What's the difference between landlord insurance and building insurance?

Landlord insurance covers loss of rent and malicious damage by tenants. It also covers stuff covered by home insurance, like damage or accidents to the property. Building insurance covers the cost of repairing or rebuilding the actual structure of the house or building from stuff like fire, storm, or burglary.

Is it worth getting landlord building insurance?

For sure landlord building insurance is worth it. Especially if you're renting out an investment property at arms length. Landlord building insurance provides specific protections for landlords, which is super useful if you're not at the property regularly.

Is Landlord Insurance compulsory?

Landlord insurance is not compulsory, but it's a good idea if you rent a place out. It is really good protection from risks like loss of rent and damage by tenants. Landlord building insurance is the same - not compulsory but a good idea.

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Landlord building insurance protects your rental property if it is damaged or destroyed.
You probably need landlord building insurance if you do not own a unit and want financial security.
It can cover unexpected damage, tenant damage, legal fees and more.

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5 of 46 results

Finder Score	Tenant Default and Damage	Loss of Rent	Accidental Damage	Sum Insured Safeguard	Cooling-off Period
Finder Score Not scored yet Youi Landlord Building Insurance	Finder Score Not scored yet	Optional	10% of the buildings sum insured			20 days	Get a quote More info Compare product selectionCompare	loading
Finder Score Not scored yet Budget Direct Landlord Building Insurance	Finder Score Not scored yet	Optional	10% of the sum insured amount of your property	Optional	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 More info Compare product selectionCompare	loading
Finder Score Not scored yet QBE Landlord Home Insurance	Finder Score Not scored yet	Optional	The lesser of: Up to 24 months of lost rent, or 20% of your sum insured amount			21 days	Save 10% on your Landlord Building Insurance policy in the first year for signing up online. T&Cs apply.	Get a quote More info Compare product selectionCompare	loading
Finder Score Not scored yet Qantas Landlord Building Insurance	Finder Score Not scored yet	Optional	Up to 10% of your home sum insured	Optional	Optional	21 days	Earn up to 40,000 Qantas Points with every Qantas Landlord Insurance policy you take out by 28 January. T&Cs and exclusions apply.	Get a quote More info Compare product selectionCompare	loading
Finder Score Not scored yet Seniors Landlords Building Insurance	Finder Score Not scored yet		The lesser of: 12 months rent, or 10% of your building sum insured, or the lost rent			14 days	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 More info 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 contents 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.

Sources

Thank you for your feedback!

Written by

Gary Ross Hunter

Journalist

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 589 Finder guides across topics including:

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