What Is Landlord Insurance and Do I Need It in Ireland?

By David Tait

Editorial Manager

When renting out a property, things sometimes go wrong. Landlord insurance to protect your property from unexpected damages and problems that might occur. Although it’s not compulsory, it’s a good idea to have landlord insurance to avoid forking out large amounts of money if calamity strikes. This is why we’ve created this comprehensive guide to take you through how landlord insurance works.

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What Is Landlord Insurance in Ireland?

Landlord insurance in Ireland is an important part of renting out to tenants either for the first time or as part of a new property. Insurance is always there to make sure you can cover large costs if you have unexpected damages to the property. Insurance can also cover for basic wear and tear for routine repairs so you’re not paying full price for all the work being done. In short, for landlords insurance is key.

Is Landlord Insurance Compulsory in Ireland?

Landlord insurance is not compulsory in Ireland but it’s still vital to have if you want to avoid costs for repairs in the future. Also, having good landlord insurance will give your tenant confidence that you as a landlord are reliable and are well prepared in the event of an accident. Even if your tenant is only renting a room, it’s worth looking into.

What's the difference between landlord and building insurance? There’s a big difference between landlord insurance and building insurance so you need to make sure you know what the policy you’re taking out covers you for. Landlord insurance is for damages typically inside the property such as wear and tear or by a tenant. Building insurance covers you for more structural damages such as a fire.

What Are the Benefits of Landlord Insurance?

The benefits of having landlord insurance are innumerable. Even though it seems like you’re paying a lump sum every month for something that might not happen, the fact is that unexpected things will always take you by surprise. Here are some of the main benefits of having landlord insurance in Ireland:

• Security
  The fact of the matter is that having landlord insurance gives you a lot of security for the future. Knowing that you’re covered means you don’t have to worry about damages and you can relax knowing that wear and tear can be taken care of without burning a hole in your bank account.
• Tenant’s Confidence
  If you’re well insured, your tenant will have a lot more faith that they’re renting a place where the landlord cares about the condition of the flat. This is important because it creates a long lasting relationship with your tenant that guarantees them staying with you a long time and renew their tenancy agreement.
• Indirect Effect on Tax Relief
  If you’re carrying repairs on your property, you might be eligible for tax relief when it comes to your income taxes. This means your expenses when carrying out repairs are counted as allowable expenses when you do your annual tax return.

What To Watch Out For with Landlord Insurance

As well as benefits, there are also aspects to look out for when shopping around for landlord insurance. You want to be careful that you don’t call into any traps that don’t cover you adequately. So when looking around, make sure you:

• Avoid ‘Normal’ Landlord Insurance
  Taking a cheap policy - typically labelled as just normal or basic landlord insurance - it’s generally not enough cover for your property. You want to make sure you take out an All Risks policy to make sure your property insured against everything.
• Make Sure Malicious Damage Is Covered
  This is often missed when looking for an insurance policy. You should make sure that malicious damage caused by the tenant is covered in your policy otherwise you will only be covered for accidents.
• Check the Electricity Certificate Policy
  Double check to see what your insurance policy says about the electricity certificate. Usually most policies will require that a BER rating certificate is required every 2 to 3 years so you should just make a note of when it’s needed.
• Unoccupied Property Condition
  Some landlord insurance policies will have a clause in them that will restrict their cover if the property is left unoccupied for a period of time. If you change tenants regularly, you should take note of how long this period is so you know exactly what the conditions are.

Like anything regarding insurance or finance, you must be very careful about the policy you take out so you know exactly what you’re getting. It’s the very worst thing to need to do major repairs only to find out that your landlord insurance policy doesn’t cover you.

Moving to Ireland? Get your utilities sorted!

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01 903 6556 Request a free callback

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Save time on calling your different utility companies by calling Selectra and getting your energy, broadband and waste in one hassle-free call!

Selectra is currently closed. You can leave your phone number and get a free callback.

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What Does Landlord Insurance Cover in Ireland?

Good landlord insurance in Ireland will cover you for all eventualities that might occur when renting out to a tenant. Many policies will cover all aspects of a property but again you need to be careful you’re getting exactly what’s needed for your situation. Here’s a list of the main aspects that are covered by landlord insurance:

1. Landlords Liability
   Landlords liability is where you are covered for the legal costs associated with a tenant’s accident, illness or death. Usually an insurance company will cover you up to a certain amount per claim.
2. Loss of Rent
   With loss of rent, you can be covered for any missed rental payments if your property becomes inhabitable due to extensive damage. You’ll usually receive a percentage of the rent that you would have received.
3. Rent Guarantee
   Rent guarantee covers you if your tenant defaults or misses a payment. This usually is a limit of up to 2 months, however you can be covered in the event of a gap between one tenant moving out and another moving in.
4. Contents Cover
   With contents cover you can protect the items inside the home. This includes the furniture, appliances, fixtures and exterior parts of the property such as fences and walls, all of which can be covered if they are damaged.
5. Emergencies
   You usually add extra emergency cover in the event of problems arising due to a boiler problem or electrical emergency where you can have 24/7 care and a professional will come to your property to fix it.

What Affects Your Landlord Insurance Cover?

Of course, any policy you take out for your landlord insurance will depend on your property and on you as a landlord. The amount you’ll be covered for will be determined on a bespoke basis and you’ll be catered for exactly what you need for your property. Here are some of the main factors that’ll affect you policy:

1. Location
   The location of your property will impact the amount you’ll pay for your policy. Typically if your property is in an area with a higher crime rate there’s a greater risk that the property will be broken into and insurance companies will cover themselves to compensate for that risk.
2. Number of Tenants
   If you have more tenants, you might need to pay a higher premium on your insurance since there’s a higher risk of damage when there’s more people living together.
3. Number of Properties You Own
   Although you’ll pay more overall to insure each property, you might get a better deal if you’re insuring for other properties you own.
4. Safety Policy
   If you’ve got security and fire alarms installed, most insurance companies will probably let you pay less than if you hadn’t. Taking safety precautions to ensure that you won’t need to use the policy is a way to make it cheaper.

How Much Does Landlord Insurance Cost in Ireland?

The amount you’ll pay for your landlord insurance will depend a lot on the condition, size and location of the property. Usually, if your situation is considered higher risk, then it’s likely you’ll pay more for your policy. Every landlord insurance policy is a bespoke policy meaning that it will be put together for your specific needs.

What Is the Average Cost of Landlord Insurance in Ireland?

The average cost of landlord insurance in Ireland isn’t easy to determine. Since insurance policies are so specific, it’s impossible to know what cost you’re facing beforehand. The best way to compare is to look around and get quotes from various landlord insurance companies to find out. That being said, many companies offer an average cost of landlord insurance of around €250.

Who Offers the Best Landlord Insurance in 2022?

You can get your landlord insurance from any insurer in Ireland. Most companies will offer a basic package which will provide you with everything you need but you should make sure you’re getting what you need. Here’s a list our top five landlord insurance providers:

1. Bank of Ireland
2. Allianz
3. FBD
4. AXA
5. 123