Compare Home and Contents Insurance for Landlords

Requiring tenants to pay a bond is standard practice in Australia. In most cases, a bond is often equal to four weeks of rent – though this can differ in some states depending on the weekly rent.

Generally, when it’s time for tenants to leave the rental property, they’ll do so without significant damage, or with minor damage that can be covered by the cost of the bond. But in the case of major damage, that bond money could be eaten up very quickly. Plus, if repairs take more than a few weeks, you could miss out on incoming rent. Landlord Insurance could help with repairs that exceed bond payments. It could also help compensate you for missed rental income. 

While Landlord Insurance is typically included under the umbrella of Home and Contents Insurance, there are lots of inclusions as well as optional extras.

You might also come across the terms Landlord Contents Insurance, Landlord Building Insurance, and Landlord Combined Insurance. As always, the Product Disclosure Statement (PDS) will clarify what is actually included in your policy.

Here are some of the usual inclusions:

• storm damage
• fire damage
• earthquakes
• tenant default
• theft or vandalism
• legal liability cover (protection in the event of a claim someone makes after an injury or damage on the property)
• impact damage (if an aircraft, aerial device, vehicle or animal collides with and damages the property)
• escape of liquid (the sudden leakage from pipes or household appliances which cause damage to the property).

Keep in mind that some of these items could be included as optional extras, so check your PDS for further details.

Your policy will likely come with exclusions, which are outlined in the Product Disclosure Statement. These depend on your policy and the level of cover you choose. Typical exclusions on a Landlord Insurance Policy can include:

• normal wear and tear
• movements of the sea
• vermin
• war

If there’s risk associated with renting out your property for long-term leases, you can only imagine the potential risk of renting out to dozens (or even hundreds) of people every year. Many providers don’t offer Landlord Insurance for homeowners who rent out their property for short periods through sites like Airbnb and Stayz. Luckily, Short-Term Rental Insurance should do the trick here, as should the insurance that comes included under your Airbnb fees.

A lot of contingencies that affect your Landlord Insurance choices and costs, like weather and building construction, vary from state to state. Before you start comparing policies, get to know how Landlord Insurance works in your state: 

• South Australia 
• Victoria 
• ACT 
• Queensland 
• New South Wales