Why your landlord boiler cover might be worthless
- RebuildCostASSESSMENT.com
- Oct 13
- 5 min read
Updated: Nov 13
Landlord insurance add-ons: are they really protecting you?
When you take out landlord home insurance cover, you want to protect both your income and your property. Many landlords looking for total landlord legal & rent protection insurance add extras. These include rent guarantee, landlord home emergency cover, or boiler breakdown insurance. All which help with the most common problems, such as broken boilers, burst pipes, or tenants who stop paying rent.
But what if, even with all these add-ons, your claim still didn’t pay out in full?
Every property-related policy depends on one essential factor: the accuracy of your buildings insurance. If your rebuild cost is too low, your insurer can apply the average clause, reducing any property-damage payout in line with how underinsured you are.
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 helps when a tenant stops paying rent. It keeps your income steady while you deal with the issue. Many policies also give you access to legal advice and support. This can help if you need to enforce your tenancy agreement or regain possession of your property.
Legal expense cover helps with the cost of court proceedings, eviction notices, or other legal disputes. Together, these two types of protection help you stay in control if things go wrong.
Accidental damage cover protects you from sudden and unexpected problems. This might include a cracked sink, a broken window, or a hole in a wall. It covers the cost of repair or replacement, but it won’t cover general wear and tear, like a leaking tap or faded paint. Intentional tenant damage may need a different policy, so always check your wording carefully.
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.
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.
Landlord home emergency cover gives you 24-hour help when something goes wrong. It covers urgent issues such as a broken boiler, burst pipe, loss of heating, or electrical fault. The aim is to fix the problem quickly so the property stays safe and livable until full repairs can be arranged.
Remember, home emergency cover is not the same as a routine boiler service or safety check. Regular servicing is your job as a landlord and a legal requirement under most tenancy agreements. Emergency cover handles sudden breakdowns, not ongoing maintenance. If a boiler fails because it has not been serviced, the insurer may refuse the 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. This government-backed programme helps insurers offer more affordable flood insurance.
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. The average clause appears in most property policies and is applied whenever a property is underinsured. Recent data suggests that around 70% of UK properties fall into this category, which means many landlords could receive less than they expect after a claim.
The main reason is confusion between market value and rebuild cost. Market value is what a property might sell for, including the land. Rebuild cost is the price of demolishing and rebuilding it to the same standard, covering materials, labour, fees, and building regulations. 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 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.
Secure your investment with a rebuild cost assessment
The right landlord insurance add-ons are important, but they only work if your rebuild cost is correct.
A rebuild cost assessment gives you peace of mind. It confirms that your property is insured for the right amount, so every part of your policy performs when you need it most.
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.
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