How do I determine the sum insured for my landlord building insurance?

To determine the sum insured for your landlord building insurance, you generally need to estimate the full cost to rebuild your property from the ground up. This includes demolition costs, site clearance, architect fees, new building materials and labour expenses. It is important to base this on today's rebuilding costs, not the property's market value or purchase price. Many insurers offer online calculators, or you can consult with a professional builder or quantity surveyor for an accurate assessment. Underinsuring your property could mean you are out of pocket if you need to make a claim for a total rebuild.

Does strata insurance cover the building for my investment unit?

If you own an investment unit in a strata complex, the strata insurance policy typically covers the main building structure, common areas and shared facilities. This includes the external walls, roof, common pipes and electrical systems. However, strata insurance usually does not cover the internal fixtures, fittings or landlord-specific risks within your individual unit. You will still need landlord insurance to protect your investment for tenant damage, loss of rent, legal liability and your own contents like carpets, blinds or appliances if supplied.

What factors influence the cost of landlord building insurance?

Several factors influence the cost of your landlord building insurance premium. These include the property's location, construction materials, age of the building and its rebuild value. Your claims history, the level of excess you choose and any additional cover options like flood or rent default will also affect the price. Insurers may also consider security features such as alarms and locks, and the property's proximity to emergency services.

Does landlord building insurance cover an unoccupied or vacant property?

Standard landlord building insurance policies often have specific conditions or exclusions regarding unoccupied or vacant properties. If your rental property remains unoccupied for an extended period, typically 60 or 90 consecutive days, insurers may limit cover, reduce benefits or even void the policy for certain events. If your property is expected to be vacant for longer than your policy's specified limit, you should notify your insurer. They may offer a special endorsement or a different policy to provide continued cover for an unoccupied property.

Compare landlord building insurance quotes

Landlord building insurance cover extends beyond bricks and mortar to include fixed structures like pools and air conditioning.
This insurance provides specific landlord protections not found in standard home building policies.
Check for online discounts. Some providers offer up to 15% off your first year's premium.

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5 of 51 results

Finder Score	Tenant Default and Damage	Loss of Rent	Accidental Damage	Sum Insured Safeguard	Cooling-off Period
9.9 Excellent QBE Landlord Home Insurance	9.9 Excellent	Optional	The lesser of: Up to 24 months of lost rent, or 20% of your sum insured amount			21 days	Discount: Get 10% off when you buy a new policy online. T&Cs apply.	Get a quote View details Compare product selectionCompare	loading
8.7 Great Youi Landlord Building Insurance	8.7 Great	Optional	10% of the buildings sum insured			20 days	Get a quote View details Compare product selectionCompare	loading
8 Great Budget Direct Landlord Building Insurance	8 Great	Optional	10% of the sum insured amount of your property		Optional	21 days	Save 15% on your first year's premium when you buy a home only policy online. T&Cs apply.	Get a quote View details Compare product selectionCompare	loading
7.9 Great Qantas Landlord Building Insurance	7.9 Great	Optional	Up to 10% of your home sum insured	Optional	Optional	21 days	Discount: Earn up to 35,000 Qantas Points for joining by 25 November 2026. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.	Get a quote View details Compare product selectionCompare	loading
6.8 Standard Seniors Landlords Building Insurance	6.8 Standard		The lesser of: 12 months rent, or 10% of your building sum insured, or the lost rent			14 days	Get a quote View details Compare product selectionCompare	loading

Showing 5 of 5 results

Finder Score for landlord insurance

Finder Score assesses more than 40 home and contents landlord insurance products for their price and features, assigning each product a score out of 10.

Read the full methodology

What is landlord building insurance?

Landlord building cover protects the physical structure of your property if it's damaged by an insured event like a natural disaster, fire or your tenant. The following is all considered "the building":

Building

The building itself (e.g. bricks and mortar)

plumbing systems

Electrical cables and plumbing system

Swimming pool

Other permanent structures (e.g. built-in swimming pools and air conditioning)

If you have a furnished or partially furnished property, then you should also consider getting landlord contents insurance. This covers the items you own and keep at your rental.

Do I need landlord building insurance?

Yes, if

You want a financial safeguard for your investment property.
You live in an area where natural disasters are common.
You rely on your property to earn an income.

Possibly not, if

You own a unit in an apartment block since your strata levies should cover the building insurance.

What is covered in landlord building insurance?

Damage from unexpected events

This includes damage from fires (including bushfires), storms, rainwater, floods, escaped water and lightning. Building cover also commonly includes mortgage discharge costs.

Damage caused by tenants

This includes damage caused by visitors, pets and unknown persons. This can protect your property against accidental loss or damage, tenant damage and vandalism or theft.

Loss of rent

If your building is damaged by an insured event and becomes uninhabitable, landlord building insurance can cover your loss of rent for a specific time – often up to a year. It can also cover rent default (if your tenant is unexpectedly unable to pay you rent).

Legal fees

Commonly referred to as legal liability, this covers you for death or bodily injury to other people as well as for damage to other people's property, usually up to $20 or $30 million.

What's excluded from cover?

Landlord building insurance doesn't cover the following:

Regular maintenance
A poorly maintained property
Contents (e.g. the items you keep at the property)
Mould (unless the mould was covered by an insured event)
Roots of trees, shrubs and plants
Building defects
Wear and tear

Damage caused by vermin, insects or rodents
Damage caused by ground movement
Damage caused by movement of the sea
Damage caused by a power surge
Damage related to war

Insurers are unlikely to cover you for bushfires, storms, floods or tsunamis in the first 72 hours of your policy.

Frequently Asked Questions

To determine the sum insured for your landlord building insurance, you generally need to estimate the full cost to rebuild your property from the ground up. This includes demolition costs, site clearance, architect fees, new building materials and labour expenses. It is important to base this on today's rebuilding costs, not the property's market value or purchase price. Many insurers offer online calculators, or you can consult with a professional builder or quantity surveyor for an accurate assessment. Underinsuring your property could mean you are out of pocket if you need to make a claim for a total rebuild.
If you own an investment unit in a strata complex, the strata insurance policy typically covers the main building structure, common areas and shared facilities. This includes the external walls, roof, common pipes and electrical systems. However, strata insurance usually does not cover the internal fixtures, fittings or landlord-specific risks within your individual unit. You will still need landlord insurance to protect your investment for tenant damage, loss of rent, legal liability and your own contents like carpets, blinds or appliances if supplied.
Several factors influence the cost of your landlord building insurance premium. These include the property's location, construction materials, age of the building and its rebuild value. Your claims history, the level of excess you choose and any additional cover options like flood or rent default will also affect the price. Insurers may also consider security features such as alarms and locks, and the property's proximity to emergency services.
Standard landlord building insurance policies often have specific conditions or exclusions regarding unoccupied or vacant properties. If your rental property remains unoccupied for an extended period, typically 60 or 90 consecutive days, insurers may limit cover, reduce benefits or even void the policy for certain events. If your property is expected to be vacant for longer than your policy's specified limit, you should notify your insurer. They may offer a special endorsement or a different policy to provide continued cover for an unoccupied property.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

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Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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Gary Ross has written 520 Finder guides across topics including:

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