Renters’ Rights Act – Landlords, its time to review your insurance policy
The Renters’ Rights Act 2026, which came into force on 1 May 2026, is reshaping the UK rental market in ways that extend well beyond tenancy agreements. It is also materially changing how insurance risk should be assessed and managed.
If you are a landlord in England, now is the time to reassess whether your current insurance arrangements remain fit for purpose in this new regulatory environment.
At the centre of the reforms is the abolition of Section 21 “no-fault” evictions. Government policy confirms that landlords must now rely on statutory grounds for possession under Section 8, with all routes requiring court-based processes. This structural change places greater emphasis on the courts and is therefore expected to extend the time required to regain possession of a property.
From an insurance perspective, this increases exposure to longer rent arrears periods and higher legal expenses, as income disruption is more likely to continue during extended possession timelines.
As a result, Rent Guarantee Insurance (RGI) and legal expenses cover have become increasingly important elements of landlord risk management. RGI typically protects landlords against loss of rental income where tenants fall into arrears and may also include cover for legal costs associated with eviction proceedings, depending on policy terms. In a slower, court-led possession environment, this protection plays a greater role in stabilising rental income risk.
The Act also strengthens tenant protections, including measures relating to households with children and tenants in receipt of benefits, alongside reforms aimed at making it easier for tenants to request permission to keep pets in rental properties. These changes form part of wider policy objectives to create a fairer and more accessible private rented sector. This evolving framework may influence how landlords and insurers approach tenant risk assessment, with potential implications for underwriting considerations and pricing over time.
In addition, the move toward more secure, open-ended tenancies increases exposure to longer-term property wear, ongoing compliance obligations, and delayed exit-related risks, particularly where tenants remain in occupation for extended periods without fixed renewal points.
Looking ahead, the key question is resilience: could you sustain several months without rental income? Are you protected if possession takes longer than under the previous regime? Do your current policies reflect a system that is now more court-driven and time-intensive?
This is where Adler Fairways can help. Our team can review your insurance arrangements, identify gaps created by the reforms, and structure tailored protection strategies, particularly around rent guarantee insurance, legal expenses cover, and overall landlord policy adequacy.
Luke Stevenson, Regional Director at Adler Fairways said “We have received a number of updates from our insurance partners, many of whom are taking different approaches to the increased risks arising from the Act.
“With this in mind, I would recommend that landlords review their current policies and seek guidance from their insurance broker. This will help navigate any differences in policy requirements and ensure you are adequately protected.
“Reviewing policy content alongside a discussion with us will ensure you are covered for any increased risks affecting both you as a landlord, and your property”.
Call us today to review your insurance arrangements and discuss how your cover can be adapted to reflect the current regulatory and risk environment.
Luke Stevenson
Regional Director
Adler Fairways
