Landlord Insurance in Queensland

What is Landlord Insurance? 

Landlord Insurance is for … wait for it … landlords. That’s to say, it’s meant to protect landlords, not to protect people from landlords (sorry, landlords). If you have property that you’re renting out to tenants, 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. On top of this, you can usually insure your own belongings within the rental property. Plus, there’s one more incentive to get it: Landlord Insurance costs can be tax deductible. 

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.  

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 does Landlord Insurance work in Queensland? 

As in 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. And it makes sense why – it might be able to protect you from costly financial losses.  

If there’s the possibility of cyclones, hail or flooding, it might be reassuring to be covered for damage from those events. But, as with any policy, the coverage can vary a lot, so it’s always worth double checking what you’re getting. 

What can Landlord Insurance cover? 

Most Landlord Insurance Policies will cover some or all of the following, either as part of a standard policy or optional extras: 

• accidental or malicious damage to your property caused by tenants
• natural disasters such as floods 
• loss of rent following damage to property 
• rent default by tenants 
• legal expenses for an approved claim 
• public liability cover 
• damage caused by tenants’ pets 
• replacing locks or keys. 

What are some common exclusions for Landlord Insurance?

Damage caused by
your tenants’ pets 

Damage because the property
was kept in poor condition 

Damage the landlord
intentionally caused 

How much cover might I need? 

There’s no one-size-fits-all answer for this. Every landlord is a little different: some only own a single unit and others have a whole portfolio of expensive properties. Obviously, they’re going to need different things when it comes to insurance. 

Still, there are a few questions you can ask yourself while you look for a policy. This will help you find something suitable for your needs. 

• How much do I need to cover lost rental income?
  If you lose rental income as a result of damage to the property, most insurers will cover you while the damage is being repaired. Some insurers will even cover the cost for months. When selecting your Landlord Insurance, think about how long you might need an insurer to step in and cover these rental payments.  
• What kind of limits are acceptable to me?
  Landlord Insurance Policies usually insure you against theft or malicious damage caused by tenants or their visitors. They will usually cover your rental property and any of your contents inside that rental property, up to a certain limit. For instance, they might pay a maximum of $150,000 for home repairs. So read your policy’s Product Disclosure Statement (PDS) carefully and find out which kind of limits apply. 
• Do I need Building Insurance as well?
  Some Landlord Insurance policies include Building Insurance, so, first, check whether yours does. If you own an apartment or a property under a strata title, your Building Insurance could be covered by the body corporate, so it’s worth checking that as well. If neither of those possibilities apply to you, have a think about what could potentially go wrong with your house, how much it could set you back financially, and how you want to prepare.  

How much does Landlord Insurance cost in QLD? 

How much you end up paying for Landlord Insurance might vary quite a bit. Unfortunately, Home and Contents Policies, including Landlord Insurance Policies, tend to be higher in Queensland than elsewhere in Australia – it could have something to do with our wild weather. But basically, you won’t know for sure until you start shopping around and getting quotes. Some of the following factors might have some impact on the price:

Rental Income

Most Landlord Insurance will cover your lost rental income if a tenant defaults. The more rental income a policy has to cover, the more the premium will usually cost.

Excess

An excess is how much you’ll need to pay out of your own pocket when you make a claim. A higher excess will generally give you a lower premium. The only drawback? You’ll have to pay more come claim time. Like most things in life, it’s a trade-off. 

Location

Where your property is located might affect how much you pay – especially if your cover comes with Building Insurance. Unfortunately, some postcodes are just more prone to disasters, vandalism and theft than others. They’re riskier for insurers to cover, so insurers might ask for higher premiums in exchange for taking on this risk. 

Insurers might also look at a slew of other things when they work out your premium, including the age and value of your property and whether you’re getting a house or unit insured. If you’re curious about how they’ve calculated your premium, it never hurts to ask them directly. 

What should I consider when purchasing Landlord Insurance in QLD? 

Being a landlord comes with all sorts of risks and rewards. This is particularly true if you live in Queensland: you’ll always have people looking to rent a beautiful, sunny home, but you’ll also need to keep an eye out for extreme weather. 

Unfortunately, Queensland is no stranger when it comes to natural disasters. From cyclones to floods to bushfires, Queenslanders have endured devastating damage to their lives and homes. North Queensland has been particularly affected by cyclones. 

This means properties located in disaster-prone areas are at higher risk of damage caused by unforeseen events – and without an effective Insurance Policy in place, landlords of these properties could face significant out-of-pocket costs. 

If you live in a higher risk area, be sure to check whether your Landlord Insurance covers you for natural disasters and which disasters are covered by your policy. You’ll also want to weigh up the price of your premium before committing to anything, as homes in disaster-prone areas can cost more to insure.

How can I purchase Landlord Insurance in Queensland? 

There are a ton of different insurers in Australia who sell Landlord Insurance. Doing a quick comparison of some of the different policies on offer can help you find a great deal without doing hours of legwork. 
 
iSelect can also help you here. With us, you can compare Landlord Insurance Policies in just a few clicks. Give it a try today – we’ll get you a list of options in no time!