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Landlord insurance in Queensland
Written by
Tina Sendin
Edited by
Andrew Kemp
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 is landlord insurance?
Landlord insurance is a specialised type of home insurance designed to protect homeowners from financial losses linked to renting out an investment property. Landlord insurance could cover damage to your property’s building or contents caused by tenants, legal liability and loss of rental income following an insured event. Depending on your policy, you may also be covered for unfortunate cases of renters stealing or maliciously damaging your property, and if they stop paying rent or abandon your place unexpectedly.
Is landlord insurance compulsory in Queensland (Qld)?
Landlord insurance isn’t compulsory in Qld. While not legally mandatory anywhere in Australia, taking out landlord insurance is common in Qld, as the state’s tempestuous weather is infamous for causing widespread disruption to people’s lives and damaging their property. Apart from natural disasters, unfortunate incidents such as tenants damaging your property or contents and defaulting on their rent payments – along with loss of rental income due to insured events and legal liability helps make landlord insurance a worthwhile addition to your home insurance.
And don’t forget the peace of mind that comes with landlord insurance, which means that even if you sign a renter who’s a bit too clumsy for their own good you’ve got cover in place.
What does landlord insurance commonly cover?
Landlord insurance generally covers damage to your property’s structure or any contents you allow your tenants to use. It also covers loss of rental income because of insured events like fire and legal liability if someone gets injured on your rental. Depending on your policy, it could also cover you from tenants defaulting on their rental payments, stealing or causing malicious damage to your property or contents.
Most landlord insurance policies fall under the following categories:
- Landlord building insurance helps cover damage to the structural aspects of your property, including garages and sheds. This may be an optional add-on to standard building cover.
- Landlord contents insurance helps cover loss or damage to your belongings within the property. This may come as an optional cover on top of a contents insurance policy.
- Combined landlord building and contents insurance helps cover both your property’s structure and your belongings. This could be an optional extra to a combined home and contents insurance policy.
Getting down to brass tacks, landlord insurance can cover some or all of the following:
Accidental or malicious damage caused by tenants
Accidental damage caused by a tenant’s sudden or unintentional acts (like spilling red wine on the carpet or accidental breakage of your rental’s sink) could be covered by landlord insurance. Depending on your policy, theft and malicious acts (such as vandalism) by the renter may also be covered – or added to it for an additional premium.
Natural disasters such as bushfires and cyclones
Landlord insurance cover could protect you from financial losses due to natural disasters like cyclones and floods, which are common in Qld. It could also cover damages caused by storms, rainwater, lightning and bushfires to your rental property.
Just a heads up, though: it’s worth checking your policy, as flood cover could already be part of standard landlord insurance as an insured event or could be an optional add-on.
Loss of rent following damage to property
Landlord insurance could cover the loss of rental income if your property becomes uninhabitable because of damage from insured events. So, if a burst pipe, storm surge or fire leaves your property unliveable for a while, landlord cover could take care of you until your property’s suitable for occupancy again.
It’s important to remember that this is different from rent default, which happens when tenants fail to pay or suddenly leave your property without prior notice.
Rent default by tenants
If your tenant is unable to pay their rent or leaves unexpectedly, depending on the policy, landlord insurance could cover the loss of rental income up to a specified limit until rental income resumes. This could be part of standard landlord insurance, or an upgraded cover for an additional premium.
Legal expenses for an approved claim
The legal expenses benefit could reimburse you up to a certain amount, say $3,000. This type of cover could take care of your legal expenses and other associated costs when there are tenant disputes like evictions or recovering unpaid rent – provided your insurer accepts your claim.
If things get ugly with tenants and you need to go down the legal route, this cover might also help you recover some of the costs connected to solicitor fees, tribunal fees and hearing attendance.
Legal liability cover
Landlord insurance may cover your legal liability and provide compensation – up to a specified limit, such as $30 million – if someone experiences injury, death or damage to their belongings at your rental property.
Damage caused by tenants’ pets
Landlord cover could take care of your rental property if tenants’ pets cause damage to it. It’s worth double-checking your policy, as insurers vary in how they assess and cover pet damage, although some policies explicitly include it.
Replacing locks and stolen keys
Landlord insurance generally covers lock replacements if your house keys are stolen from the agent or tenant. You could also be covered for cylinders to external doors and windows. Coverage limits can apply, though.
Helpful tip
Insurers generally don’t cover damage due to gradual deterioration, and a poorly maintained property can deteriorate even faster. Ensure that you conduct regular inspections, maintenance and repairs and keep a record of it all. Not only is this record useful come tax time it also helps you avoid surprises when you need to make a claim.
Adrian Bennett
General Manager for General Insurance
What affects the cost of landlord insurance in Qld?
Qld’s risk profile – specifically around extreme weather and crime rates – as well as your property’s location, age and build could all impact the cost of landlord insurance in the state. Your policy’s details – such as excess amount, coverage level and any additional inclusions – could also affect your premiums.
Qld’s risk profile
Qld’s high crime rates and reputation for extreme weather events put properties in the Sunshine State at a higher risk to insure – if not making certain areas uninsurable altogether.
Rental income
Most landlord insurance policies will cover your lost rental income if a tenant defaults. The more rental income a policy has to cover, the more your premium will usually be.
Excess
A higher excess generally means a lower premium. But you might need to make sure you can pay more come claim time – given that an excess is how much you’ll need to pay out of your own pocket when you make a claim.
Scope of coverage
Premium payments can cost more if you’re going for a more comprehensive policy, say one with more coverage for floods, rental default, malicious damage and other optional extras.
Frequently asked questions
Is landlord insurance tax deductible?
Yes. You can claim an immediate deduction for the cost of landlord insurance, including cover for building, contents, public liability and loss of rent. If your rental property is also used as a holiday home some exclusions on what you can fully claim from the Australian Taxation Office, may apply.
What are some common exclusions for landlord insurance?
Common exclusions to landlord insurance include property damage due to lack of maintenance, wear and tear, as well as any that comes from work or changes the landlord makes. Insurers usually have a comprehensive list of general exclusions in their respective Product Disclosure Statements.
What is public liability cover?
Public liability cover is protection for landlords against financial losses if someone suffers injury, death or damage to their belongings at the rental property – and the property owner is found liable. This will typically include legal fees, medical expenses and reimbursements for compensation.
Let’s say a tenant or their guest, a prospective tenant or pretty much anyone who visits your investment property gets injured, has their property damaged or loses their life while on your premises. If they decide to sue or make a claim against you as a result, public liability or legal liability cover could help with paying compensation, medical and legal costs up to a certain sum as per the policy limits, say $20 million.
Keep in mind that some insurers may not provide public or legal liability cover if you only have landlord contents insurance. Read the relevant Product Disclosure Statement to be sure of what’s covered.
What’s the difference between landlord insurance and building insurance?
The main difference between the two is that building insurance takes care of the house’s physical structure while landlord insurance protects the homeowner from tenant-related risks like loss of rental income, malicious damage caused by renters and legal liability.
Building insurance, also known as home insurance, can cover the repair costs if your home is damaged because of an insured event. Landlord insurance sometimes includes building insurance, contents insurance or a combination of both – plus provisions specifically related to being a landlord, like property damage by tenants or loss of rental income.
The specifics of each of these vary from policy to policy. It all comes down to what your insurer offers, so it’s best to speak with them and read the policy Product Disclosure Statement.
How do I file a landlord insurance claim?
You can file a claim directly with your insurer, usually on the phone, online or through your insurer’s mobile app. Be prepared to provide evidence like photos, videos, repair quotes, tenancy or rental agreements, or a police report (if there’s theft or malicious damage) could help.
The process for a home insurance claim for a landlord might look like this:
- Ensure everyone is safe and, if possible, take reasonable steps to prevent further loss or damage. Call emergency services if you think it’s necessary to make your property safe.
- Inform the police if there’s theft, attempted theft, malicious damage or loss of property involved. Police reports can end up being a vital component of your claim.
- Gather evidence such as photographs of the damage or owner’s receipts, which can help your insurer process your claim faster. It’s also important to hold off on any repairs unless it’s to prevent further loss of damage.
- Lodge your claim with your insurer over the phone, online or through the app as soon as possible, giving them adequate detail so they can kick-start the claims process. Some policies might come with time limits to lodge claims.
How long will it usually take for me to get a response to my claim?
Insurers must respond to a claim within 10 business days of it being lodged. They might get back to you requesting more information related to the claim. The time it takes to finalise a claim can vary depending on a number of factors such as your insurer’s claim process, the complexity of the claim, how much detail you provide and how promptly you respond. You should receive a progress update from your insurer every 20 days.
Note that exceptional circumstances like storms and bushfires might mean longer processing times due to the understandably large volume of related claims coming in.
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