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How much does landlord insurance cost?

There can be a huge difference in the cost of landlord insurance policies, so be sure to compare.

Updated

Fact checked
Investing in rental property is a great way to bring in some extra income, build equity or both, but it won’t do you any good if you don’t protect your investment. Landlord insurance can help by protecting you from natural disasters, problem tenants and more.

The cost of insurance can differ for every landlord based on the type of property, the sum you want to insure it for and where it is located. From our research, we found that landlord insurance costs $208 a month on average, but keep in mind that this is for a home that is worth $1,000,000, so your costs could be cheaper or more expensive, depending on how much your home is worth.

warningSome landlord insurance policies have temporarily removed benefits such as rent default and a few others because of the pandemic. Make sure to check this with the insurer before deciding on a policy.

Want to protect your investment?

Name Product Fire, storm, & theft damage Tenant Default and Damage Loss of Rent Accidental Damage to Home or Belongings Flood
Budget Direct Landlord Insurance
Optional
Optional
Save 15% on your first year's premium when you purchase cover online. T&Cs apply.
Youi Landlord Insurance
Optional
Cover for investment property from fire, theft and numerous weather events.
Domain Landlords Insurance
Optional
Get 12% off your first year's premium when you purchase a new Landlord Insurance policy online. T&Cs apply.
Virgin Home and Landlord Insurance
Optional
Optional
Save 15% when you purchase online.
St George Landlord Insurance
save up to 25% when you purchase cover online.
Westpac Landlord Insurance
15% off for your first year. Promo code: COVER
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Compare up to 4 providers

Brands still offering landlord insurance

As of 30 September 2020, the following brands are still offering new landlord insurance policies. All existing policies should be respected, but it's best to check directly with your insurer.

ProviderAre they still offering landlord insurance?Are they offering tenant default options?Apply
Youi landlord insurance
  • Yes
  • No
Get quote
Coles landlord insurance
  • Yes
  • No
More info
Westpac landlord insurance
  • Yes
  • No
Get quote
Picture not described
  • Yes
  • No
Get quote
Picture not described
  • Yes
  • Yes
More info
Allianz landlord insurance
  • Yes
  • No
More info
Picture not described
  • No
  • No
More info
Apia landlord insurance
  • Yes
  • Yes
More info
CHU landlord insurance
  • Yes
  • No
More info
Picture not described
  • Yes
  • No
More info
NRMA landlord insurance
  • Yes
  • No
More info
RACV landlord insurance
  • Yes
  • No
More info
real insurance
  • Yes
  • No
More info
SGUA landlord insurance
  • Yes
  • No
More info
Suncorp landlord insurance
  • Yes
  • Yes
More info
Picture not described
  • Yes
  • In some cases
More info
Picture not described
  • Yes
  • No
Get quote

How much does landlord insurance cost?

The cost of landlord insurance can vary based on where the property is located, the type of property you are renting (such as a house or a unit) and how secure the building is. Even your choice of insurer can have a dramatic effect on how much you pay.

The following table shows just how dramatically your landlord insurance costs can differ from one insurer to the next.

These prices are based on the same 3-bedroom house in NSW, but that doesn’t mean the more expensive insurers in this example will be the most expensive one for your particular property. Each property is different and each insurer has a different way of calculating risk.

MonthlyYearly

Budget Direct

$155.39$1,574.54
virgin money logo

Virgin Money

$158.48$1,609.78
Westpac car insurance

Westpac

$190.65$2,287.84

GIO

$253.70$2,718.28

Woolworths

$194.85$2,152.13
Suncorp logo new

Suncorp

$269.88$2,682.11

How much is that as a percentage of your rental income?

Using the example from the table, you can get landlord insurance on a 3-bedroom house in Sydney, NSW for as little as $155.39 per month.

If you fetched $1,000 per week in rent, as per the example using the 3-bedroom home in Baulkham Hills, that would equal $4,345 per month in rental income.

So that means you would be paying 6.5% of your rental income on landlord insurance:

$155.39 ➗ $4,345 〓 3.6%

That’s a small price to pay considering how much you stand to lose if a fire destroys your entire home.

What can a landlord claim for?

As a landlord, you have many of the same risks as other homeowners, plus a few more related to your tenants and your income. Landlord insurance can protect you for all of it. Here are some of the most common reasons you might claim, according to speciality landlord insurer, Terri Scheer:

  1. Loss of rental income. According to Terri Scheer, more than one third of all claims occur when tenants default on their rent. Landlord insurance could help you claim back some of that lost revenue. There are specific conditions that need to be met and you'll need to check with your insurer what circumstances you'll be able to use this option
  2. Damage to your building or contents. This can include accidental damage like the tenant banging up your walls while moving a couch or malicious damage like a tenant that vandalises your property to get back at you for something. Not all policies cover accidents, but some will for an extra charge.
  3. Water damage. This refers to water that escapes from burst or leaking pipes or from leaking appliances. If the tenant caused the leak due to an accident, you may not be covered unless you have additional accident cover.
  4. A tenant’s death. A tenant’s passing could create a host of expenses for you, including finding a place for the tenant's property and losing out on rent while the person’s affairs are put in order. Landlord insurance can help you with all of it.

Picture: Unsplash

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