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Compare Home Insurance for Landlords
Written by
Tina Sendin
Edited by
Laura Crowden
Reviewed by
Adrian BennettOur Home and Contents partners
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers. Learn more.
What’s landlord insurance?
Landlord insurance is a type of home insurance designed specifically for people renting out their property. It’s got your back for when tenants (or their visitors) cause any damage to your property. It might even cover you if your tenants don’t pay up or you find yourself in a bit of a legal pickle while renting out your place.1For more information, see Moneysmart – Home insurance
Should I get landlord insurance?
While landlord insurance isn’t compulsory in Australia, it can help protect you financially from the risks of renting out a property. If the idea of a tenant defaulting on their rent or needing to move them out for repairs feels a bit too stressful, landlord insurance can take the edge off these risks.
How do I compare landlord insurance?
Here’s what to keep in mind when sizing up landlord insurance:
What’s covered and what’s not
Getting a good squiz at what’s included and excluded is always a good starting point. It’s worth comparing what the cover’s like when it comes to tenant damage, missed rent, or anything you’re gun-shy about.
Policy limits and payouts
Does the cover stack up with your property’s value and contents? It makes sense to check the max payout limits for different claims – you wouldn’t want to be left out of pocket!
Excess amounts
How much excess will you need to cough up if you have to make a claim? Opting for a higher excess might mean lower premiums, so it’s good to weigh it up.
Optional extras
Things like pet damage aren’t usually part of standard policies, but they can be a lifesaver if things go south with a four-legged tenant. You could have the most responsible tenants in the world, but their pets might be a whole other story!
Customer service
What do the reviews say? It’s prudent to have a look at how easy their claims process is. You want an insurer that’s got your back when things hit the fan.
State-specific rental laws
Each state’s got its own rental rules, so it’s a good idea to make sure your policy lines up with the laws of where your property’s located.
Landlord insurance explained
Learn more about how landlord insurance works in this short video.
Helpful tip:
You’ll also want to review what kind of rules an insurance policy has around vacancies. Some insurers might charge an extra excess when you make a claim if the property has been left without a tenant for too long; others might refuse to cover it altogether if it’s been empty for months. So make sure you read your policy’s product disclosure statement (PDS) to understand exactly what conditions apply.
Natasha Etschmann
Investor & Personal Finance Educator
Which factors can affect the cost of my landlord insurance?
Level of insurance
Landlord insurance can help cover physical damage to your property, and sometimes to its contents, too. If your property is rented out fully or partly furnished, it’s worth choosing a policy that includes contents insurance as this can cover items like carpets, curtains, and appliances.
Location
If your property is located in an area with a higher crime rate, or one that’s prone to natural disasters, this could impact the cost of your policy. You can call your local council to find out if your property is located in a bushfire or flood zone.
Property condition
Regular property inspections can help you catch little problems early, saving you from pricey repairs down the track or having to make a claim – which could bump up your premium come renewal time. Prevention is always better than cure. In this context, that means staying on top of things like leaks and cracks before they become major headaches!
Sum insured
The cost of rebuilding or replacing your property and contents if you were to do it today – known as the sum insured – impacts the price of your landlord insurance. The higher the sum insured, the more your premium’s likely to be.
Landlord insurance in every state
Frequently asked questions
What does landlord insurance typically cover?
There are different types of home insurance, and a landlord-specific version of each.
Landlord building insurance
This one’s all about the structure of your property. It can usually cover things like your walls, roof, floors, and even fixtures like cabinets and built-in wardrobes. If your property cops damage from events like a fire, storm, or even vandals, this policy’s got your back. Building insurance doesn’t usually cover the stuff inside, though – just the physical building itself. Think of it as the bones of your property getting protected.
Landlord contents insurance
Now, contents only insurance covers the things inside the property that belong to you, and is for landlords who rent out their properties fully or partly furnished. Things like furniture, curtains, carpets, and appliances if you’ve provided for tenants to use. If one of your tenants throws a wild party and trashes your couch, or if a burst pipe ruins your carpets, contents insurance could step in. Here’s the catch: typically, it won’t cover the tenant’s belongings. They’ll need their own renters’ insurance for that.
Landlord combined insurance
As the name suggests, this one’s the whole package. It combines both building and contents insurance into a single policy, so you’re covered for the lot – your property’s structure, its outbuildings, and the things you’ve put inside. It’s handy if you want total peace of mind and like to keep all your cover under one roof (literally).
What isn’t typically covered by landlord insurance?
Your policy will likely come with exclusions, which are outlined in the product disclosure statement (PDS). 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
What type of landlord insurance policy do I need?
Got an unfurnished property? Building insurance might be enough. But throw in some furniture or appliances, and you might want to look at landlord contents insurance, or even a combined home and contents policy!
Also, if you’re renting out a strata title place like an apartment or townhouse, landlord contents only insurance is worth a look. The building itself is usually covered by your body corporate’s strata insurance, so you’ll probably just need cover for the stuff you own inside your investment property.
The most suitable choice comes down to how much skin you’ve got in the game!
My tenants already pay a bond – how is this different?
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.Moneysmart – Rental bonds and leases
Generally, when it’s time for tenants to leave the rental property, they’ll do so without significant damage, or with only 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 from a new tenant. Landlord insurance can help with repairs that exceed bond payments. It could also help compensate you for missed rental income.
Can I get landlord insurance for short-term rentals?
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. Most 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.
Does landlord insurance differ by state in Australia?
Yes, landlord insurance varies in each state because they have their own tenancy laws, risks, and property market. For instance, what’s covered in Queensland could be different from Victoria in terms of risk profile. The north is more prone to cyclones while down south has more bushfires. So what your insurer will look for in terms of your property’s location varies in terms of the risks within your area.
Let’s just say it’s prudent to check the specifics on your state. Here are some helpful pages for you:
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