Broker-arranged
Landlord insurance
Cover for the risks of renting out a property: damage to the building and your contents, lost rent after an insured event, and claims from tenants or visitors. Landlord policies differ a lot, so a licensed broker reviews your property and arranges quotes for you.
- Houses, units and townhouses
- One short form, then a licensed broker takes it from there
What is landlord insurance?
Landlord insurance is cover for a property you rent to tenants. It usually combines building or contents cover with loss of rent and legal liability, and some policies add cover for tenant damage and rent default. Standard home insurance is written for a home you live in, so check whether it covers a tenanted property before relying on it.
The ATO lists building, contents, public liability and loss of rent insurance among the rental expenses you can claim an immediate deduction for, for the period the property is rented or genuinely available for rent.
What it covers, and what it doesn’t
Cover varies more between landlord policies than most people expect, so the Product Disclosure Statement (PDS) is the final word.
Often covered
- The building. Fire, storm, water damage and other insured events, if you own the building.
- Your contents. Carpets, curtains, blinds and appliances you supply.
- Loss of rent. Rent while the property can’t be lived in after an insured event.
- Malicious damage by tenants. Deliberate damage, in many policies.
- Legal liability. A tenant or visitor is injured at the property and you’re liable.
Often not covered
- Accidental damage by tenants. Some policies exclude it, or offer it as an option.
- Wear and tear. Gradual deterioration and maintenance.
- Rent default, unless you add it. Conditions apply.
- The tenant’s own belongings. Tenants need their own contents cover.
- Rent arrears that existed before the policy started.
What one insurer’s policy includes
To show how the pieces fit together, here’s how Allianz describes its landlord insurance. Other insurers’ limits and options differ.
| Feature | Allianz Landlord Insurance |
|---|---|
| Loss of rent | Up to 12 months after an insured event, while the property can’t be lived in. |
| Tenant damage | Malicious or intentional damage is covered. Accidental damage and negligence by tenants are not. |
| Legal liability | Up to $20 million. |
| Rent default (optional) | Up to 15 weeks, capped at $10,000 of lost rent per period of insurance, plus up to $3,000 legal expenses per claim. Needs a written lease, and doesn’t apply if rent was in arrears at the start. |
What to check before you buy
Where the bond ends and insurance begins
A rental bond is the tenant’s money, held by a state authority as security. In NSW, for example, NSW Fair Trading holds it, and you claim it through Rental Bonds Online if the tenant owes money for a legitimate reason.
- Small unpaid rent or cleaning costs.Usually covered by a bond claim.
- Rent owed beyond the bond, or a long vacancy after a fire.That’s where rent default and loss of rent cover come in.
- Major damage to the building.A building or landlord policy, or the body corporate’s policy for a strata unit.
How to get landlord insurance through us
Landlord insurance questions
Is landlord insurance tax deductible?
The ATO lists building, contents, public liability and loss of rent insurance as rental expenses you can claim an immediate deduction for, for the period the property is rented or genuinely available for rent. Building insurance already included in body corporate fees can’t be claimed separately.
Does landlord insurance cover tenants not paying rent?
Only if the policy includes rent default cover, which is often optional. It usually has a cap on weeks and dollars, needs a written lease, and won’t apply if rent was already in arrears when cover started.
Does landlord insurance cover damage by tenants?
Many policies cover malicious or intentional damage by tenants. Accidental damage and negligence may be excluded or offered as an option, so check the PDS.
Do I need landlord insurance for a strata unit?
The body corporate insures the building and common property, so you don’t insure the building yourself. Landlord cover for a unit focuses on your contents, loss of rent and liability.
Why is landlord insurance arranged by a broker?
Landlord policies vary widely in tenant damage, rent default and strata cover, so a licensed broker reviews your property and arranges suitable quotes rather than us quoting online.
What insurance do I need as a landlord?
Usually a landlord policy covering the building (if you own it), your contents, loss of rent and legal liability, with tenant damage and rent default as options. For a unit, the body corporate insures the building, so your policy focuses on contents, rent and liability.
How much does landlord insurance cost?
It depends on the property’s rebuild value, location, construction, whether it’s a house or a unit, and the options you add, such as rent default. There are no prices on this page; a broker arranges quotes for your property.
Keep reading
More broker-arranged cover
Sources
Landlord insurance