How much does landlord insurance cost?

How much does landlord insurance cost?

We've compared sample quotes from the insurers in the table below 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. Both of these policies include legal liability cover in case someone is injured in the home.

These are sample quotes for a specific house (details below); the cost will differ based on the specific aspects of your property.

Provider	Home & Contents (Combined)	Buildings Cover Only
Budget Direct	$2,148.23	$1,777.92	Get quote
Youi	$1,681.56	$1,384.96	Get quote
QBE	$2,671.01	$2,227.19	Get quote
Qantas	$2,363.04	$1,955.72	Get quote
ANZ	$1,843.97	$1,618	More info
AAMI	$1,995.12	$1,522.69	More info
Bendigo Bank	$2,756.52	$2,070.17	More info
Bupa	$3,270.60	$2,702.56	More info
CommBank	$3,102.57	$2,634.47	More info
Honey	$2,687.09	$2,276.93	More info
Landlord Select	$3,328.11	n/a	More info
Over Fifty	$2,729.39	$2,040.28	More info
St. George	$2,036.28	$1,747.16	More info
Virgin	$2,169.66	$1,795.69
Westpac	$2,036.28	$1,747.16	More info

• Learn more about our methodology

  • We obtained these landlord insurance quotes in September 2024 for the same 3-bedroom home in Concord, Sydney, NSW (2137). The 3-bedroom, 1-storey, 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 won't necessarily be the most expensive ones for your particular property. Each property is different and each insurer has a different way of calculating risk.

Finder survey: How often do people compare or switch their landlord insurance?

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.

Your choice of insurer can have a significant impact on how much you could pay. This is demonstrated by the table above, which is based on landlord home and contents (combined) cover. Finder sourced quotes for a 3-bedroom home in a metropolitan area of NSW.

Expert insight

"As part of our risk mitigation we ensure all our clients have landlord insurance. During covid all companies stopped paying rental default cover so make sure that is part of your product. Most tenants now have pets so that is a must have for cover. Be aware of the excess amounts and definitely shop around keeping in mind the cheapest policy is not always the best."

Penelope Valentine

Licensed agent, property manager and director, Property Alchemy

Landlord insurance costs as a percentage of your rental income: An example

Using the example from the table above, the cheapest combined quote was $1,681.56 a year (about $140.13 per month) with Youi. The same 3-bedroom home in Concord earns $1,000 a week in rent, which is around $4,333 per month ($1,000 × 52 ÷ 12).

So, that means you would pay about 3.23% of your gross rental income on landlord insurance:

Your job is to consider if this is a reasonable price to pay, considering how much you stand to lose if your entire property was destroyed by an insurable event and you didn't have insurance.

Frequently asked questions

• Is landlord insurance worth it?

  As a landlord, your property is exposed to all the risks of home ownership as 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 insurance does a landlord need in Australia?

  There are a few types of landlord insurance: you can get cover for loss of rental income if the property requires repair after an insurable event; cover for building insurance or damage to the property's structure; and cover for contents insurance for damage to what's inside the property, like flooring or appliances. You can choose what kind of landlord's insurance you need; it's really up to you and what level of risk you're comfortable with, although if you have a home loan, the bank will usually require you take out building insurance as a condition of the loan.

• 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 loss of rental income, or rent default; damage to your building or contents, including accidental damage and/or malicious damage; water damage following an insurable event; and cover for a tenant's death.

• 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.

• Is landlord insurance tax deductible?

  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 tax professional, such as an accountant, about your individual circumstances.

Written by

James Martin

Journalist

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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, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. 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). See full bio

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