
Accidental damage cover can help with sudden, unintended damage, such as a cracked sink or broken window. It does not cover general wear and tear. Deliberate damage is a separate risk and may need different cover.
Policies such as landlord boiler cover, landlord plumbing and drainage cover, or home emergency protection are different. These relate to the property itself. If your building's insurance is based on the wrong rebuild cost, your payout could be reduced under the average clause. That’s why it’s important to get your property valuation right before you rely on these add-ons.
Cover, limits and exclusions vary between policies, so check the wording for the details.
Boiler, plumbing and home emergency cover explained
A safe, well-maintained property protects your tenants and your investment. Many landlords add landlord boiler cover, landlord plumbing and drainage cover, or landlord emergency cover to their insurance. These policies help deal with sudden problems before they cause serious damage.
Home emergency cover can help arrange urgent assistance for problems such as a boiler breakdown, burst pipe or loss of heating. It is intended for sudden emergencies, not routine servicing or ongoing maintenance.
Landlords must arrange annual gas safety checks for gas appliances and flues they own and provide. This is separate from routine servicing, which should follow manufacturer guidance and any relevant policy conditions. A failure to meet a policy maintenance condition could affect a claim.
Some policies also include cover for damage to gas appliances, heating systems, or plumbing caused by an unexpected failure. Always read the small print so you know whether the policy covers the cost of repairing or replacing.
Landlords should also think about larger risks, such as fire or flood. Your building and contents insurance normally covers these, but check that your policy is up to date.
If your property is in a flood-risk area, see if it qualifies for the Flood Re scheme. Flood Re is a joint initiative between the Government and insurers. Some buy-to-let properties may be eligible if they meet the scheme criteria.
Why landlord add-ons can fail without the right rebuild cost
Many landlords think that once they’ve added cover for emergencies or damage, their property is fully protected. But a hidden risk can still reduce a payout: underinsurance.
This happens when the sum insured on your buildings insurance is lower than the true rebuild cost of your property. When this occurs, the insurer can apply the average clause, which reduces the payout by the same percentage that the property is underinsured.
For example:
A landlord has a boiler breakdown that causes a small fire and water damage worth £20,000. Even with full boiler cover, if the property is insured for only half of its real rebuild cost, the insurer could pay just £10,000.
This problem is more common than many landlords realise. Depending on the policy, the average clause can be applied when a property is underinsured. Recent data suggests that around 67% of UK properties fall into this category, which means many landlords could receive less than they expect after a claim.
One of the main reasons is confusion between market value and rebuild cost. Market value is what a property might sell for, including the land. Rebuild cost estimates the cost of reinstating the building, including relevant demolition, materials, labour and professional fees. The two figures serve different purposes.
Free online calculators often underestimate this figure, creating a gap that leads to shortfalls in insurance payouts.
The solution: accurate rebuild costs
The best way to make sure your insurance pays out when it matters is to start with the right rebuild cost. This figure sets the sum insured on your policy, so it needs to be correct.
A Rebuild Cost Assessment gives you a verified rebuild figure that many insurers recognise and trust. Each report uses reliable data and detailed property measurements to show what it would really cost to rebuild your property if the worst happened.
At RebuildCostASSESSMENT.com, we’re ‘Regulated by RICS’ (the Royal Institution of Chartered Surveyors). This means every assessment follows strict industry standards to make sure your figures are fair and accurate.
When your rebuild cost is correct, your landlord insurance can work as it should. That includes boiler and emergency cover, rent guarantee, and accidental damage protection. Getting the right figure protects your property, your income, and your tenants.
Most landlords review their rebuild cost every few years, or sooner if they renovate or extend their property.
If you’d like an independent review of your property’s rebuild value, you can request a Rebuild Cost Assessment today.
Not quite ready to take that step? Find out how we help landlords protect their properties with accurate rebuild cost assessments.
Secure your investment with a rebuild cost assessment
Landlord insurance add-ons can help address different risks. A rebuild cost assessment can help inform the buildings sum insured, particularly after significant changes to a property.
With an accurate rebuild figure, you can avoid underinsurance and protect your property, income, and tenants with confidence.
For long-term security, review your rebuild cost at least every three years or sooner if you renovate, extend, or upgrade your property.
Other helpful resources
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