Compare landlord insurance quotes

Landlord insurance is either building insurance or combined home and contents insurance with extra cover for risks specific to renting out your property, while home insurance typically doesn’t include cover for risks specific to being a landlord.

The tenant- and renting-related risks that landlord insurance can cover include accidental or malicious damage caused by tenants, rent default and loss of rental income if your property becomes unliveable following an insured event.

Because renting out a property is often considered a commercial activity, these risks are commonly excluded under standard home insurance policies. That means a tenant-related claim may be declined, leaving the landlord to cover the costs themselves.

Landlords could consider specialised landlord insurance that may cover their building, contents (if applicable) or both while also providing protection against risks associated with renting out a property.

A landlord looking to safeguard a free-standing house or building (that isn’t covered by a strata policy) can take out building insurance to protect the walls, roof and property fencing. This policy could be combined with contents insurance to cover furniture or other contents provided to the tenant with the home. You may also find that some insurers offer automatic contents cover within a landlord’s insurance policy.

It may also be worth considering optional cover for risks such as flood damage (where available), loss of rent or tenant default, depending on your property’s location and circumstances.

The best landlord insurance policy for you will depend on your circumstances and the type of investment home you have. Each type of cover has something to offer, and you might consider each of the following circumstances:

• Landlord building insurance could suit you if you’re just looking to cover the home building and other outbuildings at your insured address. It won’t cover any items you own in the investment home like appliances, curtains, carpets or furniture.
• Landlord contents insurance is worth considering if you’re leasing out a strata title home like an apartment or a townhouse. Generally, these types of buildings are protected by your body corporate’s strata insurance, so you might only need cover for the items you own inside your investment home.
• Landlord combined cover could suit you if you’re an investment homeowner who wants both building insurance and contents insurance in one policy.

No – the contents portion of cover under a landlord’s insurance policy is for the landlord’s belongings that are inside the insured address, such as:

• furnishings
• carpets
• blinds
• appliances, and other items you own inside the home.

It does not cover any tenant’s belongings, so your tenants would need to purchase renters insurance to cover their contents inside the rented property.

Yes, in some cases, but your options may be more limited and your cover may differ from a standard landlord insurance policy. Many standard landlord insurance policies don’t cover short-term or holiday rentals. Traditional landlord insurance policies are often designed for long-term tenants on fixed-term leases and may require a valid tenancy agreement to be in place at the time of a claim. If you lease your property as short-stay accommodation (such as Airbnb), you may need to seek out a specialist policy or provider.

The average indicative cost of landlord insurance for a property insured for both building and contents is $2,168, based on Compare the Market quote pricing data.¹ However, costs vary widely depending on the property address, and the level of cover selected. The good news for landlords is that premiums may be tax deductible when the property is rented out or genuinely available for rent.

The cost of landlord insurance is different for every person. Some factors that can affect the cost of your landlord insurance policy include:

• The location of your property. Many Australian homes are vulnerable to a range of natural disasters such as floods, bushfires, cyclones, storm surges, subsidence and erosion (including sinkholes). If your property is in a hazard-prone area, this will reflect on the cost of your landlord insurance policy.
• Your suburb’s crime rate. The higher the crime rate in your property’s area, the more your insurance policy will likely cost.
• Sum insured. How much your building and contents are insured for should you need to rebuild or replace them generally influences your premium.
• Excess chosen: Opting for a higher excess will generally lower your ongoing premium.

Yes, landlord insurance premiums are generally tax-deductible, along with a range of other expenses associated with renting out your property. According to Australian Taxation Office guidance, these may include:

• advertising for new tenants
• property management fees
• council rates
• water bills
• land tax
• cleaning, gardening and lawn mowing bills
• pest control expenses
• property repairs and maintenance
• real estate agent fees and commissions
• interest charged on your home loan
• legal expenses for evicting a defaulting tenant, taking court action for loss of rental income or defending a damages claim brought on by a third party for injuries suffered at your rental property.

Before making any decisions about your tax return, consider speaking with an accountant or other professional.

No, it’s not compulsory in Australia to have landlord insurance or home and contents insurance for your tenanted property. However, lenders may require you to have it as a condition of your mortgage when you’re buying or refinancing your investment property.

Accurately calculate the rebuild cost of your property, keep an inventory of all your belongings and understand the rental income the property generates. This can help you choose a sum insured that provides enough protection to help maintain cash flow if you experience a covered loss.

As an Australian landlord, fires and floods are among the big risks to your investment property. Catastrophic events like these can leave you with a massive repair bill, and you could find yourself unable to afford your property’s repair and rebuilding costs. This is why you need to accurately calculate the full replacement value of your property and take inventory of all your belongings there. Here are a few things you can do to achieve this:

• Document everything you own – your rental property, permanent fixtures, furnishings and any contents residing within the property – for insurance purposes. Videos are good for this.
• Keep the receipts and take photos of all your items leased with the property to make sure there’s a record of your ownership.
• Work out the value of your property and contents. If you compare plans through Compare the Market, the online calculator built into our journey can provide you with a guide.
• Consider getting a rebuild valuation from a professional surveyor or builder. Remember, this is different from a property valuation, which estimates the property’s market value or sale price.

The costs of building materials, fixtures and fittings can increase over time. That’s why having an updated valuation before renewing your building insurance can be worthwhile.