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What is landlord insurance?
Landlord insurance is your typical home insurance policy tailored to rental properties and, needless to say, the many things that could go wrong with having one.
Think unexpected events like earthquakes, bushfires, vandalism, theft, and other household accidents, and the undesired impact they can have on your property. In those situations, your landlord insurance policy could be your financial safety net.
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.
Legal expenses from tenant disputes
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.
Helpful tip:

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.
Landlord insurance explained
Listen to our quick rundown of landlord insurance, the number of reasons you might need it, and how to go about the tricky process of narrowing down your choice of insurers.
Frequently asked questions
How much should I insure my rental property for?
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.
Ultimately, it can help to think about covering not just the value of the property but also the rental income you receive for it. FYI: As of June 2024, the median rent in metro Melbourne was $550 a week, while regional Victoria was $450 a week.2Victoria State Government Department of Family, Fairness and Housing – Rental report statistics for June quarter 2024
Further, if you’re concerned about legal fees, like from a tenant or visitor injuring themselves on the premises, you might want to throw in some decent public liability cover too.
Is landlord insurance tax deductible?
In one word, yes. 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.
Is landlord insurance always offered as a separate policy?
Not necessarily. In some cases, you can take out home or contents insurance (or both) on your rental property and your insurer will offer options for landlords as extras. In others, landlord insurance might come as a standalone policy.
Taking out landlord insurance by itself might be the way to go if your rental property is a unit or apartment in a body corporate scheme. At minimum, Victorian owners corporations must get building insurance, along with public liability insurance, for the common property.
Have a look at what your body corporate covers. If you find yourself needing something more, like protection for your furnishings or appliances at the property, landlord insurance might be able to deliver the goods.
What’s the difference between landlord insurance and building insurance?
Your rental property stands to benefit from having both landlord insurance and building insurance. The difference between them comes down to what’s covered.
Landlord insurance tends to focus on the risks specifically related to renting out your property, like damage done by tenants or tenants defaulting on rent.
On the other hand, building insurance can help reduce any financial loss when something undesirable happens to the property, like if it gets damaged in a storm or fire.
Depending on policies and providers, you might see some overlap between landlord and building insurance. Or you might be able to add landlord insurance to your building insurance as an optional extra. Either way, it could be worthwhile to get both types of insurance to help cover you for a range of unexpected eventualities.
What doesn’t landlord insurance cover?
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 is 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.
What is the typical policy term for landlord insurance in Victoria?
Your policy term may be different from the next person’s, however, you tend to see 12 months as a general length. After that point, you might then need to manually renew your landlord insurance, or your insurer might notify you that they will renew it soon, along with recalculating your premium if required.
How do I file a claim and how long will it usually take?
The claims process, though quite straightforward on paper, can be a bit long-winded once you get into the details. So, doing your due diligence like gathering as much relevant information and evidence as possible before you make a claim may help smooth out the process.
Here’s how you’d usually go about things:
- 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.
- Report any theft or malicious damage – A police report may be necessary if your claim is related to stolen or intentionally damaged property.
- 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.
- Wait for the decision – Your insurer is required to respond to your claim within 10 business days. If needed, they can request for more information. From the time that you provide it, your insurer has another 10 business days to either accept or deny your claim.
On the whole, the claims process can take anywhere between four and 12 months. You can ask your insurer to fast-track your claim if your situation is urgent.
Ultimately, 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. 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.
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.

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- 1.For more information, see Consumer Affairs Victoria – Renting
- 2.Victoria State Government Department of Family, Fairness and Housing – Rental report statistics for June quarter 2024