Is a tenancy agreement always required for insurance?
Picture the scene: your property is ready for tenants, or perhaps they have already moved in, but the tenancy paperwork is not yet signed. Does your insurance still apply? The answer is not always simple. Some insurers may provide cover without a formal tenancy agreement, but most expect one to be in place. For them, the agreement is the backbone of the landlord–tenant relationship. It sets out responsibilities, clarifies occupancy, and removes uncertainty. Without it, you may find yourself on weaker ground if you ever need to make a claim.
Why do insurers care about tenancy agreements?
It is not just red tape. A tenancy agreement is a reference point. It confirms who is living in the property, what they pay, and the rules they have accepted. If there is damage, unpaid rent, or even a liability claim, the agreement helps establish the facts. Without it, insurers face guesswork and disputes become harder to resolve. That is why many policies treat a tenancy agreement as essential rather than optional.
When might cover exist without one?
Life is not always neat. There are times when a landlord may seek insurance without a signed agreement, for example:
- Family lets: Renting informally to relatives.
- New tenants: When people move in before paperwork is complete.
- Short-term lets: Arrangements through platforms where standard tenancy law does not apply.
- Inherited or vacant properties: Homes awaiting tenants but still needing protection.
Insurers take different approaches. Some decline outright, while others may accept but with restrictions or exclusions.
The risks of skipping paperwork
Skipping a tenancy agreement may feel easier at first, but it carries clear risks:
- Claim disputes: Insurers may refuse claims if tenancy status is unclear.
- Loss of rent cover: Usually valid only with a legally binding contract.
- Liability issues: Injury claims become harder to handle without written terms.
- Tenant disputes: Evictions, arrears, or damage claims are more difficult to prove.
You might still hold a policy, but without an agreement its strength is limited.
How do insurers view verbal agreements?
Verbal agreements are legally valid but hard to prove. An insurer faced with a claim may ask who was living there, on what terms, and at what cost. If nothing is written down, the answers depend on conflicting accounts. Some insurers respond with higher premiums or exclusions. Others refuse cover altogether.
What alternatives do landlords sometimes use?
When no formal tenancy agreement is in place, landlords may try to rely on other records, such as:
- Emails or letters confirming rent and dates
- Bank statements showing rent payments
- Utility bills in the tenant’s name
- Signed inventory lists
These can help build a picture, but they do not carry the same legal strength. At best, they support an application for cover. They do not replace a signed tenancy agreement.
What about short-term or holiday lets?
Platforms like Airbnb involve short stays where tenancy agreements rarely apply. Instead, hosts rely on booking terms and platform protections. Some insurers offer specialist cover for this type of let. These policies can work well but differ from standard landlord insurance, so it is important to check the details carefully.
Is there ever a reason to insure without an agreement?
In some cases, partial cover is better than none. If you inherit a property mid-tenancy with no paperwork, arranging buildings cover quickly is still wise. Or if relatives occupy the property informally, you may still want protection for the structure. In these situations, the policy is a stopgap rather than a long-term solution.
Tips for landlords in this situation
If you need insurance without a tenancy agreement, you can reduce risk by:
- Being upfront with insurers. Hiding the lack of paperwork may invalidate claims.
- Considering a simple interim agreement with key terms.
- Keeping thorough records of rent, occupancy, and communication.
- Treating it as a reminder to put proper contracts in place for the future.
How do mortgage lenders see it?
Lenders almost always expect tenancy agreements. Without them, they may judge the property as higher risk. That can affect remortgaging or even breach loan terms. The issue does not stop at insurance. It can also affect your wider finances.
Balancing flexibility with security
Some landlords prefer informal arrangements with friends or family. While this offers flexibility, it reduces protection. Insurers and courts work best with written evidence. In the long run, a signed agreement almost always outweighs the convenience of skipping it.
Final thoughts
So, is landlord insurance possible without a tenancy agreement? Sometimes, but it is rarely simple and usually comes with restrictions. Insurers prefer clarity, and tenancy agreements provide that. If you are without one, view it as temporary and move toward proper contracts. That way, your insurance and your rental business rest on firmer ground.