Landlord insurance in Queensland (QLD)

Getting landlord insurance can help you protect your Queensland investment property against the unexpected, like natural disasters including bushfires, flooding and even cyclones which can severely damage your home. There’s also the possibility of accidental or malicious damage from tenants, though accidental damage may only be covered by an optional extra at an additional cost. Without a suitable landlord insurance policy, you may need to pay for repairs yourself.

Landlord home insurance (also known as building insurance) may protect your property’s walls, roof and driveway. Additionally, landlord contents insurance can protect your furniture or other belongings in your rental property (but not those of your tenants).

For peace of mind, it’s important to understand what is covered when unforeseen events occur. You may like to consider a landlord policy that covers your rental property for:

• Natural disaster damage. This might include cover for damage caused by storms, cyclones or fire.
• Legal liability cover. This might provide cover if you are liable following the death or injury to someone or damage to their belongings at the insured address.
• Tenant damage or theft. This may include accidental damage or malicious acts, vandalism or theft.
• Tenant default. Having rent default cover may protect you from the loss of rental income when a tenant fails to pay their rent.

Depending on your insurer, these benefits may be included automatically or available as optional cover (at an additional cost). Always check the PDS to understand exactly what your policy entails and whether a policy is right for you.

Other optional extras that you may want to consider include:

• Electric motor burnout cover. If the motor of an appliance under 10 years old burns out, you may be covered for some of the costs if it needs to be repaired or replaced.
• Flood cover. Many parts of Queensland are vulnerable to flooding. This add-on can cover you for losses if a flood damages your tenanted building or contents.

Knowing what cover is included is important, but so is understanding what might be excluded so you’re not caught out if you need to make a landlord insurance claim. Common exclusions may include:

• General wear and tear. Typically, insurance policies ill only cover unexpected events. This means things like worn out carpets or a poorly maintained leaking roof may not be covered.
• Purchasing while an embargo is in place. Insurers may place an embargo over a certain area due to a known or ongoing event. For example, if a major flood threatens your town, you may be unable to purchase a new policy. That’s why it’s important to purchase a landlord insurance policy as soon as possible to avoid getting caught out.
• Purchasing after a loss has occurred. You’re only covered from the day listed on your Certificate of Insurance. This means you can’t claim for losses (e.g. damage or theft) that happened before you purchased your policy.
• Preventable damages. Typically, issues that could have been prevented are not covered. For example, damage caused by mould would not have happened if a shower leak was fixed when it was reported by the tenant. There may be exceptions if the damage is caused by an insured event, like mould caused by flooding for people who have flood cover.
• Damage to your tenant’s belongings. While your policy can cover your building and your belongings, any tenants living on the property won’t be covered. They will need to purchase their own contents policy to protect their belongings.

Landlord insurance premiums will vary depending on the insurer and your individual circumstances. A few factors that may influence how much you pay include:

• Your property’s location. For example, if the home is in a flood zone or vulnerable to disasters such as cyclones or erosion, your insurance premium may go up.
• The crime rate. Your premium may be higher if your property is in a high-crime area, as you’re considered more likely to claim.
• Sum insured. This is how much your building and contents are insured for. Naturally, the more it will cost to rebuild or replace your property, the higher your premium will be.

Different insurers will also offer different benefits and quotes for their policies. Compare your options with our online comparison tool to search for a policy that works for you.

No, it’s not compulsory to purchase landlord insurance in Queensland, or anywhere in Australia. However, you may want to protect your tenanted property against any loss or damage caused by insured events. Without landlord insurance, you will typically have to pay these costs out-of-pocket.