Landlord Insurance Exclusions: What Your Policy May Not Cover

A burst pipe in an empty flat, a tenant who stops paying rent, or a slow leak behind a kitchen unit can all create expensive problems. Yet these are among the top landlord insurance exclusions, or restrictions, that catch owners out when they assume their policy will respond. Landlord insurance is not a single, standard product, and the terms can differ significantly between insurers, property types and tenancy arrangements.

Reading the exclusions, conditions and endorsements before you accept a quote matters just as much as checking the price and excess. Knowing where cover typically stops helps you choose a policy that fits the property and the tenancy, rather than the lowest headline figure.

What is an exclusion in landlord insurance?

An exclusion is an event, loss or cost that a policy does not insure. Some are absolute, meaning the insurer will not pay in those circumstances. Others apply only where you have failed to meet a condition, such as inspecting an unoccupied property at stated intervals.

You will usually find exclusions in the policy wording, alongside the definitions and conditions. They should not be treated as small print to skim after buying. A low-priced quote can carry a higher excess, narrower protection or more demanding requirements, which may suit one landlord perfectly and leave another exposed. It is also worth understanding how a landlord policy differs from ordinary home cover, which our guide on landlord insurance versus home insurance explains in full.

Top landlord insurance exclusions to look for

Unoccupied properties beyond the permitted period

Many policies restrict protection when a property has been empty for a set number of days, often 30, 60 or 90 days, though the exact period varies. Once that limit passes, certain sections may reduce or stop, particularly escape of water, theft, malicious damage and accidental damage. This can matter between tenancies, during major refurbishment, or when a sale takes longer than expected. Some insurers offer unoccupied property arrangements, but they may require regular inspections, drained water systems, secure locks or other precautions. Do not assume a property is occupied simply because furniture remains inside.

Wear and tear, poor maintenance and gradual damage

Insurance is designed for sudden, unforeseen events rather than the cost of keeping a building in good order. Deteriorated sealant, rotting timber, an ageing roof and a boiler that fails through lack of maintenance will commonly fall outside the scope of a claim. Gradual water damage is a frequent area of dispute. A pipe that suddenly bursts may be insured, subject to the terms, while damage from a leak that has developed unnoticed over months may not be, particularly where there were visible warning signs. Keep records of repairs, inspections and contractor visits, especially where a defect has already been identified.

Damage caused by tenants

Landlords often expect all tenant-related damage to be included. In practice, accidental damage, malicious damage and deliberate acts may be treated differently, and some options may need to be selected when arranging the policy. Normal wear from everyday living is not the same as insured damage, and buildings insurance does not usually replace a tenancy deposit process or a detailed inventory. Photographs at check-in and check-out, signed inventories and prompt reporting give you a clearer basis for any dispute, whether through insurance or directly with the tenant.

Rent arrears and void periods

Loss of rent is not automatically the same as rent guarantee insurance. A landlord policy may pay lost rent only when the home cannot be lived in after an insured event, such as a fire or flood. It may not pay because a tenant has fallen behind with payments or because the property is empty between lets. Rent guarantee arrangements tend to have their own eligibility checks, waiting periods, tenant referencing requirements and maximum payment periods. If rental income pays a mortgage or supports other commitments, ask exactly what event must happen before lost rent can be claimed and how long payments could continue.

Theft where there is no forced entry

Theft claims can be limited where there is no evidence of forcible or violent entry or exit. An insurer may query a claim if keys were left in an accessible place, a door was not properly secured, or an outbuilding was left unlocked. The wording may also set separate limits for contents in communal areas, gardens, sheds and garages. If you provide furnished accommodation, check whether the declared contents value reflects replacement cost rather than what the items would sell for second-hand.

Pests, vermin and infestations

Rodents, bed bugs, birds and other infestations are usually seen as property management issues rather than insured incidents, so the removal costs and resulting damage may be excluded. There can be exceptions where an insured event causes damage that then lets pests in, but that depends on the wording and the facts. Regular inspections and dealing quickly with gaps, damp and food waste remain the practical first line of defence.

Illegal activity and deliberate acts

Policies commonly exclude loss connected with criminal, fraudulent or deliberate acts by the policyholder. There may also be restrictions where a property is used for an undisclosed purpose, such as commercial activity, short-term lets or cannabis cultivation. This does not mean you should make assumptions about a tenant. It does mean you should tell the broker about the tenancy type, number of occupants and how the home is used. A standard single-family let, a house in multiple occupation, student accommodation and a holiday let can each need different terms.

Subsidence, heave and landslip

Subsidence is one of the most misunderstood areas of property insurance. It refers to ground movement that causes the building to sink, while heave is upward ground movement and landslip involves soil moving down a slope. Many landlord policies include these perils, but exclusions and higher excesses are common. Claims arising from coastal or riverbank erosion, defective construction, or work that has not been properly supported may be outside the terms. Previous movement, underpinning, nearby trees and past claims should always be disclosed accurately, as they can affect which insurers are willing to quote and on what basis.

Liability arising from business activity or unsafe premises

Property owners’ liability may help if someone is injured or their property is damaged because of your ownership of the building. It is not a substitute for every liability a landlord might face. Claims linked to deliberate breaches, professional advice, employment duties or business activities beyond the insured property can be excluded or require separate protection. Safety obligations still apply regardless of insurance. If a claim is connected with a known hazard that was not addressed, the insurer may investigate whether you met the policy conditions. Maintain gas and electrical safety records where required, respond to reported hazards and keep a clear audit trail of what was done.

Exclusions are not the only issue

An excess is the amount you must contribute towards a valid claim. It is not an exclusion, but a large excess can make smaller losses uneconomic to claim for. Sub-limits work differently again: the policy may insure an event but only up to a stated amount for trace and access, alternative accommodation, locks or landlord contents.

Watch for conditions precedent as well. This is a policy requirement that may affect a claim if it has not been met, for example a security requirement or a timetable for notifying the insurer. The language can be technical, so ask the broker to explain what is required in ordinary terms before you rely on the cover.

Disclosing the property and tenancy accurately

Give complete, accurate information from the outset. If the property has flat roof sections, an unusual construction, previous subsidence, long voids or multiple occupants, mention it. These details may narrow the available market, but failing to disclose them can create a far more serious problem if you later need to claim.

A comparison service can help you reach brokers who handle landlord risks, but quotes are only useful once you compare the terms behind them. Our landlord insurance comparison guide sets out what to weigh up beyond price. MyMoneyComparison.com connects customers with FCA-regulated brokers through one enquiry, and is not an insurer or underwriter. Before proceeding, ask for the policy wording, read the exclusions that apply to your circumstances and raise anything you do not understand before the start date. MyMoneyComparison.com is FCA registered under number 916241.

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Last updated: July 2026