Insure your rental property for the cost of rebuilding it from scratch – rather than its purchase price or market value – and the total cost to replace any contents you’re letting the tenants use, such as carpets, blinds and white goods. It also helps to incorporate the cost of demolition and debris removal into your building sum insured.

Narrowing down how much cover you need is like trying to find the right pair of shoes – it needs to fit just right, or things can get uncomfortable. If the unexpected happens and your cover isn’t enough, you could be in some serious financial trouble. On the other hand, if you have too much cover, you could be paying for more than you need.

Yes, landlord insurance is tax deductible in Vic, as it is anywhere else in Australia. You can claim insurance costs for building, contents, public liability and loss of rent as an immediate tax deduction under the condition that your property is rented out or is available for rent.

Unless you’re a DIY tax whiz, you’re likely to have an accountant who manages your investment income. It’s worth checking in with your accountant, as they can help ensure that your tax returns are filed accurately and that you don’t miss out on tax deductions.

No, landlord insurance isn’t always sold as a separate policy. Often, you can add optional landlord cover on top of standard home or contents insurance (or both) for your rental property. But in some cases, landlord insurance could come as a standalone policy.

The main difference between the two lies in what they cover: building insurance takes care of the house’s physical structure (walls, roof, permanent fixtures and even the shed) while landlord insurance protects the landlord from tenant-related risks like loss of rental income, malicious damage caused by renters and legal liability.

Building insurance (often called home insurance) can help cover repair costs if your property is damaged by events your policy includes. Landlord insurance may be bundled with building insurance, contents insurance or both – along with extras tailored for landlords, like cover for tenant damage or loss of rental income.

Because what’s covered can vary between policies, it really depends on your insurer and the level of cover you choose. It’s always a good idea to check the Product Disclosure Statement and chat with your insurer so you know exactly what you’re getting.

Landlord insurance doesn’t typically cover repeated damages, long periods of unoccupancy or routine maintenance and upkeep. Policies commonly exclude wear and tear, lack of maintenance, pests and some types of mould-related damage.

If you want to know what your policy doesn’t cover, you’ll need to get up close and friendly with the Product Disclosure Statement (PDS). However, to give you a hand as you compare landlord insurance, it’s unlikely you’ll be covered in these cases:

• Homes left unoccupied for too long: Your policy might not cover you if your property is empty for an extended period when damage occurred. The exact limit can differ from insurer to insurer, so be sure to check your PDS.
• Repeated theft or damage by tenant: If your tenant or their visitor damages the property or steals from it more than once while on the same lease agreement, your insurer may not cover it. You might also want to look into why it keeps happening.
• Loss or damage due to your poor maintenance: In Victoria, part of your duties as a landlord are to keep the property in good nick for someone to live there, whether it’s a new build or it’s as old as Old Melbourne Gaol. Additionally, if something gets damaged or completely wrecked in your rental property and it turns out that it hasn’t been looked after by you properly, your insurance is unlikely to cover it.

The typical policy term for landlord insurance in Vic is 12 months. When you’re nearing the end of your policy term, your insurer might notify you that they will renew it soon, along with recalculating your premium if required. At that point, you might want to review and compare policies to make sure you’re still on a policy that suits you.g

rYou can lodge a claim straight with your insurer – either over the phone, online or through their app. It’s a good idea to get supporting evidence ready, like photos, videos, repair quotes, your tenancy agreement or even a police report if there’s been theft or damage.

Here’s how you’d usually go about things:

1. Make sure everyone is safe. Ensure that your tenants are safe and, if possible, reasonable steps are taken to prevent further loss or damage. It’s a good idea to check in with your insurer before conducting emergency repairs.
2. Report any theft or malicious damage. A police report may be necessary if your claim is related to stolen or intentionally damaged property.
3. Contact your insurer and make your claim. Let your insurance company know what’s happened, giving them as much detail as possible. You can ask your insurer anything related to your policy coverage and formally make your claim.
4. Wait for the decision. Your insurer will assess your claim and let you know if they need any further information. The time it takes to process a claim can vary depending on the circumstances.

The claims process can take anywhere from a few days to several months depending on your insurer, how much detail you provide and the complexity of the claim. Exceptional circumstances like storms and bushfires can understandably lead to longer processing times, due to the volume of similar claims coming in at the time.