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Landlord Insurance in South Australia
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?
Owning an investment property can be a significant landmark on one’s financial journey. So, good on you if you do own one! But as with any investment, you’re more than likely to experience a few dips here and there. Landlord insurance can help recover repair and replacement costs if your property is damaged, as well as loss of rental income caused by weather damage or tenant default, theft, and even legal expenses.
Landlord insurance in South Australia
Whether your investment property is in the city of churches or deep in wine country, if you’re a landlord in South Australia, there’s a lot to keep track of. In 2024, the state introduced one of its biggest rental reforms in 30 years. Among other things, the reforms make it easier for tenants to keep pets and tougher for landlords to terminate tenancies. In this light, backing yourself with solid landlord insurance is one way to help safeguard yourself and your property from the unexpected.
What does landlord insurance typically cover in SA?
South Australia follows the rest of the country in terms of landlord insurance types. It depends more on what your situation requires. You can typically choose between:
- landlord building insurance to help cover damage to property including garages and sheds
- landlord contents insurance to help cover loss or damage to your belongings within the property
- combined landlord building and contents insurance to help cover both your property and your belongings.
Be mindful that insurers and their policies may differ in what they offer, and some coverage, say flood or tenant default cover, might be available as optional extras. You can check a policy’s product disclosure statement (PDS) or talk with the insurance provider to get a better idea of how a policy works.
Here are some examples of what can be covered:
Loss of rent
If your property is under repair and unhabitable for a certain period, you could get covered for the rental income you’re missing out on.
Damage or theft by tenants or their guests
Damage, whether accidental or deliberate, caused by your tenants and their guests, can be covered by landlord insurance. Theft can be, too.
Tenant default or lease break
Your policy can cover your net rental income over a limited period if your tenant misses rent payments or vacates your property before their lease expires.
Legal expenses associated with tenant disputes
For situations that require legal intervention, you can get coverage for lawyers’ fees, tribunal fees, and other legal expenses, as well as costs your agent charges you in relation to the legal process.
Replacement locks and stolen keys
If a theft on your property has led to broken locks or stolen keys for external doors or windows on your home, your policy could help cover the necessary cost of replacement.
Explosions
Landlord insurance can help cover loss or damage to buildings and contents caused by explosions and resulting earth movements such as subsidence (sinking land) or mudslides.
What contents and fixtures may landlord insurance cover?
- Carpets and loose floor coverings
- Furnishings and furniture
- Curtains and internal blinds
- Hot water systems and air conditioners
- Fridges and washing machines
It’s worth noting that coverage can vary depending on insurers, such as a limit to how much items can be insured for, as well as a limit to the types of items that can be insured. You can check the policy’s product disclosure statement (PDS) to get into the specifics and see which cover best suits your needs.
What affects the cost of landlord insurance in SA?
How much rent you charge
Because landlord insurance is meant to cover loss of rental income, the more rent you charge, the higher your premiums are likely to be.
Multiple rental properties
You may be able to score a multi-policy discount if you decide to insure your rental properties with the same insurer.
Replacement costs
The cost of replacing items such as flooring, furnishings, carpets, and cabinets can factor into insurance companies deciding how much premium you pay.
Crime rate
If the risk of crimes such as burglary or vandalism is higher in a particular suburb or general area, your insurance premiums are likely to be higher to offset the risk.
Likelihood of extreme weather
The frequency of natural disasters like storms, cyclones, and bushfires increases the likelihood of property damage and in turn insurance premiums. Luckily, SA is known to be less disaster-prone than some other states.
Overall risk
Risk remains an overarching factor that can decide premiums. This can include the condition of your property and even its proximity to a fire station.
What should I consider when taking out landlord insurance in SA?
In 2024, there were significant changes to SA’s rental laws related to charging excessive rent, discrimination and harassment, and more. Here are some notable inclusions.1For more information, see Government of South Australia – Review of SA’s renting laws
Renting with pets
Landlords can’t refuse a tenant’s application to keep a pet without a good reason.
Double notice to end tenancy
Previously 28 days, the notice period for a landlord to end a fixed-term rental agreement is now 60 days.
Domestic abuse protections
Domestic abuse survivors can terminate a tenancy on short notice and change locks and security devices without landlord permission.
Allowing minor alterations or modifications to premises
Landlords can’t unreasonably refuse modifications for mobility or access related to disability or age.
Helpful tip:
You might be on the fence about renting out your property long term, so you may consider going with something more short term. In cases like these, you might need to pay higher premiums or you might not even be covered by landlord insurance. Be sure to check your coverage with your insurer and read up on SA’s regulations on short-term rentals before you make the decision.
Adrian Bennett
General Manager for General Insurance
Frequently asked questions
What isn’t commonly covered by landlord insurance?
The devil is definitely in the details when it comes to landlord insurance. As mentioned, policies between insurers can vary quite a bit, especially when it comes to the things they will and won’t cover.
Most policies, though, share some common exclusions. These usually include:
- Repeat offenders: If your tenant defaults on rent or intentionally damages or steals from your property multiple times under the same lease agreement, you may not be able to claim for it a second time.
- The first four weeks of tenancy: ‘Four weeks’ may as well be the magic number for landlord insurance policies. When you want to claim, you’ll need to have a signed written lease agreement in place for at least four weeks plus have collected rent from your tenant for four consecutive weeks too.
- Items insured under your body corporate: You might not be able to insure and claim loss or damages to common property under your landlord insurance. Your body corporate could have insurance out for it though, so you might want to check in with them.
- Loss or damage due to poor maintenance: Your policy might not cover damage caused by wear and tear due to neglect – like if you’ve been ignoring a dangerously creaky staircase, mould-ridden kitchen walls, or a cranky heating system that results in additional damage to your property.
Again, it’s worth checking what’s not covered on the PDS for any landlord insurance policy you’re considering. This is where you can usually find a list of everything it includes and excludes (within reason).
Is landlord insurance worthwhile?
While landlord insurance isn’t mandatory if you’re renting out a property, you might like to think of it as a way to help protect your investment. After all, you won’t be there regularly to make sure things are okay and, like the Spanish Inquisition, nobody expects the unexpected.
You may even have your own experiences as a landlord where, in hindsight, you would have benefited from having landlord insurance. This could have been tenants breaking leases because of changes in their lives, new puppies chewing skirting boards, or needing to get replacement locks after a break-in at your rental property.
Ultimately, landlord insurance can act as a kind of safety net to take some of the risk out of your property investment.
Is landlord insurance tax deductible in Australia?
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.
If you have an accountant or tax agent in your corner, they can guide you further on how you can go about claiming your landlord insurance.
What’s the difference between landlord insurance and building insurance?
Landlord insurance and building insurance (also known as home insurance) cover different things. Landlord insurance tends to focus on instances like malicious or accidental damage caused by tenants or making up lost rent when a tenant can’t pay it. On the other hand, building insurance is more for repairs and replacement of your building if there’s a fire or similarly damaging event.
Just to keep you on your toes, though, there can be some crossover with policies. For instance, your building insurance might have some landlord insurance included.
What property changes do you need to tell your insurer about?
If you make any changes to your property during the period of insurance, you must let the insurer know as soon as possible. Failing to do this could result in your claim being reduced or even refused.
Let your insurer know if you make any changes like these:
- removing or deactivating security devices required by the insurer
- conducting extensive renovations, extensions, alterations, or repairs
- using a part of your property for commercial purposes (other than as a home office)
- appointing or removing a licensed property manager.
You should also let your insurer know if your property has been, or will be, uninhabitable for an ongoing period.
How do I make a landlord insurance claim?
After making sure that you and your property are safe, here’s what you ideally need to do:
- Call the police and report any theft or malicious damage (it will be necessary for claims purposes)
- Contact your insurer, either on the phone or online, and let them know what’s happened.
- Provide required information such as evidence of ownership, documents, letters, and emails that could help with your claim.
- Ask your insurer before you arrange for repairs or engage someone to help, unless it’s necessary to prevent further loss or damage.
- Arrange a time for your insurer to visit your property, assess and inspect property damage or damaged goods before you start cleaning up.
After your claim has been processed, you may need to return any damaged or recovered property that you’ve claimed on and had paid out by your insurer.
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