Landlord challenges are evolving – and general insurance is evolving with them

Landlords across the UK are facing one of the most challenging operating environments in years. Regulatory reform, shifting tenant expectations, rising costs and tighter margins are changing the realities of property investment, and with the Renters’ Rights Act now in force, many landlords are reassessing how exposed they are to risk.

For mortgage intermediaries, this presents an important opportunity.

Brokers have always supported landlords with finance, but increasingly landlords need broader advice around protecting rental income, maintaining profitability and reducing risk across their property investments. General insurance has become a critical part of that conversation - not simply as a compliance requirement, but as a practical tool for navigating the challenges of modern property ownership.

What’s particularly interesting is how insurance products themselves are evolving in response.

1. Rent arrears and loss of income – now a front-of-mind concern

The most immediate concern for many landlords in 2026 is rental income security.

With Section 21 abolished and tenancies moving to periodic agreements under the Renters’ Rights Act, regaining possession can now take longer where tenants fall into arrears. For landlords, that means greater potential exposure to missed rent payments, extended legal processes and longer periods without income. Research by PropertyMark shows the current average to now be at 68 weeks, up from just 20 weeks 7 years ago.

As a result, rent guarantee insurance has moved much higher up the agenda.

Some providers, including Ceta, have updated rent guarantee propositions specifically in response to this new landscape. Cover enhancements increasingly include longer indemnity periods, legal expenses linked to possession proceedings, and wordings designed around the practical realities of arrears recovery under the new framework.

Not all policies have adapted at the same pace, however.

For brokers, this creates a real advice opportunity. It’s no longer enough to ask whether a landlord has rent protection in place, it’s about whether that cover remains fit for purpose under today’s legislation.

2. Pets in rental properties – changing tenant rights creates new insurance considerations

Another major change is around pets.

Tenants now have the right to request a pet, and landlords must consider that request reasonably. This shifts the risk conversation for landlords significantly.

Historically many landlords managed this by simply declining pets. That option is now more limited, and understandably many are asking what happens if pets cause damage to flooring, furnishings, doors, gardens or communal areas.

Insurance is increasingly part of the answer.

Some landlord policies now include accidental or malicious damage cover that can respond to pet-related damage where policy conditions are met. Others may exclude wear and tear or offer more limited protection, meaning landlords may need enhanced accidental damage options or specialist add-ons.

This is an area where wording matters enormously and brokers are best place to advise.

For intermediaries advising landlords, particularly those with furnished lets or higher-value properties, it’s worth encouraging a review of exactly what is and isn’t covered. For some clients, a broader landlord insurance policy may be appropriate; for others, additional tenant damage protection or more specialist cover may need to be considered.

3. Rising repair costs and property damage – bigger claim values, greater financial impact

The cost of maintaining rental property continues to rise.

Materials, contractor labour, emergency call-outs and replacement items are all significantly more expensive than they were a few years ago. A leak that once felt manageable can now become a much larger claim - especially where there is tenant disruption or loss of rent involved.

Insurers have responded in several ways.

We’re seeing stronger demand for accidental damage cover, enhanced escape-of-water protection, home emergency assistance, trace-and-access benefits and loss-of-rent extensions attached to buildings policies.

This evolution matters because landlords are increasingly looking beyond “does it insure the building?” to “what happens financially if my tenant can’t live there for three months?”

That broader protection conversation is where advisers can add real value.

4. Compliance risk and liability – protection beyond the property itself

Landlords are also operating in a more regulated and litigious environment than ever before.

From licensing requirements and fire safety obligations to EPC requirements, damp and mould expectations and increasing scrutiny over property standards, the risk of disputes or liability claims has grown materially.

Insurance has expanded to reflect this too.

The majority of insurance providers now offer legal expenses cover, property owners’ liability protection, landlord liability extensions and access to legal helplines to support landlords dealing with disputes or regulatory issues.

While insurance doesn’t replace legal compliance, it can provide valuable financial and practical support when issues arise. For landlords managing multiple properties, or accidental landlords unfamiliar with the regulatory landscape, this can be especially valuable.

5. Protecting profitability in a tighter market

Perhaps the biggest challenge of all for landlords is maintaining profitability.

Higher mortgage costs, taxation changes, maintenance inflation and legislative change have all reduced margins. Every unexpected cost now lands harder.

That’s why general insurance is increasingly moving from being seen as an unavoidable cost to being viewed as part of a landlord’s wider financial resilience strategy.

The right cover can protect rental income, reduce exposure to major repair bills, limit legal costs and provide continuity when things go wrong. In a market where margins are tighter, avoiding one major uninsured loss can have a significant impact on annual returns.

A growing opportunity for mortgage intermediaries

Mortgage brokers are already at the centre of many of these conversations, with 98% of BTL Mortgages transacting through a broker already.

Whether arranging a purchase, refinance or portfolio review, advisers are discussing affordability, rental yield, tenant demand, property condition and long-term investment strategy with their landlord clients every day.

That naturally creates the opportunity to ask broader questions:

• How would missed rent affect cashflow?
• Has the landlord reviewed their cover since the Renters’ Rights Act changes?
• Does the policy reflect the possibility of pets in the property?
• Would the client be protected if a tenant dispute became legal?
• Is there sufficient cover for loss of rent following a claim?

These are practical questions, and increasingly important ones.

For brokers, supporting landlords with general insurance isn’t simply about introducing another product line. It’s about responding to how the landlord market is changing.

The risks landlords face today are broader, more operational and more interconnected than before. Insurance products are evolving to meet those risks. Advisers who understand that shift are well placed to deliver more value to landlord clients, strengthen retention and create additional GI income at the same time.

In today’s buy-to-let market, supporting landlords means more than arranging finance. It means helping them protect the income behind the investment.