How much does landlord insurance cost?

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.

Provider	Home & Contents (Combined)	Buildings Cover Only
Budget Direct	$1,544.97	$1,221.34	Get quote
Youi	$1,681.56	$1,384.96	Get quote
QBE	$2,236.73	$1,795.92	Get quote
Qantas	$1,444.54	$1,172.21	More info
ANZ	$1,843.97	$1,618	More info
AAMI	$1,820.80	$1,468.36	More info
Bendigo Bank	$2,520.80	$1,688.28	More info
Bupa	$2,340	$1,922	More info
Catholic Church	$2,738.71	$2,278.87	More info
CommBank	$3,124.58	$2,443.60	More info
Honey	$2,231.38	$1,855.50	More info
Landlord Select	$2,440.97	n/a	More info
Over Fifty	$3,081.05	$2,278.87	More info
St. George	$2,498.04	$2,050.38	More info
Virgin	$1,560.43	$1,233.58	More info
Westpac	$2,498.04	$2,050.38	More info

• Learn more about our methodology

  • 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

Name	Product	Tenant Default and Damage	Loss of Rent	Accidental Damage	Sum Insured Safeguard	Cooling-off Period	Cheapest way to pay
Budget Direct Landlord Home & Contents Insurance		Optional	10% of the sum insured amount of your property		Optional	21 days	Annually	Save 30% on your first year's premium when you buy a combined home and contents policy online. T&Cs apply.	Get a quote View details	Compare	loading Fetching your data...
Youi Landlord Building and Contents Insurance		Optional	The reasonable rental amount for up to 12 months			20 days	Annually	Cover for investment property from fire, theft and numerous weather events.	Get a quote View details	Compare	loading Fetching your data...
QBE Landlord Home & Contents Insurance			The lesser of: Up to 24 months of lost rent, or 20% of your sum insured amount			21 days	Annually	Get 10% off for buying a combined policy, plus an additional 10% in the first year for signing up online. T&Cs apply.	Get a quote View details	Compare	loading Fetching your data...
Seniors Landlords Building & Contents Insurance			The lesser of: 12 months rent, or 10% of your building sum insured, or the lost rent			14 days	Annually	Save 5% when you buy a combined building and contents policy. The discount will apply to the first 12 months of your Seniors Landlords Insurance policy. The discount will be reapplied for 12 months each time your Seniors Landlords Insurance policy is renewed. T&Cs apply.	Get a quote View details	Compare	loading Fetching your data...

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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:

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

• Is landlord insurance worth it?

  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.

• What can a landlord claim for on insurance?

  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:

  1. 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.
  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 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.

• Is landlord insurance compulsory in NSW?

  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.

• Can you claim landlord insurance on tax?

  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.