Budget Direct Landlord Insurance Review

Our Verdict

• Budget Direct landlord insurance comes with a 30% online discount. That's about as good an online offer as you'll get, similar to other providers such as Virgin and Domain.
• It gives you $1,000 towards replacing locks — that's $500 more than some insurers including Youi and Domain.

• Its policies are underwritten by Auto & General Insurance Company Limited who also underwrite Virgin and Qantas, meaning they're quite similar.

_{Review by our insurance and innovations editor Gary Ross Hunter}

Current offer for Budget Direct landlord insurance

Deal

30% online discount on new home and contents landlord insurance

Save 30% on your first year's premium when you purchase a new combined home and contents landlord insurance policy cover online. T&Cs apply.

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Get landlord insurance quotes from Budget Direct

What does Budget Direct landlord insurance cover?

There are three levels of landlord cover available with Budget Direct: building insurance, contents insurance, and combined building and contents insurance.

Here's some of the main events a policy can cover you for:

It's underwritten by Auto & General Insurance Company Limited and comes with a cooling-off period of 21 days. This means if you want to cancel within this timeframe from taking out a policy, you won't be charged, as long as you haven't made a claim. You'll also need to pay an excess when you make a claim.

Budget Direct landlord insurance features

Standard features

We've highlighted some of the features that Budget Direct will cover you for if you make a claim for an insured event like a fire, storm or theft.

• Open air contents cover
• Replacement of locks and stolen keys
• Lost rental income and damage to some content
• Modifications to your home to support paraplegia or quadriplegia
• Food spoilage

Optional add-ons

Like many other insurers, Budget Direct lets you update your landlord cover with the following protections:

• Tenant default
• Flood cover
• Theft and malicious damage by tenants
• Sum insured safeguard

Exclusions

Budget Direct's general exclusions are similar to other insurers. Here's some of the main events you won't be covered for:

• Action of the sea
• Items covered by an insurance policy taken out by a body corporate or similar body
• Wear and tear
• A property that has been unoccupied for longer than 90 consecutive days

• Inherent defects
• Asbestos
• Tree roots
• Breaking the law

Make sure you read Budget Direct's PDS for a full list of general exclusions.

Budget Direct landlord insurance complaints

We looked at home insurance complaint data from the Australian Financial Complaints Authority (AFCA) between July to December 2020. The data breaks down different underwriters and compares their business size to the number of complaints processed.

When comparing insurers, keep in mind that insurers with a larger market share serve more customers so can potentially get more complaints.

Here's an overview of how Budget Direct (which is underwritten by Hollard) did. It includes other brands underwritten by Hollard so keep in mind that the total number of complaints is not necessarily all for Budget Direct:

Here are some things we noticed about Budget Direct and their underwriter:

• Budget Direct could be a good option if you value good customer service. It had significantly less complaints lodged compared to Westpac, who are of a similar size.
• It didn't get many complaints at all in the period we looked at – a total of 2 – which suggests customers are happy with its service.

Bottom line about Budget Direct landlord insurance

Budget Direct is good if you want an affordable policy with one of Australia's most popular insurers. It has very few complaints and covers you for the basics, though if you want to get covered for extras like tenant default, you'll need to pay extra.

To compare Budget Direct's landlord insurance policies side-by-side with other providers, you can head here.

FAQs about Budget Direct landlord insurance

• Who is eligible for a Budget Direct landlord insurance policy?

  To be eligible, you need to be at least 16 years of age and have an Australian mailing address (or have one in the next 30 days) and reside or own property in Australia. Policies are generally not suitable for:

  • Homes in the Northern Territory or above the Tropic of Capricorn (excluding the Greater Rockhampton area)
  • Hotels and other multi-occupancy dwellings
  • Caravans, cars, trailers, mobile homes or shipping containers
  • Homes that have asbestos roofs
  • Homes that are under construction and not at lock-up stage
  • Anyone who has been convicted of arson or fraud or has had their previous insurance denied due to fraud

• Do I have legal liability with Budget Direct?

  Yes. All policies have a limit of $20,000,000 from any legal claims and costs, and extends to your building if you are required to pay compensation for death or injury on your property, and landlord contents that cause death or injury.

• Am I covered for floods with Budget Direct?

  Yes, Budget Direct landlord insurance offers flood coverage as an optional extra.

• How do I make a claim with Budget Direct landlord insurance?

  Once you have contacted any required emergency services and taken every precaution to prevent further loss, damage or injury, contact Budget Direct 24/7 either online or over the phone to begin the claims process and access your policy benefits.

  Ph: 1800 069 336

  Website: budgetdirect.com.au

• What excess do I need to pay?

  For each claim you make you may be required to pay an excess (unless otherwise outlined in your policy). For example, if a fire has damaged your house, you would need to claim for the damage and pay an excess.

Budget Direct landlord insurance reviews

If you've held or currently hold a Budget Direct landlord insurance policy, we'd love to hear from you. Your reviews help other Australians decide if Budget Direct is right for them. Some reviews are from a survey commissioned by Finder.