Compare landlord insurance

What does landlord insurance cover?

Damage from unexpected eventsFor example, if a fire destroys your property, landlord insurance can pay to repair or rebuild it. All insurers cover a long list of unexpected events including fires, bushfires, storms, escaped water and theft.

Loss of rentFor example, a burst pipe damages your property and the tenant can't live there. In most cases, landlord insurance covers up to (the lesser of) 1 year's lost rent, or 10% of the building sum insured.

Legal feesIt can cover legal expenses for up to $30 million if a tenant sues you after an incident at your property. Many policies also offer optional legal expenses cover, to protect you in case you have to evict a tenant.

• Is landlord insurance compulsory?

  No, there is no legal obligation for a landlord to take out insurance. However, some lenders require you to take out a policy before approving your application for a loan.

• What's the best landlord insurance?

  The best landlord insurance policy is the one that suits your needs. To help you decide, we've put together a selection of top landlord insurance picks based on popularity, unique features, perks and other factors.

• What impacts the cost of landlord insurance?

  • Location. Homes in riskier areas such as flood zones will cost more.
  • Value. The more you insure your building and contents for, the higher your premiums tend to be.
  • The type of insurance. Combined building and contents policies tend to cost more because they cover the building and the contents inside it.
  • The building materials. Buildings made with sturdier materials like concrete will be cheaper to insure since they're less likely to be damaged.
  • Add-ons. If you add on optional extras, such as rent default, you can usually expect to pay a little more.
  • Specific risks. For example, if your property is surrounded by tall trees, it might be at risk of impact damage.
  • Pets. If your tenant has pets, the risk of damage goes up and so will the cost of your insurance.
  • Security. Insurers will often lower your premiums if you have alarm systems in place.

• What isn't covered by landlord insurance?

  When you compare landlord insurance policies, make sure to take a close look at the list of general exclusions. Typical exclusions include the following:

  • Poor housekeeping by your tenants, such as unhygienic or untidy living habits
  • Rust, wear and tear, mould or mildew
  • Loss or damage caused by insects or vermin
  • Repairs carried out by the tenant with your consent

  For a more complete picture of policy exclusions, it's important to read the PDS. Additionally, you can speak with a landlord insurance provider directly.

• Is landlord insurance tax-deductible?

  Yes. In most cases, you can claim your landlord insurance premiums as tax deductions.

• When should I take out landlord insurance?

  Don't wait until you experience a problem with a tenant to think about purchasing cover. The best time to buy a policy is immediately after you settle on your investment property.

• Will I be covered if my tenant sublets?

  Subletting can be tricky regarding landlord insurance. You may have some cover for the building and you probably won't be covered for damage to any contents (if the place is furnished). However, you won't be covered if the subletting tenant doesn't pay rent.

• How do I cover my granny flat?

  If you own a granny flat and are leasing it out for some form of income, then landlord insurance should work for you.

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