Protect Your
Investment Property
Landlord insurance can help protect a residential investment property against selected risks affecting the building, landlord-owned contents, rental income and legal liability.
What Can Landlord Insurance Cover?
The exact cover depends on the insurer and policy selected, but landlord insurance can combine several forms of protection for a rental property.
Building
Cover may protect the insured building against specified events such as fire, storm and other insured damage.
Landlord Contents
Cover may apply to eligible landlord-owned contents supplied for tenants, such as furniture, appliances or furnishings.
Loss of Rent
Some policies can cover eligible lost rental income following specified insured events or other covered circumstances.
Legal Liability
Policies may include liability protection if you become legally liable for certain injury or property damage claims.
Understand What the Policy Actually Covers
Tenant-related protection varies widely. It is important to distinguish insured events from normal wear, maintenance issues and policy exclusions.
Malicious or Intentional Damage
Some policies may cover eligible malicious or intentional damage caused by tenants, subject to definitions, limits and evidence requirements.
Tenant Default
Some landlord policies may offer cover for eligible loss of rent caused by tenant default, but conditions, limits and exclusions can be significant.
Lease & Claim Conditions
A valid tenancy agreement, proper records and compliance with policy conditions may be important when making certain landlord claims.
🏠 Landlord Insurance
Designed specifically for residential property that is rented to tenants.
- May cover the investment building
- May cover landlord-owned contents
- May include loss-of-rent protection
- May include selected tenant-related risks
- May include legal liability
🛋️ Standard Home Insurance
Ordinary home insurance is generally designed around an owner-occupied home rather than the risks associated with renting property to tenants.
- Different occupancy assumptions
- May not provide landlord-specific benefits
- Rental use should be disclosed to the insurer
- Policy wording should match how the property is used
When Might Rental Income Be Covered?
Loss-of-rent benefits differ between landlord policies. Depending on the product, cover may be available in specified circumstances such as when an insured event makes the property uninhabitable or, under some policies, certain tenant-related events.
The amount payable, maximum benefit period, excess, qualifying circumstances and evidence required can vary substantially.
Events That May Be Covered
Depending on the policy and location, building or landlord-contents cover may protect against selected insured events.
Fire
Eligible loss or damage caused by fire may be covered, subject to policy conditions and exclusions.
Storm
Cover may apply to specified storm-related damage, with definitions and exclusions varying by insurer.
Escape of Liquid
Some policies cover eligible sudden water or liquid damage, while maintenance and gradual damage may be excluded.
Theft or Vandalism
Eligible theft, vandalism or malicious damage may be covered where the policy terms are satisfied.
🏢 Strata Property
If your investment property is an apartment, unit or townhouse under a strata scheme, the owners corporation may insure the building and common property.
You may still need landlord cover for items not insured by the strata policy, landlord-owned contents, liability or rental-income risks.
🏘️ Standalone Property
For a standalone investment property, the landlord may need to arrange adequate building insurance as well as any desired landlord-specific protections.
Check the rebuilding sum insured and what structures are included in the policy definition of the building.
Don't Compare Policies on Premium Alone
An excess is the amount you may need to contribute when making an eligible claim. A landlord policy can have a standard excess as well as different excesses for particular claim types.
Common areas requiring careful review include wear and tear, gradual deterioration, poor maintenance, mould, pests, building defects, vacancy, tenant-related claims, flood definitions and limits on rental-income benefits.
Landlord Insurance FAQs
These answers are general information only. Actual protection depends on the insurer, policy wording and your circumstances.
1. What is landlord insurance?
Landlord insurance is designed for residential rental-property owners and can combine cover for the building, landlord-owned contents, rental-income risks, liability and selected tenant-related events.
2. Is landlord insurance compulsory in Australia?
There is no single Australia-wide rule requiring every landlord to hold landlord insurance. However, lenders, strata arrangements or other contractual requirements may affect the insurance you need.
3. Does landlord insurance cover the building?
It can. Some landlord policies include building cover, while other products allow different cover combinations. Check what you have selected and whether strata insurance already covers the building.
4. What are landlord contents?
Landlord contents are eligible items owned by the landlord and provided at the rental property, such as certain furniture, appliances, curtains or carpets, depending on the policy definition.
5. Does landlord insurance cover tenant damage?
Some policies cover specified malicious or intentional tenant damage, but definitions, exclusions, excesses and limits vary. Accidental tenant damage may be treated differently.
6. Does landlord insurance cover unpaid rent?
Some policies may cover eligible rental loss caused by specified tenant-default circumstances. It is not automatic, and waiting periods, limits, excesses and claim requirements can apply.
7. Does landlord insurance cover loss of rent after a fire or storm?
Some policies can cover eligible lost rent when an insured event makes the property uninhabitable. Check the maximum period, amount and qualifying events in the PDS.
8. Does landlord insurance cover normal wear and tear?
Generally, insurance is not intended to pay for ordinary wear, ageing or maintenance. Exact exclusions vary by policy.
9. Do I need landlord insurance for an apartment?
Strata insurance may cover the building and common property, but it may not cover all of your landlord-owned contents, rental-income risks or landlord-specific liabilities. Check both policies carefully.
10. What is a landlord insurance excess?
The excess is the amount you may need to contribute toward an eligible claim. Different excesses may apply to different claim types.
11. What happens if my rental property is vacant?
Policies can impose special conditions, restrictions or additional excesses when a property is vacant for an extended period. Tell your insurer where required and check the policy wording.
12. Is flood automatically covered?
Do not assume it is. Flood cover, definitions and exclusions can vary between products. Check the PDS and your policy schedule.
13. How much should I insure the building for?
The building sum insured should reflect the appropriate rebuilding cost rather than simply the property's market value. Consider demolition, debris removal, professional fees and construction costs where relevant.
14. Can landlord insurance cover legal liability?
Many policies include liability cover for certain circumstances where the insured landlord becomes legally liable for injury or property damage, subject to the policy terms and exclusions.
15. Can I get a Landlord Insurance quote through Policy Direct now?
Not currently. Policy Direct is developing this section. This page presently provides general information and does not offer a Landlord Insurance quote or comparison service.