Landlord insurance is a policy that covers you against events such as loss of rent due to a tenant’s rent default, the theft or burglary of any belongings you have leased to your tenants, and natural disasters such as storms. Additionally, you can get insured for accidental or malicious damage to the structure of your property.
It pays to remember that each landlord policy is different. Some policies will cover you for all the events listed above, while others will only cover you for a selection of scenarios. Always review your Product Disclosure Statement (PDS). That way you can be sure the product you are thinking of purchasing covers the events you want protection against.
Landlord insurance is designed to help you protect your investment property and any personal contents inside. This type of insurance typically covers the building and permanent fixtures from accidental damage (excluding boundary fences), furnishings and even rental default. You’re covered for the regular things such as fire, storm and impact damage, but you may also be able to insure against loss of rent.
Landlord insurance allows you to insure just the building, just the contents, or both the building and contents – depending on the insurer’s policy. If you’re a landlord in the market for cover, you can compare and purchase cover within minutes for free with our easy-to-use landlord insurance comparison service.
Landlord insurance is important because as a landlord, you’re responsible for protecting your property, regardless of its size or features. Without it, you could be facing expensive out-of-pocket costs to repair the home.
You may also be legally liable for incidents that occur at the property. Reviewing landlord insurance policies with our free landlord insurance comparison service can help you find cover for your investment.
Various factors can affect the cost of your landlord insurance policy, including:
We recommend going through our free landlord insurance comparison service for a more accurate quote for your suburb and property.
To gauge how much Aussies may pay for their cover, we’ve looked at the suburbs that received the most completed quotes in 2018 for landlord insurance through our website. These were as follows:
Home and contents insurance by state and territory
|State/Territory||Indicative annual premium|
|Source: Comparethemarket.com.au quotes from 2/08/19. These indicative prices are based on quotes for freestanding houses built between 1990 and 1999, constructed with brick veneer walls and terracotta/clay roof tiles. Quotes were completed for suburbs that registered the most landlord insurance quotes completed with Compare the Market in 2018. The following postcodes have been included: 2148 (Blacktown, NSW), 3030 (Werribee, VIC), 4301 (Redbank Plains, QLD), 5000 (Adelaide, SA), 6171 (Baldivis, WA), and 2913 (Franklin, ACT). Building values and home replacement figures are based on mean dwelling price statistics from the Australian Bureau of Statistics (ABS). Rental income is based on ABS housing cost figures, and contents replacement is set at $40,000. For prices more indicative of your property, use our free home and contents insurance comparison service.|
Landlord insurance covers a range of incidents and events, including some that are unique to rental properties. With any insurance policy, it’s vital to go through the Product Disclosure Statement (PDS), which outlines the specific cover amounts, listed events and exclusions.
When using our free landlord insurance comparison service, you’ll be able to see what’s covered under each policy when comparing them side by side.
N.B. Coverage for events such as flood damage and motor burnout may be an optional extra, which will cost more to include on your policy.
The table below outlines the common inclusions and exclusions of landlord building insurance, landlord contents insurance and landlord combined building and contents insurance – remember to always check the PDS as policies differ between insurers:
|Event||Covered by landlord building insurance?||Covered by landlord contents insurance?||Covered by landlord combined building and contents insurance?|
|Fire damage||Yes – excluding damage from cigarette smoking, scorching or melting||Yes – excluding damage from cigarette smoking, scorching or melting||Yes – excluding damage from cigarette smoking, scorching or melting|
|Flood damage||Yes – though this may be an optional extra that costs more to add to the policy||Yes – though this may be an optional extra that costs more to add to the policy||Yes – though this may be an optional extra that costs more to add to the policy|
|Movement of the sea||No||No||No|
|Sinkholes||Yes||Yes – if the contents are damaged due to a sinkhole||Yes|
|Theft||Yes – damaged caused by burglary is also covered||Yes – damaged caused by burglary is also covered||Yes – damaged caused by burglary is also covered|
|Vandalism and malicious damage||Yes – includes damage from tenants and their guests||Yes – includes damage from tenants and their guests||Yes – includes damage from tenants and their guests|
|Lease break and loss of rent||Yes||No||Yes|
|Legal action against bad tenants||Yes||No||Yes|
|Damage from vermin||No – this also excludes damage from other animals besides rodents and insects||No – this also excludes damage from other animals besides rodents and insects||No – this also excludes damage from other animals besides rodents and insects|
|War and uprising||No – civil unrest may be covered||No – civil unrest may be covered||No – civil unrest may be covered|
|Accidental damage to glass and ceramics||Yes – this may be an optional extra that costs more to add to the policy||Yes – this may be an optional extra that costs more to add to the policy||Yes – this may be an optional extra that costs more to add to the policy|
|Loss of liquid||Yes – doesn’t cover repair or replacement to the item that leaked (such as an aquarium)||Yes – doesn’t cover repair or replacement to the item that leaked (such as an aquarium)||Yes – doesn’t cover repair or replacement to the item that leaked (such as an aquarium)|
|Removing debris||Yes||No – unless contents are damaged by debris or removal process||Yes|
|Damage from renovations||No||No||No|
Several insurance companies that provide landlords insurance coverage in Australia, which you can see in the table below.
Though we don’t compare every available provider in Australia, we simplify your landlord insurance journey. Within minutes, you can compare policies from some of Australia’s top insurers side-by-side, and even purchase cover, all in the one place.
|Landlord building insurance||Landlord contents insurance|
|N.B. This is not an exhaustive list and is subject to change. The list of landlord insurance providers is accurate in August 2019 and sourced from the Insurance Council of Australia.|
As the General Manager of General Insurance at Compare the Market, Stephen Zeller works to make the protection of a homeowner’s most significant financial assets, an easier and more efficient process whilst empowering people with choice. He believes it’s important for landlords to adequately cover their property and belongings against risks that could result in financial loss.
Stephen has more than 30 years of experience in the financial services industry. He is an Allied member of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and ensures any information about insurance products that we publish is accurate and comprehensive.