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Landlord Insurance in Queensland
Written by
Kervin Mathew
Edited by
Ellie Garran
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?
If you’re a landlord, landlord insurance is designed to protect you from financial losses.
Depending on your policy, it might cover you for property damage or loss of rental income resulting from property damage, as well as damage to your own belongings within the rental property. Plus, landlord insurance costs can be tax deductible.
Is landlord insurance compulsory in Queensland?
As with the rest of Australia, landlord insurance isn’t mandatory in Queensland. It’s up to you whether you want to take it out or not. That said, it’s common for landlords in Queensland to take out landlord insurance as the state’s tempestuous weather is infamous for the widespread damage it causes to lives and property.
What does landlord insurance commonly cover?
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.
- Landlord contents insurance helps cover loss or damage to your belongings within the property.
- Combined landlord building and contents insurance helps cover both your property’s structure and your belongings.
Getting down to brass tacks, landlord insurance can cover some or all of the following, either as part of a standard policy or optional extras:
Accidental or malicious damage caused by tenants
Landlord insurance can cover you for accidental damage, including certain fire-related mishaps or wilful damage caused by tenants or their guests to your property and belongings.
Natural disasters such as bushfires and cyclones
Queensland is no stranger to natural disasters like cyclones and bushfires. Damage caused by storms, rainwater, lightning, and bushfires can be covered by landlord building insurance.
Loss of rent following damage to property
A burst water main or an act of extreme vandalism may leave your property unliveable for a while. Landlord insurance could cover you for lost rental income until your property’s suitable for occupancy again.
Rent default by tenants
If your tenant is unable to make their rent, landlord insurance can cover the loss of rental income up to a specified limit until rental payments resume.
Legal expenses for an approved claim
If things get ugly with tenants and you need to go the legal route, your legal expenses and other associated costs may be covered, provided your insurer accepts your claim.
Public liability cover
You can be covered up to a certain limit for any compensation you have to pay if you’re held liable for damage to someone’s possessions, bodily injury, or deaths that happen on your property.
Damage caused by tenants’ pets
They’re as cute and cuddly as they come, but pets can be a clumsy bunch, causing accidental damage such as chewed skirting boards, dislodged curtain rails or ruined flooring. Luckily, landlord insurance can cover this as well.
Replacing locks and stolen keys
If a thief breaks into your property or steals your housekeys, you can be covered for replacement locks or cylinders to external doors and windows. Coverage limits can apply, though.
What affects the cost of landlord insurance in QLD?
Premiums tend to lean toward the higher side in Queensland. It could come down to these factors.
Queensland’s risk profile
Queensland’s high crime rates and reputation for extreme weather events put properties in the Sunshine State at a higher risk to insure or make them 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
An excess is how much you’ll need to pay out of your own pocket when you make a claim. A higher excess generally means a lower premium. You’ll just have to pay more come claim time.
Scope of coverage
Premium payments can pinch if you’re going for a policy with the lot. That is, more coverage for floods, rental default, malicious damage, and other optional extras.
How do Queensland tenancy laws affect landlords?
Smoke alarms
Smoke alarms can save both lives and property. Landlords must ensure that smoke alarms are installed and maintained to meet the minimum health and safety requirements indicated by the Queensland Fire Department.
Maintenance and repairs
Landlords need to ensure their rental property is fit to live in and meets minimum housing standards by conducting routine inspections and repairs where necessary. Tenants are expected to request repairs as needed.
Renting with pets
Tenants must get formal landlord approval to keep pets, except working dogs or service dogs, at the rental property. They’re responsible for any damages or nuisance caused by the pet. Landlords can also specify conditions for keeping pets on the premises.
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
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.
What are some common exclusions for landlord insurance?
Insurers usually have a comprehensive list of general exclusions in their respective product disclosure statements (PDS). Here are a couple of honourable mentions:
Damage because the property was kept in a poor condition
If your property is in a poor condition, your insurance might not provide the protection you need when the time comes.
To make sure you get a payment at claim time, look out for leaks, holes, damage, rust, or wood rot usually found in the roof, gutters, windows, floors, fences, or other parts of your property.
More serious indicators of a poorly maintained property can include damaged foundations, walls, steps, flooring, ceilings, gates and fences.
And finally, keep an eye out for maybe the worst of all – pest infestations. While Queensland can boast a more diverse insect population than the rest of Australia, this flex doesn’t necessarily work for homeowners: think termites, ants and bed bugs. And who could forget rodents!
Damage the landlord intentionally caused
Any damage, loss or legal liability incurred because of a landlord’s intentional actions is generally not covered by insurance. This condition applies to any person, including a tenant, acting with the consent of a landlord, a landlord’s family or household member.
What is public liability cover?
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 the sum of $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 policy’s product disclosure statement (PDS) to be sure of what’s covered.
What’s the difference between landlord insurance and building insurance?
This one’s pretty simple. 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, plus provisions specifically related to being a landlord, like property damage by tenants or loss of rental income.
The specifics of each of these varies 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 (PDS).
How do I file a claim and how long will it usually take?
Should you find yourself in a situation where you think you may need to make a home insurance claim, here’s what you need to do:
- Make sure 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 to 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 or online 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.
From start to finish, the general timeframe for a claim is between four and 12 months. However, it’s up to your insurer to make sure that your claim moves forward at a reasonable pace.
As a rule of thumb, insurers must respond to a claim within 10 business days of the claim being lodged. They might get back to you requesting more information related to the claim. After you’ve provided this information, insurers can take an additional 10 business days to let you know if they’ve accepted your claim.
It helps to remember that the processing time for a claim can vary depending on your insurer, how much detail you provide, and the complexity of the claim. For instance, 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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