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 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.