From 1 May 2026, fixed-term Assured Shorthold Tenancies are abolished in England. All new private residential tenancies must be Periodic Assured Tenancies (PATs) — open-ended tenancies that continue until either the landlord uses Section 8 or the tenant gives 2 months' written notice. This structural change affects multiple areas of a standard landlord insurance policy.
This guide does not constitute insurance advice — you should speak to your broker or insurer directly. However, it identifies the key areas where the RRA 2025 creates policy gaps, so you know which questions to ask.
How the Renters' Rights Act 2025 changes the tenancy landscape
The insurance implications stem directly from what the RRA 2025 changed about how tenancies work:
- No more fixed-term ASTs: Fixed-term tenancies (typically 6 or 12 months) are abolished for new private residential tenancies in England from 1 May 2026. All new tenancies are periodic from day one
- Tenants can leave on 2 months' notice: A tenant on a PAT can give 2 months' written notice at any time. There is no minimum tenancy period (the old 6-month bar on Section 21 is gone — but so is Section 21 itself). Tenants can theoretically give notice in month 1
- Landlords must use Section 8: Landlords can no longer serve Section 21 to end tenancies. All possession now requires a Section 8 notice and a court hearing — a longer process than accelerated possession under Section 21
- Possession takes longer: Section 8 possession cases (even on mandatory grounds like Ground 8 rent arrears) require a court hearing. From notice to possession, timescales are longer than pre-2026 fixed-term tenancy endings
- Awaab's Law adds maintenance obligations: The RRA 2025 introduces statutory timeframes for responding to damp and mould reports — failure to comply creates additional liability exposure for landlords
Rent guarantee insurance — key review areas
Rent guarantee insurance (RGI) pays rent if a tenant stops paying. The RRA 2025 changes how these policies work in practice and where gaps may arise:
- Policy trigger — check the definition of 'rent arrears': Most RGI policies trigger after rent is overdue by a specified period (typically 1–2 months). Under a PAT, rent arrears arise the same way — but confirm your policy covers PAT tenancies explicitly, especially if it was issued before May 2026
- The possession route is longer: Older RGI policies may have been structured around fixed-term tenancies and Section 21 timescales. Under Section 8, mandatory ground possession claims (Ground 8 rent arrears) still require a court hearing — potentially 8–16 weeks from notice to possession order, then additional time to enforce. Check whether your policy covers rent throughout this extended period
- Legal expenses for Section 8 claims: Many RGI policies include legal expenses cover for possession proceedings. Confirm that your policy explicitly covers Section 8 court proceedings — not just Section 21 (which is now abolished). Policies updated pre-May 2026 may reference Section 21 procedures that no longer exist
- Referencing requirements: Most RGI policies require tenants to have passed a credit and referencing check. Confirm that your referencing process meets the policy requirements for PAT tenancies — some insurers have updated their referencing criteria following the RRA 2025
- Tenant notice — PAT ending by tenant: On a PAT, a tenant can give 2 months' notice and leave at any time. RGI does not cover voids caused by a tenant lawfully leaving — only where the tenant is in unlawful occupation without paying. Ensure you understand when RGI begins and ends
Legal expenses insurance — Section 8 possession cover
Legal expenses insurance (LEI) pays your legal costs for landlord–tenant disputes including possession claims. The RRA 2025 makes Section 8 the only possession route — LEI cover for these claims is now more important than ever.
- Check Section 8 is explicitly covered: Some policies refer to 'possession proceedings' generically; others specify Section 21 or Section 8 by name. If your policy was issued before May 2026, check whether Section 8 proceedings under the updated RRA 2025 grounds are within the policy scope — particularly the new grounds 1A, 8A, and 7A
- Coverage limit: Section 8 possession claims can involve multiple hearings if contested. Check your policy's per-claim legal costs limit is sufficient for a contested possession case — limits of £25,000–£50,000 are now more appropriate than pre-RRA limits. Contested claims can exceed £10,000 in solicitor's fees
- Awaab's Law defence: If a tenant raises a defence based on Awaab's Law non-compliance (e.g. claiming the landlord failed to address damp within statutory timeframes), your legal expenses policy should cover defence of that counterclaim. Check whether housing disrepair defences are within scope
- Civil penalty appeals: The RRA 2025 enables local authorities to impose civil penalties of up to £40,000. Some LEI policies cover representation at civil penalty appeals to the First-tier Tribunal — check whether yours does
- Excess and exclusions: Check your policy's excess (the amount you pay before cover begins) and exclusions. Common exclusions that become more relevant under the RRA 2025 include pre-existing disputes with the same tenant, disputes relating to licensed HMO breaches, and claims arising from unlicensed properties
Buildings insurance — periodic tenancy and void period review
Buildings insurance covers the structure of the property. The RRA 2025 changes how void periods arise and how long they may last.
- Void period cover: Buildings insurance typically provides reduced or excluded cover for properties unoccupied for more than 30, 45, or 60 days (the unoccupancy threshold varies by insurer). Under PATs, landlords cannot control exactly when tenants leave — a tenant giving 2 months' notice may leave in December, creating a winter void. Check your policy's unoccupancy threshold and what additional steps (draining pipes, weekly visits, locked windows) you must take during a void
- Longer possession timescales → longer voids: If possession is contested or delayed, the property may be in a void between the possession order date and re-letting. Confirm that your buildings insurance covers this extended void period
- Squatter/unlawful occupant cover: If a former tenant remains in the property after a possession order and refuses to leave until bailiffs attend, are they covered under your buildings insurance as an unlawful occupant? Some policies exclude damage caused by persons in unlawful occupation
- Landlord contents insurance: If you provide white goods or other contents, confirm your contents policy covers these during a void and during the period of Section 8 possession proceedings
Awaab's Law and public liability insurance
Awaab's Law imposes statutory timeframes for responding to damp and mould. Failure to comply within those timeframes creates additional liability exposure for landlords.
- Public liability: If a tenant suffers a health impact attributable to damp and mould in your property, they may bring a personal injury claim. Public liability insurance (typically included in landlord buildings insurance packages) covers these claims. Review your coverage limit — personal injury claims involving respiratory illness or asthma can be substantial
- Awaab's Law compliance as a policy condition: Some insurers may update policy conditions to require Awaab's Law compliance as a prerequisite for cover — similar to existing conditions requiring annual gas safety certificates. Check whether your insurer has updated terms post-RRA 2025
- Document compliance: Insurers handling damp and mould claims will scrutinise whether you acknowledged, investigated, and repaired within statutory timeframes. Maintain detailed records of all reports, inspection notes, and repair dates — these are your evidence of Awaab's Law compliance in any subsequent claim or litigation
Checklist — insurance review for Renters' Rights Act compliance
Questions to ask your insurer or broker following the RRA 2025 changes:
- Does my rent guarantee insurance policy cover Periodic Assured Tenancies specifically?
- Does my RGI policy cover the full period of a Section 8 possession claim, including any adjournments or appeals?
- Does my legal expenses insurance cover Section 8 proceedings under all current grounds, including new Grounds 1A, 8A, and 7A?
- Is there coverage for Awaab's Law disrepair defences raised in possession proceedings?
- Does my buildings insurance void period threshold accommodate longer voids arising from the PAT notice structure and Section 8 possession timescales?
- Is unlawful occupation (e.g. a tenant refusing to leave after a possession order) covered under my buildings or legal expenses policy?
- Does my public liability coverage adequately cover personal injury claims arising from damp and mould (Awaab's Law scenarios)?
- Are there any updated policy conditions requiring Awaab's Law compliance or PAT-specific tenancy documentation?
Frequently asked questions
Do I need to update my landlord insurance policy because of the Renters' Rights Act?+
Yes — the RRA 2025 changes how tenancies work, how possession is obtained, and what maintenance obligations landlords have. Policies issued before May 2026 may reference Section 21, fixed-term ASTs, or outdated possession timescales. Contact your insurer or broker to confirm that your policy covers PAT tenancies, Section 8 possession proceedings under the revised grounds, and Awaab's Law liability exposure.
Will my rent guarantee insurance still pay out if I cannot get possession under Section 8?+
Most rent guarantee insurance policies pay rent while a tenant is in arrears and possession proceedings are ongoing, subject to policy limits. With Section 8 as the only possession route, proceedings may take longer than pre-2026 Section 21 possession — check that your RGI policy's coverage period and payment limits are sufficient for a contested Section 8 case.
My tenant is staying beyond the possession order date — does my insurance cover this?+
Whether your buildings or legal expenses insurance covers the period between the possession order and bailiff enforcement depends on your specific policy. Some policies cover unlawful occupation damage; others exclude it. Review your policy wording and confirm with your insurer whether this extended period is within scope.
Does Awaab's Law create new insurance obligations?+
Awaab's Law creates statutory damp and mould response timeframes that, if missed, create liability exposure — including Rent Repayment Orders, civil penalties, and potentially personal injury claims. Your public liability insurance should cover personal injury arising from housing disrepair. Review your coverage limit and confirm whether Awaab's Law compliance is now a policy condition.