Now the Renters' Rights Act is law, does this affect landlord insurance?

When the Renters’ Rights Bill gained Royal Assent on 27^th October 2025, the measures in it were passed into law. From 1^st May 2026, fixed-term tenancies and Section 21 will both be abolished and a new periodic tenancy agreement will come into effect with updated Section 8 grounds. In addition:

• Rent increases will be limited to once a year and payments in advance limited to one month’s rent.
• Landlords will not be able to refuse pets without a good reason.
• Blanket bans on tenants with children or in receipt of benefits will become illegal.
• The maximum civil penalty will rise to £40,000 and rent repayment orders will be increased and extended.

A private rental sector database and new landlord Ombudsman will follow some time from late 2026, with the Decent Homes Standard expected in the mid-2030s.

For more detail on the timeline, see this article.

What are the considerations from an insurance perspective?

Among other changes, after 1^st May next year:

• Without the ability to evict a tenant unless there is a specific valid ground under Section 8, and with every contested eviction requiring a court hearing, regaining possession is likely to become more challenging.
• Landlords will have to wait longer until they can give a tenant notice for non-payment of rent.
• Properties may be at greater risk of damage from pets and children.

All these things have an impact on the level of risk for insurance providers, so there may be some changes to landlord insurance cover and premiums.

Here are five steps to take now to help ensure you continue to have the right cover once the new laws come into effect.

1. Speak to your current insurance provider

Find out what changes they will be making and how your current policy cover could or will be affected. Some key questions to ask:

• Will they be amending or withdrawing any elements of cover?
• If your current policy renewal date is after 1^st May, will they require you to make any additional premium payments to maintain your level of cover?
• How much is the premium likely to rise by for your next renewal?
• Will I need to make additional declarations such as pets or the type of tenants in the property?

2. Check you have legal expenses insurance

Policies commonly provide a fixed sum of cover for legal expenses claims such as taking legal action to regain possession of your property. While many insurers currently include it as standard, once section 21 and the accelerated possession process disappear, it’s possible it will become more expensive to ask tenants to leave.

So, find out whether legal expenses cover will continue to be included - possibly with a higher standard premium - or whether you will need to take it out as an optional extra. Either way, it’s something that could save you a great deal of money if you end up with a drawn-out eviction.

3. Make sure you have malicious damage cover

While accidental damage caused by tenants usually is included as standard, landlord insurance providers often list malicious damage cover as an optional extra. This usually doesn’t add much to the overall premium, and with the increased risk of having a tenant in your property for longer, it is certainly worth considering financial protection against deliberate and wilful damage.

4. Look into rent guarantee insurance

With a potential for increased risk of rent arrears under the new legislation, if you don’t currently have rent guarantee insurance, it’s worth thinking about now. Bear in mind that it may become more challenging and expensive to secure, and the terms/criteria could become tighter, but it can be a worthwhile safeguard for your rental cashflow.  As a landlord within LRG, if you haven’t considered rent and legal cover through Premier Service, it is worth talking to your local branch about.

5. Consider pet damage insurance

In the original draft of the Bill, there was a mandate for tenants to cover the cost of pet damage insurance, however this was later removed. Although you can still request that a tenant take out cover themselves or reimburse you for it, you can no longer legally require this.

Nevertheless, it is worth considering what could be the small extra monthly cost in return for peace of mind that if your tenant’s pet does cause damage (over and above the natural wear and tear you would expect with a pet), you are financially covered. Remember that pet damage is usually not included in standard landlord insurance cover.

Policies may vary and we encourage landlords to check the details of their policy as soon as possible. If you have any questions about the impact of the Renters’ Rights Act, contact the LRG agency you let through to speak to one of our specialists/experts. To see what your options are regarding Landlords Insurance, you can contact our dedicated team either via our online form, or by calling 01903 890044.

And if you are a current landlord who rents a property through LRG, an insurance quote is ready and waiting for you in your online landlord account. No fuss or forms to fill out!

Details considered true at the time of publication.

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