Finder research has found that landlord insurance may cost $186 per month on average in one location in NSW.
Keep in mind that actual costs will vary depending on multiple factors, such as the value of your property and the comprehensiveness of your plan.
The insurance provider you pick can also make a big difference – we found a swing of more than $1,600 per year in the cost of a home and contents policy.
How much does landlord insurance cost?
We've compared 15+ insurers side-by-side so you can see the difference in price between buying a combined policy, which would cover the building and your contents (if the property is furnished), and a standalone building-only policy.
It's important to remember that this is a sample quote for this specific house. The cost will most likely differ based on the aspects of your property.
We obtained these landlord insurance quotes in May 2023 for the same 3-bedroom home in Concord, Sydney, NSW (2137). The 3-bedroom, 1-story, freestanding house was built in 2000.
It sits on flat ground and has brick veneer walls, a terracotta tiled roof, no verandas and windows secured by deadlocks.
We chose $600,000 worth of building cover and $100,000 worth of contents cover with an excess of $1,000.
The property accrues $1,000 a week in rent.
Keep in mind, the more expensive insurers in the example above will be the most expensive one for your particular property. Each property is different and each insurer has a different way of calculating risk.
Compare landlord insurance and protect your investment
Finder survey: How often do people compare or switch their landlord insurance?
Response
Male
Female
Once a year
3.57%
3.28%
I never compare or switch
3.01%
2.59%
Every 2 yrs
2.44%
1.03%
Once every 3+ yrs
1.32%
2.07%
More than once a year
0.19%
0.17%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
What affects the cost of landlord insurance?
The cost of landlord insurance can vary based on multiple factors. These include:
Where the property is located. You'll likely pay more for your policy if you're in a high-risk area (particularly if your property has a heightened risk of fires, floods or cyclones; or thefts)
The type of property you're renting. A house typically costs more to insure than a unit, due to the higher rebuild costs
How secure the property is. If you have good quality security features installed, you might be eligible for a lower premium
Your policy's excess. The excess is the amount you need to pay upfront to make a claim. It varies a lot for landlord insurance – anything from $100 to as much as $10k. By choosing a higher excess you can lower your ongoing insurance costs.
Whether or not you choose policy add-ons, such as cover for rent defaults and legal expenses.
Additionally, your choice of insurer can have a significant impact on how much you could pay. This is demonstrated by the table below, which is based on landlord home and contents (combined) cover. Finder sourced quotes for a 3-bedroom home in a metropolitan area of NSW.
Landlord insurance costs as a percentage of your rental income: An example
Using the example from the table above, you could get landlord cover from just $120.37 per month with Qantas. Let's say, as in the example using the 3-bedroom home in Concord, you earn around $4,000 per month in rental income.
So, that means you would be paying 3.01% of your rental income on landlord insurance:
$120.37 ➗ $4,000 〓 3.009%
You may consider if this is a small price to pay considering how much you stand to lose if your entire property was destroyed by an insurable event and you didn't hold insurance.
Frequently asked questions
As a landlord, your property is exposed to all the risks of home ownership at a normal household – and some more on top.
If something unexpected happened to your property, would you be able to comfortably cover those costs? If not, then landlord insurance may be worth it.
The right landlord insurance can safeguard your rental income and mean you can avoid paying out-of-pocket for repairs or replacements if something goes wrong.
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. Some of the most common reasons you might claim, include:
Loss of rental income, or rent default. Landlord insurance could help you claim back some 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.
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.
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.
A tenant's death. A tenant's passing could involve 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.
No, there's no legal requirement for landlords to have landlord insurance – either in NSW or other states or territories. However some mortgage lenders may require you to hold insurance as a condition of your home loan.
In general, yes. You can claim landlord insurance premiums as a tax deduction. The same may go for legal costs if you need to evict a tenant. Tax isn't straightforward, so it may be best to speak with a legal professional, such as an accountant, about your individual circumstances.
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146).
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Would a claim for a landlord insurance event affect the premium of the landlord insurance or the house and contents insurance?
Hi Neil, depending on the claim there’s a chance it could affect both.