Will the Renters' Rights Bill affect landlord insurance?

On the 8^th September, considerations of the House of Lords’ amendments on the Renters’ Rights Bill were made. The next stage is the consideration of the House of Commons’ amendments on the 8^th October.

The final stage, Royal Assent, is when the Bill is passed and this is looking likely to be before the end of the year. It’s important to know that not all the measures will come into force right away. The property industry has asked for a minimum six-month lead time for any changes and, with new legislation traditionally introduced in either April or October, we will probably see the first elements of the Act become law in April 2026.

That first wave of changes is likely to include:

• Abolishing Section 21
• Updating Section 8 grounds for possession
• Scrapping ASTs and fixed-term tenancies
• Introducing mandatory written terms for all tenancies
• Giving tenants the right to request a pet
• Restricting rent increases to once a year
• Tightening discrimination rules so landlords cannot refuse tenants on the basis that they are in receipt of benefits or have children

The Decent Homes Standard and Awaab’s Law are currently still in consultation, and the PRS Database and new Ombudsman redress scheme will also take more time to finalise before they’re ready to be put into practice.

How could the first wave of changes affect landlord insurance?

Some of the changes that strengthen tenants’ rights will have an impact on landlord insurance, in terms of the level of cover you need to consider. Here are the key things to know that are worth discussing with your insurance provider so that you can be prepared before the legislation comes into force:

The end to Section 21: insurance premiums are likely to rise

Once landlords are unable to evict the tenants they need to, unless they are in breach of a specific ground, it becomes more challenging to regain possession and the risk of property damage increases. As a result, the cost of a standard landlord insurance policy is likely to go up. So, find out from your insurer what plans they have to increase premiums and shop around to make sure you have the best value cover.

Revisions to Section 8 rent arrears ground: consider rent guarantee insurance

The Bill proposes increasing the period a tenant must be in arrears before notice can be served from 2 to 3 months and extending the notice period from 2 to 4 weeks. This means landlords could be without rental income for 4 months – more if the tenant refuses to leave and has to be evicted.

As such, more landlords may take out rent guarantee insurance, which is likely to become more expensive, given that it will almost certainly take longer to regain possession via the court eviction process. If you’re a landlord with LRG, speak to your property manager to find out more about our Premier Service offering.

Damage caused by children and pets: take out additional or extended cover

A standard landlord insurance policy is highly unlikely to cover any loss or damage caused by pets, and it also doesn’t cover wear and tear – that’s deterioration that occurs in the normal course of the occupants (including pets and children) living in the property. For more on this, and the steps you can take as a landlord to protect yourself, see our separate recent article.

Renting to a more diverse range of tenants: make sure you have legal expenses insurance

With discrimination rules tightening, you may end up letting to a wider range of tenant types than you have been used to. Legal expenses insurance can cover the cost of taking action over evictions, damage claims and other tenancy conflicts. Most landlord policies include this, but do check and consider taking out additional cover if necessary.

If you have any questions about the impact of the RRB or would like to make sure you have the right level of cover now, our team of experts is here to help. Contact us either via our online form, or by calling 01903 890044.

And if you are a current landlord with any of the agencies in LRG, an insurance quote is ready and waiting for you in your online landlord account. No fuss or forms to fill out!

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