Why do exclusions matter so much?
Buying landlord insurance can feel like a simple task: pay the premium, file the paperwork, and assume you’re protected. But the fine print often tells a different story. Every policy carries exclusions, and ignoring them can leave you facing costs you thought were covered. Understanding what’s not included is just as important as knowing what is.
Think of exclusions as small holes in your safety net. You may not notice them until you’re unlucky enough to fall through. The trick is spotting them before that happens.
Wear and tear: the silent gap in cover
Properties naturally age. Tiles slip, paint fades, boilers wear out. These issues fall under “wear and tear” and are excluded from almost every policy. Insurers expect landlords to maintain properties proactively. That means servicing boilers, clearing gutters, and repairing worn fittings. Insurance responds to sudden damage, not gradual decline.
Unoccupied properties: the ticking clock
Empty homes are vulnerable to vandalism, burglary, and hidden leaks. Most policies allow short voids but tighten the rules after 30 or 60 days. Beyond that, you often need specialist unoccupied property cover. Many landlords only discover this when a claim is rejected during a long changeover or refurbishment.
Tenant belongings: not your responsibility
Landlord contents insurance protects what you provide; furniture, appliances, flooring. It does not extend to tenants’ possessions. If a tenant’s laptop or jewellery is stolen, that falls under their own policy. Your responsibility stops at what belongs to you.
Malicious damage: a grey area
Not all tenant damage is treated equally. Accidental damage is often an optional add-on. Malicious damage, where a tenant deliberately causes harm, is excluded from many standard policies. Even when available, it usually comes with conditions such as proper tenant referencing. Without meeting them, a claim can fail.
Acts of neglect: when insurers walk away
If damage arises from poor upkeep; like a leaking roof left for months or faulty wiring ignored; insurers may refuse to pay. They expect landlords to keep properties safe and habitable. Routine inspections and timely repairs are essential, not optional.
Pest infestations: an unpleasant surprise
Rats, bedbugs, and moths are rarely covered. Insurers see infestations as maintenance issues, not insurable risks. The responsibility falls squarely on the landlord, even when an outbreak appears suddenly.
Gradual damage versus sudden events
Insurance usually covers sudden, unexpected events: a storm tearing off tiles or a burst pipe flooding a room. Gradual issues such as damp, mould, or long-term subsidence are normally excluded. The distinction is not always clear, which is why disputes sometimes arise. The definitions in your policy are worth checking closely.
Alternative accommodation: limits apply
Policies often cover rehousing tenants if the property becomes uninhabitable, but limits apply. Payouts are capped and only valid if the damage comes from an insured event. If the property is unsafe because of neglect, the support stops there.
Natural disasters: not always covered
Fire and flood are standard, but events like earthquakes, coastal erosion, or ground heave are often excluded or require specialist cover. These risks may be rare in the UK, but properties in certain locations; such as floodplains or eroding coastlines; can face gaps in protection without additional policies.
Illegal activity: exclusions with consequences
If tenants use a property for illegal activity, such as drug production or unauthorised subletting, insurers usually exclude related damage. Even if the landlord had no knowledge, claims can be denied. Regular checks and thorough tenant vetting are the best defence here.
Outdated security measures
Policies often include conditions about locks, alarms, and fire safety equipment. If these don’t meet the required standard, or if you fail to maintain them, claims may be declined. Small details such as smoke detectors or door locks can make the difference between acceptance and rejection.
The emotional impact of exclusions
There is a financial hit when claims are denied, but also an emotional one. Paying premiums for years only to be refused cover can feel like a betrayal. Anger, frustration, and anxiety about footing the bill yourself add to the strain. Knowing the exclusions in advance takes away the element of shock.
How to reduce the risk of surprises
- Read the full policy wording: Summaries are useful but don’t tell the whole story.
- Ask questions upfront: Get clarification in writing if anything is unclear.
- Stay on top of maintenance: Routine checks reduce the chance of rejection for neglect.
- Set expectations with tenants: Make clear what is and isn’t covered.
- Look at add-ons: If exclusions worry you, ask about optional extras to plug the gaps.
Closing note: exclusions define, they don’t diminish
Exclusions can make landlord insurance feel less reassuring, but they don’t make it worthless. They mark the boundary between what you and the insurer each take responsibility for. Once you know where that line sits, you can fill the gaps through maintenance, tenant checks, or extra cover. That clarity helps avoid nasty surprises, keeps expectations realistic, and leaves you in control of how your property is protected.