PR: What are the most common legal or financial risks landlords overlook—and how can they better protect themselves in 2026?
RA: Landlords often overlook the importance of accurately disclosing details about both the tenant and the property to their insurer, which can create problems if a claim is made later. When a policy doesn’t reflect how a property is actually being used - combined with missed compliance requirements or incomplete paperwork - relatively small issues can quickly become costly.
Underinsurance in particular can leave landlords significantly out of pocket, as claims may be reduced if the property or its contents aren’t insured for their true value.
It is also always wise to consider optional extras, such as home emergency cover, legal expenses or rent protection with eviction cover.
If a tenant profile doesn’t match what was declared when the policy was purchased, it could affect the outcome of a claim. If several unrelated occupants are sharing the property, it may effectively be operating as an HMO and should be insured as such.
Likewise, if a landlord states a tenant is employed full-time despite failed referencing checks or irregular income, an insurer may question a later rent protection claim. And where sums insured haven’t been kept up to date, even valid claims may not pay out in full.
Regular policy reviews, accurate documentation, and specialist landlord’s insurance can help create a stronger safety net and reduce the likelihood of unexpected issues during the claims process.
PR: How is the landscape for landlord insurance changing, and what should investors look for in a comprehensive policy?
RA: Landlord insurance is becoming much more detailed, with insurers paying close attention to risk, property condition, and tenant type. Considered cover should include not just buildings insurance, but also liability protection, loss of rent, and legal expenses, so landlords have a broader range of cover if something unexpected happens.
It’s also worth paying close attention to what is and isn’t covered as standard and what is an optional extra, so landlords know exactly what their ‘base’ policy includes. Paymentshield’s standard cover, for example, covers malicious damage caused by a tenant.
Looking at independent ratings helps to provide a quick, at-a-glance assessment of a policy’s comprehensiveness and cover levels when first looking. Paymentshield’s landlord insurance, for example, is rated 5 Stars by Defaqto.
PR: With ongoing tax changes and tightening margins, how can landlords make smarter financial decisions when managing their portfolios?
RA: With margins under pressure, every cost matters more. Making smarter decisions means ensuring that properties are properly insured without overpaying, planning for future costs, and protecting cash flow if rental income is disrupted.
That last point is particularly timely in light of recent legislative changes, with the Renters’ Rights Act coming into effect recently. The abolition of Section 21 “no-fault” evictions means that landlords now generally have to rely on Section 8 grounds if tenants fall into arrears – potentially exposing them to greater financial risk through prolonged arrears, which is exactly the risk rent protection insurance is designed to cover.
Cover for legal expenses could also be increasingly attractive to landlords for the same reason. This is particularly relevant for landlords who rely on rental income to support mortgage payments or portfolio cash flow.
PR: What legal or compliance changes are currently top of the agenda for landlords, and how can they stay ahead of future regulation?
RA: The biggest areas of focus at the moment are the Renters’ Rights reforms, tighter energy efficiency expectations, and stronger compliance obligations around property standards and tenant safety, all of which are aimed at improving the quality and fairness of renting for tenants.
The removal of Section 21, alongside wider reforms to tenancy rules, is set to provide tenants with greater security and stability in their homes, reducing the risk of so-called “no-fault” evictions. In turn, this encourages more transparent and consistent processes from the outset, including clearer documentation and fairer referencing practices, helping tenants feel more protected and informed throughout their tenancy.
In addition, the reforms introduce several tenant-focused measures that landlords need to be aware of. Rent increases are expected to be limited to once per year, creating more predictability and affordability for tenants while requiring landlords to plan pricing strategies more carefully.
There is also a focus on lower upfront costs, with advance rent payments being capped at one month, reducing financial barriers for tenants entering new tenancies. Furthermore, it will become easier for tenants to keep pets, meaning landlords will need to take a more flexible approach, with refusals requiring reasonable justification rather than blanket bans.
At the same time, proposed EPC changes continue to keep energy efficiency firmly on the agenda. For tenants, this should translate into warmer homes and lower energy bills, particularly for older housing stock where upgrade costs can be significant.
We’re also seeing increased scrutiny around issues such as damp and mould, electrical safety, and overall property maintenance, with local authorities taking a more proactive approach to enforcement in some areas.
To stay ahead, landlords should think proactively rather than reactively. Regular reviews of tenancy agreements, compliance processes, insurance arrangements, and property condition can help identify potential gaps early.
Working with specialist insurance advisers can also help landlords keep pace with regulatory change and ensure they have appropriate protection in place as requirements continue to evolve.
PR: How can landlords benefit from working with specialist advisers, and what are the advantages of taking a more professionalised approach to investing?
RA: Advisers can help landlords join the dots between legal, financial, tax, and insurance decisions, highlighting insurance risks and opportunities they may not spot alone, and coordinate with other specialist solicitors and accountants when necessary.
Taking a more professional approach can help improve decision-making, strengthen protection and give landlords greater confidence that their investments are well-managed over time.
From an insurance perspective, tenant-related issues are a significant risk for landlords. This could be deliberate damage to the property, which the landlord needs to put right before a property is fit to be rented out again.
Another scenario would be that the tenant simply stops paying the rent, and the landlord needs to evict them, resulting in both loss of rent and legal fees for the eviction.
An adviser may be able to provide guidance around what optional extras - such as accidental damage, landlord’s emergency support, rent protection and legal expenses - might be appropriate, and help tailor policies to individual circumstances and risk appetite.
