Landlord Insurance
Landlord insurance relates to the risks of owning a residential rental property. It can include the building, any contents you supply and certain loss of rental income.
Standard home insurance is usually written for owner-occupiers. Once a property is rented out, a landlord policy is often more suitable.
Who this insurance may suit
- Owners of houses rented to long-term tenants
- Unit and apartment investors
- Owners of furnished rentals
- First-time investors
- Landlords using a property manager
Why this cover may be important
Rental properties face risks that owner-occupied homes may not, including malicious damage by tenants and periods without rent.
Lenders often require the building to be insured. Strata owners may also need cover for their landlord contents and liability.
Potential areas of cover
Cover varies between insurers and policies. Depending on the policy, cover may include:
Building
Cover may include damage to the dwelling from events such as fire, storm, impact and burst pipes.
Landlord contents
Carpets, curtains, blinds and appliances you provide may be covered, subject to limits.
Loss of rent
If the property cannot be lived in after insured damage, some policies may pay lost rent for a set period.
Rent default
Optional cover may respond if a tenant stops paying rent and leaves, often with conditions on bond and property management.
Tenant damage
Malicious or intentional damage by tenants may be covered, depending on the policy.
Legal liability
Cover may include claims if a tenant or visitor is injured because of the property's condition.
Common risks
- Storm or water damage between tenancies
- A tenant leaving owing rent
- Malicious damage by a tenant or visitors
- Accidental damage to carpets or fixtures
- Injury caused by a broken step or railing
- Fire making the property unliveable
What may not be covered
Every policy has exclusions, limits and conditions. Some common considerations include:
- Normal wear and tear is not insurable and is usually dealt with through the bond.
- Some cover depends on regular inspections, a written lease and rent being collected properly.
- Short-term or holiday rentals often need a specific policy.
- Flood and gradual damage such as leaks and mould may be excluded or limited.
- Strata buildings are usually insured by the owners corporation, so unit owners insure contents and liability.
Always read the Product Disclosure Statement and policy wording. Your broker can explain how they apply to you.
Why work with Tasman Insurance Group
- We take time to understand your business or circumstances before discussing cover.
- Where applicable, we approach suitable insurers and compare the options available.
- We explain exclusions, limits and excesses in plain English before you decide.
- We help with changes during the year, renewals and claims.
Landlord Insurance FAQs
Is home insurance enough for a rental property?
Home policies are often written for owner-occupiers and may not cover tenant-related risks. A landlord policy is usually designed for rented properties.
Does landlord insurance cover rent if a tenant stops paying?
Rent default is available on some policies, often with conditions such as using a property manager and following arrears procedures. A broker can talk through your situation.
I own a strata unit. What do I need?
The owners corporation usually insures the building. As a landlord you may consider cover for your contents, loss of rent and liability inside the unit.
Are holiday rentals covered?
Short-stay and holiday rentals often fall outside standard landlord policies. Specific options may be available.
Related insurance solutions
Home & Contents Insurance
Cover options for the home you own and the belongings inside it, arranged together or separately.
Learn more about Home & Contents InsuranceCommercial Property Insurance
Cover options for commercial buildings, warehouses and premises you own, lease out or occupy.
Learn more about Commercial Property InsurancePublic & Product Liability Insurance
Cover that may respond if your business activities or products cause injury to someone or damage to their property.
Learn more about Public & Product Liability Insurance
Ready to talk about landlord insurance?
Request a quote or call us. We'll ask about your circumstances and discuss the options available.