# What does landlord liability insurance cover?

> Quick answer · Last updated 4 July 2026

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## In short

Property owners' liability insurance pays compensation and legal costs if a tenant, visitor or tradesperson is injured or their property is damaged because of a defect in the rental property you should have fixed — such as a loose banister or known electrical fault.

Limits of £1 million to £5 million are typical. The cover responds to negligence claims, not deliberate acts.

It does not replace your duty to maintain gas safety certificates, electrical checks and habitable conditions under the Renters' Rights Act and Housing Act.

HMO landlords face higher occupancy risks — confirm higher limits and HMO-compatible wording.

See landlord insurance explained for how liability fits with buildings cover.

## Related

- [Landlord insurance guide](https://moneyguide.org.uk/insurance/landlord-insurance-explained/)
- [Tenant deposit protection](https://moneyguide.org.uk/mortgages/tenant-deposit-protection/)

## Primary source

abi.org.uk

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.