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Landlord Insurance in the ACT
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Written by
Kervin Mathew
Edited by
Ellie GarranOur range of 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 and some may only be available over the phone or on the website. Learn more.
What is landlord insurance?
Landlord insurance is about protecting you from the unexpected risks that can come with renting out a property: from missed rent due to your property being unliveable to organising replacement locks and keys. Landlord insurance can sometimes come with home or building insurance, but it may also be a standalone product.
Is landlord insurance compulsory in the ACT?
No. Like the rest of Australia, landlord insurance is not compulsory in the ACT. As a landlord, though, safeguarding one of your most valuable assets can give you much-needed peace of mind. It could also potentially save you thousands of dollars in expenses if the unexpected happens.
What does landlord insurance commonly cover in the ACT?
When taking out landlord insurance, you may come across options like landlord building (or home), landlord contents or combined landlord building and contents. The ‘landlord’ part of all of these deals specifically with protecting you from loss of income on your investment properties. Let’s take a closer look at what landlord insurance might cover.
Remember, these and other types of coverage may come standard with the policy or be included as optional extras. To see what a policy covers, it can be worth sitting down with the product disclosure statement (PDS) and a nice cup of tea.
Tenant default
If your tenant defaults on their rent payments, your policy can make up for your loss in rental income. This coverage might come with conditions such as a limit of 15 weeks.
Loss of rent
When an insured event like a storm makes your property unliveable, your policy might be able to cover you for loss of rental income while the building is repaired or rebuilt. This could be for up to 12 months.
Theft or malicious damage
Unfortunately, occasionally a tenant might steal from your property or cause malicious damage. You can claim these losses on your policy. Remember to file a police report to support your claim.
Legal liability protection
Tenants can claim against you or sue you if an accident on your rental property results in death or injury or damages their property. Legal liability cover can help with compensation amounts, lawyer fees and other legal costs.
Natural disaster damage
If your house is damaged by flood, fire or storm, you can get covered for reconstruction costs and replacing insured items. Some events, such as floods, can be included as optional cover.
Accidental damage
Your property and contents can be covered for mishaps such as a scorch mark made by a hot pan on a benchtop, or broken glass, ceramic, or sanitary fixtures.
What should I consider when taking out landlord insurance in ACT?
Inclusions and exclusions
Put together a wish list of what you’re after as you look around, and check that PDS for all the juicy details.
Premiums and excess
Balancing budget and risk can be tricky, so it might help to consider what you can manage regularly and if disaster strikes.
Furnishings and contents
If you choose to rent out your property with added touches like furniture and whitegoods, you may need to look into additional policies, like contents insurance, to cover these too.
Unexpected events
Think about the likelihood of natural disasters in the area, pets in the household, and whether you want legal liability protection.
What affects the cost of landlord insurance in the ACT?
Crime in the area
The risks that come with having a property in an area with a high crime rate, such as burglary and vandalism, can impact your insurance premiums.
Bushfire risk
Given the ACT is the Bush Capital, bushfires are a common occurrence. That means the chance of you claiming could go up, with your premium in tow.
Tweaking your excess
Depending on your insurer and policy, you might be able to reduce your premium a bit by choosing to pay a higher excess on claims.
Your property’s age and condition
Age may just be a number, but it’s a number that matters to insurers. Older properties can be costlier to insure if they’re poorly maintained or approaching dereliction.
How does landlord insurance work differently in the ACT?
Tenancy laws
ACT’s tenancy laws can affect your decision to get landlord insurance. Look into the territory’s rental laws to stay updated on renting guidelines.1For more information, see ACT Government – Rental laws in the ACT
Cover for pet damage
Given you can’t unreasonably refuse a tenant keeping a pet at a property in the ACT, it might be a good idea to have landlord insurance that covers any damage Fluffy or Fido does.
Keeping the property in good nick
You’re legally obliged to keep the place clean, safe and secure so it’s habitable. Moreover, damage caused by a tenant might not be covered if it’s deemed that you ignored repairs and maintenance.
Valid reasons to break leases
Insurance could help manage situations involving domestic violence or hardship, which can sometimes allow tenants to break their lease without compensation.
Helpful tip:
With the ACT loosening up laws around tenants and pet ownership, it might be a good move to get accidental damage cover so that your property isn’t completely at the mercy of Toto the jumpy Jack Russell Terrier. But don’t worry; you won’t have to do too much digging to find a policy that does the trick; we can help you sniff out an insurer who offers this kind of coverage.
Adrian Bennett
General Manager for General Insurance at iSelect
Frequently asked questions
Is landlord insurance tax deductible?
Yes. You can claim an immediate deduction on expenses related to insuring your rental property. This can include cover for building, contents, public liability and loss of rent.
What does landlord insurance not commonly cover in the ACT?
In the ACT, any insurance you have in relation to the property may be invalidated if the property doesn’t legally comply with the safe installation of ceiling insulation.
There are also general exclusions under every landlord insurance policy, such as loss or damage caused by:
- faulty workmanship, design or manufacture
- erosion, landslide or any other earth movement
- pest infestations, including mice, rats, fleas, cockroaches, termites, bedbugs, and lice
- roots of trees, shrubs, or plants, or tree lopping or felling.
Some classes of rental properties, such as hotels, motels, boarding houses, transportable homes, or home units that are part of strata titles, might not be covered under landlord insurance.
You can get into the specifics of what’s not covered under your policy by studying the product disclosure statement (PDS).
What’s the difference between home and landlord insurance?
While both insurance types are designed to protect buildings and contents, home insurance is typically for owner-occupied homes.
On the other hand, landlord insurance offers additional protection specifically from rental situations such as damages caused by a tenant and loss of rental income. You could also be covered if you have legal expenses associated with tenants being injured on your property or with evictions.
What kind of insurance do I need for an investment property?
It’s important to assess your situation before you decide on the kind of insurance you need for your investment property. You could start by considering whether you need both building and contents insurance.
If you’re renting out a furnished home, contents insurance might come in handy. It can cover items like carpets, furniture, furnishings, appliances like dishwashers and stove tops, potted plants, gardening equipment, and more.
Compare landlord insurance
Want to make sure your prized asset doesn’t turn into a liability? We can help you compare a range of landlord insurance policies from different providers right away.
iSelect does not compare all home and contents insurers or policies in the market. The availability of policies may change from time to time. Not all policies available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all policies compared by iSelect will be available to all customers. Some policies are only available from iSelect’s call centre or website. A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
iSelect General Pty Ltd ABN 90 131 798 126, AFS Licence Number 334115. Any advice provided by iSelect on this website is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.
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- 1.For more information, see ACT Government – Rental laws in the ACT