Landlord Insurance In New South Wales Explained

In this article, we’re exploring landlord insurance in New South Wales, including what it means, the benefits of having landlord insurance, and how to find a landlord insurance policy that suits you.

What is landlord insurance?

Landlord insurance is a type of insurance available to you if you’re the landlord of a property¹. It protects you in cases such as your tenant damaging the property, or in some circumstances if they leave without paying the rent.

Do I need landlord insurance if I have building insurance?

Landlord insurance and building insurance are two different types of insurance.

• Landlord insurance: protects you against damage to your rental property (e.g. by tenants), or for losses resulting from things like rent defaults.
• Building insurance: covers you for replacement of your building if it’s destroyed, e.g. in a fire. If your rental property is a unit, building insurance will usually be paid from your strata levies - otherwise you’ll need to take out building insurance for your property¹.

What are the benefits of landlord insurance in New South Wales?

If you’re renting out your property in New South Wales, taking out landlord insurance can give you peace of mind that you’re protected should your property become damaged, or you incur financial losses from your tenants.

Without landlord insurance, you could face significant out-of-pocket expenses, not to mention the stress of having to repair your property if it becomes damaged. Similarly, if your tenants take off without warning, you could be left with the cost and inconvenience of unpaid rent.

What might my landlord insurance cover me for?

There are many different insurers offering landlord insurance in New South Wales. Policy inclusions will vary between these different providers, as well as the individual policies they offer.

Here are just some of the areas that may be covered by a landlord insurance policy:

• Accidental loss or damage to the property
• Malicious damage caused by tenants, their family or visitors
• Insured natural disasters such as fire, storm, rainwater, lightning and earthquake
• Loss of rent following damage to the property
• Rent default by tenant

Before deciding on a policy be sure to read the product disclosure statement for information about coverage and limitations.

How can I purchase landlord insurance  in New South Wales?

Click here to view iSelect’s range of home & contents providers, and select the one which suits you.

Sources:
1. https://www.moneysmart.gov.au/investing/property/