Exempt Accommodation Landlord Insurance UK
Exempt accommodation landlord insurance covers private landlords and investors who lease properties to housing associations, charities or community interest companies that run supported housing paid for through enhanced housing benefit. The landlord normally needs buildings cover, loss of rent and property owners' liability, written with the supported occupancy fully declared. The difficulty is that many landlord insurers either exclude this type of letting or decline it, and a policy arranged as a standard buy-to-let may not respond to a claim. Insurers look at the lease terms, the provider's track record, the type of residents, fire safety and whether the property is a licensed HMO. With councils gaining more oversight of the sector, insurers increasingly ask about inspections and any enforcement.
Key facts at a glance
- The occupancy must be declared. Insuring a supported scheme as a normal buy-to-let can leave you with no cover.
- The lease shapes the insurance. It decides whether you or the provider insure the building and contents.
- The provider's record matters. Insurers look at who runs the scheme and how well it is managed.
- Loss of rent protects your income. Supported schemes can take longer to repair and re-let after damage.
- Councils are watching. Insurers ask about licensing, inspections and enforcement.
What insurance does an exempt accommodation landlord need?
Most landlords need buildings cover, loss of rent and property owners' liability, plus any cover the lease requires.
| Cover | Why it matters | Watch out for |
|---|---|---|
| Buildings | Repairs after fire, flood, escape of water or damage | Exclusions for damage by occupants |
| Loss of rent | Replaces the lease income while repairs are carried out | Short indemnity periods |
| Property owners' liability | Claims from residents, visitors and the public | Limits below the lease requirement |
| Landlord's contents | Furniture and appliances you supply | Theft by residents |
| Legal expenses | Disputes with the provider or contractors | Not usually included as standard |
This is one part of the wider picture covered on our supported accommodation insurance page.
Why do landlord insurers decline exempt accommodation?
Insurers see higher claims for damage, more wear and tear and greater liability exposure, and some have no appetite for the sector at all.
Exempt accommodation has had a lot of attention from councils and Parliament, much of it about poor-quality schemes. That has made some insurers wary of the whole class, even well-run properties leased to established providers. Others will cover it, but only when they understand who the provider is and how the property is managed.
The most common problem we see is a landlord whose policy was arranged as a standard let. If a fire or flood claim reveals the supported occupancy, the insurer can refuse it. Getting the description right at the start is the single most important step.
If you move a property from ordinary letting to a supported housing lease, that is a material change. Tell your broker before the new lease starts.
What do insurers ask an exempt accommodation landlord?
Underwriters want to understand the property, the lease and the provider.
- Property. Type, age, construction and number of bedrooms
- Lease. Length, repairing obligations and insurance clauses
- Provider. Who they are, how long they have operated and how many schemes they run
- Residents. The support needs of the people living there
- Fire safety. Risk assessment, alarms, fire doors and checks
- Licensing. HMO licence status and any council inspections
- Claims. Any previous losses or refusals
How can you protect yourself as a landlord?
- Check the provider. Choose an established, well-managed organisation.
- Read the insurance clause. Know who insures what under the lease.
- Inspect regularly. Keep dated records of inspections and repairs.
- Keep fire safety current. Review the fire risk assessment at least yearly.
- Insure for full rebuild cost. Underinsurance reduces every claim.
Frequently asked questions
Not always, but many schemes are licensed HMOs. Insurers will ask about both.
Only if it specifically covers supported housing. Many standard policies do not.
It depends on the lease. Usually the landlord insures the building and the provider insures its own liability.
Sometimes. It is often excluded or limited, so check the wording.
Many leases ask for £5 million or £10 million property owners' liability.
It can, if the policy is set up to cover the rent payable under the lease.
Yes. Several properties can usually go on one policy.
Tell your broker. A vacant or re-let property may need different cover.
Yes. Disclose any inspections, notices or enforcement.
Often within days once we have the property and lease details.
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Miller & Partner Limited (FRN 1029698) is an Appointed Representative of Gauntlet Risk Management Ltd (FRN 308081), which is authorised and regulated by the Financial Conduct Authority. Miller & Partner Limited is registered in England and Wales (company number 16206282) and trades from Vivian House, Roman Bridge Close, Mumbles, Swansea SA3 5BG. This article is general information, not a personal recommendation or an offer of cover. Cover is subject to insurer acceptance and the full terms, conditions and exclusions of the policy issued.
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