Back to News


Why is the cost of Landlord Insurance increasing?

If you’ve been hunting for Landlord Insurance, you have probably noticed that prices across the market have crept up.

Indeed, some Landlord Insurance premiums have risen by as much as 25%. But what has caused prices to increase so dramatically? 

As it turns out, there isn’t a singular cause for this rise. Instead, a number of factors have combined to push up premiums over the last few months. Here is a rundown of the most significant.

Inflation has risen

A key factor behind the increased cost of Landlord Insurance is, of course, inflation. Spiralling inflation has raised costs in many aspects of our lives, and insurance has not been immune to this.

If your Landlord Insurance policy is index-linked, it follows the rise of inflation to reduce the risk of underinsurance. This means that when your renewal quote comes through, you’re very likely to see a much higher premium. 

Your insurer rate is also likely to have gone up thanks to inflation. As it stands, this could be increasing by 7% or more.

Materials and labour are costly

Inflation has also played its part in the cost of materials and labour, which were already rising due to supply chain issues and a reduced workforce. 

With both materials and the wages of those needed to rebuild a home on the up, the total cost of rebuilding your rental property from scratch will now be more expensive. Indeed, the BCIS House Rebuilding Index showed that the annual percentage increase stood at an eye-opening 19.4% in December 2022.

To ensure you aren’t left short-changed should you need to make a claim, your sum insured will therefore need to rise. This will make your premium more expensive.

The market has shrunk

A market with a lot of players in it means that there will be competition. This competition helps to reduce prices. 

However, a number of insurers have recently pulled out of the Landlord Insurance market. This has reduced competition, which has had a knock-on effect on premiums.

Read more Landlord news »

Storms have been expensive

Cast your mind back to early 2022, and you should remember how a series of large storms caused havoc across the country.

Unfortunately, storms and events such as flooding can lead to very expensive claims. Indeed, the average flood claim sits at around £30,000. When bad weather is widespread, this can lead to a surge of pricey claims. For example, in the wake of the devastation of Storm Eunice in 2022, insurers paid out around £500 million for storm damage.

This has understandably raised risk levels for insurers. These risks have also become more difficult to predict and calculate. As a result, prices have risen.

One Broker Landlord Insurance

It’s undeniable that Landlord Insurance premiums have increased across the board. However, at One Broker we offer a bespoke Landlord Insurance scheme, which could give you an advantage. 

This scheme is aligned with dedicated providers in the sector, to ensure we can offer great value. You can also talk to our experienced team of brokers to assess your exact needs. This means that you can get the right cover at the right price.

Speak to the Lettings Insurance Team today to get a quote for your Landlord Insurance.

Related Articles