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Last Updated 23/12/2024
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Written by

Kervin Mathew

Last Updated 23/12/2024

What changed?

Moderate rewrite, updated content structure, added new content and repurposed existing content 
Our aim is to help you make better informed decisions. That’s why iSelect’s content is produced in accordance with our fact-checking and editorial guidelines.

Edited by

Ellie Garran

Reviewed by

Adrian Bennett

Find out more about how we make money.

View our Privacy Policy.

Our range of 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 and some may only be available over the phone or on the website. Learn more.

Is landlord insurance compulsory in Victoria? 

You could say it’s not compulsory in the same way a cup of takeaway coffee doesn’t need a lid. 

But as with any investment, your rental property comes with its own set of risks: tenant default, damage from tenants or their guests, public liability, the list could go on and on. Landlord insurance can help offset these risks by minimising the potential financial losses should risk turn to reality. Also, landlord insurance may be a requirement for banks and lenders if you have a mortgage on your rental property. 

Ultimately, you probably want to enjoy the feeling of being a landlord, just as you would sipping a piping hot flat white with the peace of mind of knowing that you’re ‘covered’ for any nasty spills. 

What does landlord insurance typically cover in Victoria? 

To set the scene, let’s start with the types of landlord insurance policies you can get and what they cover. 

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 building’s structure and your belongings.

Let’s go over the cast of usual suspects (insurable events) and how things pan out in insurance terms. 

Property damage from natural disasters 

Landlord insurance can help cover damage to property caused by bushfires, storms, and sometimes floods (depending on your policy), which can all be part of living in Victoria.  

Loss of rental income 

This could happen one of two ways: if your property is rendered unliveable due to damage or if your tenant defaults on their rent. Either way, landlord insurance may be able to cover both scenarios. 

When things with your tenants don’t quite go amicably and need legal intervention, you can likely get coverage for tribunal fees, legal expenses (including lawyer fees), and agent fees. 

Liability protection if someone gets injured on your property 

If a claim is made against you for an injury, death, or damage to possessions that happened on your property, you could be covered for some or all of that cost. 

Theft and intentional or malicious damage 

Say your tenant steals your belongings or intentionally damages your property, insurance might cover you up to a certain amount. 

Before choosing a policy, it’s important to remember that some of these events are covered only under optional extras, and coverage limits for certain items may vary from insurer to insurer. 

What contents and fixtures may landlord insurance cover? 

Carpets and loose floor coverings

Furnishing curtains and internal blinds

White goods (like fridges and washing machines)

Furniture & appliances (if you’re renting the place as furnished)

Check the policy’s product disclosure statement (PDS) if you’re looking to insure something specific. Insurers can differ in terms of what they cover, coverage limits for each item and any conditions that apply.  

What affects the cost of landlord insurance in Victoria? 

Victoria’s risk profile

The garden state’s savage reputation for bushfires, windstorms and flooding can be one of many reasons premiums are pushed higher, as can your property’s location, value and claims history. 

Compulsory government charges

In addition to the 10% goods and services tax (GST) you pay, Victoria charges insurers 10% stamp duty on each policy sale or renewal. This can seep into your premiums. 

Your level of cover

If you go for landlord insurance with the lot – that is, combined building and contents landlord insurance plus optional extras – you essentially pay for what you get. 

How much excess you pay

Your premium is tied to the excess you agree to pay when you make a claim. Choosing to pay a higher excess can lower your premium payment. 

Bushfires aren’t the only natural disasters that threaten Victorian homes. Sudden downpours can leave your properties flooded. So be mindful that flood cover is usually an optional extra on policies like home or landlord insurance — meaning, it’s something you specifically have to request. 

And yes, this additional cover usually means higher premiums, but it could also save you from hefty repair costs if one of your properties is ever flooded.

Adrian Bennett

General Manager for General Insurance at iSelect

Does landlord insurance work differently in Victoria? 

From the tip of Wilson’s Prom all the way up to Mildura, landlord insurance pretty much works the same way it does across the rest of Australia. That being said, if you read up on Victoria’s tenancy laws, you might gain a better understanding of why landlord insurance could be worth considering for your rental property.1For more information, see Consumer Affairs Victoria – Renting 

Pets on the property

Landlords cannot refuse a tenant’s request to keep a pet on premises without good reason, and tenants can be asked to pay for any damages caused by their pets. If it ends up on your plate, landlord insurance could help with that repair bill. 

Family violence

If your tenant needs to break their lease due to family violence and they have a VCAT order, they’re exempted from paying a penalty. You might be able to claim the resulting loss of rental income through landlord insurance. 

Frequently asked questions

How much should I insure my rental property for?

Is landlord insurance tax deductible?

Is landlord insurance always offered as a separate policy?

What’s the difference between landlord insurance and building insurance?

What doesn’t landlord insurance cover?

What is the typical policy term for landlord insurance in Victoria?

How do I file a claim and how long will it usually take?

Compare landlord insurance in Victoria

Finding a suitable landlord insurance policy in Victoria doesn’t have to be as difficult as taking a guess on Melbourne’s whimsical weather. If you have a rental property that you’d like to insure or you’re just browsing for a better deal, we can help you get started.

Get started on comparing home and contents today!

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iSelect does not compare all home and contents insurers or policies in the market. The availability of policies may change from time to time. Not all policies available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all policies compared by iSelect will be available to all customers. Some policies are only available from iSelect’s call centre or website. A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.

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