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Landlord insurance vs home insurance

Normal home insurance can’t protect you from a problem tenant or loss of rent. Landlord insurance can.

Updated

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Home and contents insurance protects your home against damage or accidents. Landlord insurance covers you for the same things, but also covers you for loss of rent and malicious damage by your tentants. It's a no-brainer if you're a landlord.
warningSome landlord insurance policies have temporarily removed benefits such as rent default and a few others because of the pandemic. Make sure to check this with the insurer before deciding on a policy.

Renting out a property? Get covered with landlord insurance

Name Product Fire, storm, & theft damage Tenant Default and Damage Loss of Rent Accidental Damage to Home or Belongings Flood
Budget Direct Landlord Insurance
Optional
Optional
Save 15% on your first year's premium when you purchase cover online. T&Cs apply.
Youi Landlord Insurance
Optional
Cover for investment property from fire, theft and numerous weather events.
Virgin Home and Landlord Insurance
Optional
Optional
Grab a $100 e-Gift card when you purchase a new eligible Virgin Home or Contents Insurance policy by 30 November 2020. Purchase online and you'll also save 15% on your first year's premium when you purchase online. T&Cs Apply.
Woolworths Landlord Insurance
Save up to 15% on combined building & contents online
Westpac Landlord Insurance
15% off for your first year. Promo code: COVER
St George Landlord Insurance
save up to 25% when you purchase cover online.
Domain Landlords Insurance
Optional
Get 12% off your first year's premium when you purchase a new Landlord Insurance policy online. T&Cs apply.
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What’s the difference between landlord insurance and home insurance?

Landlord insurance is simply a form of home insurance that covers everything normal home insurance does plus a range of extra protection for problems unique to landlords. With normal home insurance, you can typically choose two forms of protection: protection for your home (building insurance) and protection for your belongings (contents insurance).

Landlord insurance refers to a group of insurance products that covers three areas: the building, the contents, and the “business” (tenants insurance). Your business in this case involves your tenants, so tenants insurance (or tenants protection) is one of three subsets of landlord insurance that protects you against any issues your tenants may cause.

It is tenants protection that sets landlord insurance apart from residential home insurance, so it’s tempting to refer to this subset alone as “landlord insurance”. However, you must remember that insuring the building and the contents is just as important.

What will landlord insurance protect you for that home insurance won’t?

The tenant protection part of landlord insurance gives you additional protection against the following:

  • Theft and intentional damage by the tenant
  • Loss of rent when your place is damaged
  • Loss of rent if the tenant can’t pay
  • Your legal expenses if you have to evict a tenant
  • Replacement locks if you have to evict a tenant

Features included in landlord insurance vs home insurance

Here’s a more detailed breakdown of the similarities and differences between landlord insurance and home insurance.

Type of damage or lossLandlord insuranceHome insurance
Fire
Storm
Flood
Water
Impact
Legal liability
Loss of rental income
Legal expenses to evict a tenant
Replacement locks after evicting a tenant
Malicious damage by tenant

How to choose the right landlord insurance

As a landlord, there are three areas you need to protect: your building, the belongings that you keep in the building and your rental income from that investment. Here’s how to make sure you have the right amount of cover:

  • Decide what needs to be protected. If you don’t keep much inside the property or if losing the contents won’t break the bank, you may be able to get away without contents insurance. If you are renting to a family member and trust them not to burn the place down, you may also be able to do without landlord insurance. Similarly, if you’re living in an apartment, you might not need building insurance as strata has your back. But for the most part, it would be shortsighted to go without either building insurance or landlord protection because these can literally save your entire investment.
  • Decide how much to insure the building for. When you’re insuring the building, it makes sense to insure it for it’s entire value, otherwise you would only get a partial payout if it is destroyed. This could end up costing you hundreds of thousands of dollars. You can also add additional cover that would enable you to rebuild your property to the same specs as the old one, even if the cost of building materials has risen causing the costs to blow out.
  • Read and re-read the exclusions in your policy documents. These are the situations where you won’t be covered. For example, you won’t be covered for floods unless you buy additional flood protection. If you’re not familiar with your policy’s exclusions, it can be easy to overlook a key piece of information such as this.

Do you need home insurance if you already have landlord insurance?

You will not need an additional home insurance policy if you’ve already taken out building and contents insurance as part of your landlord insurance. However, if you’ve only taken out tenant protection, that won’t cover you if the building is damaged, or if the items inside are damaged or stolen. In that case, you would need to add either building insurance or contents insurance depending on your needs.

Do you need landlord and home insurance if you live in the same building?

If you live in the same building where your rental properties are located, you’ll need to make sure your personal home is insured in addition to your rental properties. A situation such as this is a little more complex, but If you ring the insurer you are considering, they can usually set you up with a custom policy to suit a variety of living situations

What is the difference between landlord insurance and tenants insurance?

Landlord insurance refers to a group of products that covers three areas: the building, the contents, and any issues caused by the tenants. The insurance for the latter is known as tenants insurance or tenants protection, and is simply one of these three subsets.

Brands still offering landlord insurance

As of 23 October 2020, the following brands are still offering new landlord insurance policies. All existing policies should be respected, but it's best to check directly with your insurer.

ProviderAre they still offering landlord insurance?Are they offering tenant default options?Apply
Youi landlord insurance
  • Yes
  • No
Get quote
Coles landlord insurance
  • Yes
  • No
More info
Westpac landlord insurance
  • Yes
  • No
Get quote
Picture not described
  • Yes
  • No
Get quote
Picture not described
  • Yes
  • Yes
More info
Allianz landlord insurance
  • Yes
  • No
More info
Picture not described
  • No
  • No
More info
Apia landlord insurance
  • Yes
  • Yes
More info
CHU landlord insurance
  • Yes
  • No
More info
Picture not described
  • Yes
  • No
More info
NRMA landlord insurance
  • Yes
  • No
More info
RACV landlord insurance
  • Yes
  • No
More info
real insurance
  • Yes
  • No
More info
SGUA landlord insurance
  • Yes
  • No
More info
Suncorp landlord insurance
  • Yes
  • Yes
More info
Picture not described
  • Yes
  • In some cases
More info
Picture not described
  • Yes
  • No
Get quote

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6 Responses

  1. Default Gravatar
    MelJune 23, 2020

    Hi
    We originally took out landlords insurance but now have family members living in the home and not paying rent. Are we still covered by our current Landlord Insurance?

    • Avatarfinder Customer Care
      AlexandraJune 23, 2020Staff

      Hi Mel,

      If the members aren’t paying rent then you might not be covered for the landlord insurance part of your policy. If you decide that you no longer need the additional extras under landlord insurance like cover for loss of rent or damage made by the tenants, then you may be able to simply change over to a building insurance policy and list it under ‘Owner occupied’ as you have family members living there. This might be slightly cheaper than your current landlord insurance policy.

      Hope this helps!

      Best,
      Alexandra

  2. Default Gravatar
    VivJune 14, 2020

    Can a building owner pass on a share of the building insurance cost to the tenant or lessee?

    • Avatarfinder Customer Care
      AlexandraJune 15, 2020Staff

      Hi Viv,

      It’s generally the landlord’s responsibility to take out building insurance and if the tenant would like cover for their own things, they can take out a renters insurance policy that will cover their contents and personal possessions.

      If you’re having difficulty with a dispute, I’d suggest getting in touch with the Australian Financial Complaints Authority (AFCA) that can help you reach a resolution with the other party.

      Hope this helps!

      Best,
      Alexandra

  3. Default Gravatar
    GailApril 21, 2019

    Please advise which companies can offer house and contents insurance for airBnB properties. I keep getting directed to various insurers but but as I finish each quote submission I am advised that they do not cover for such. This is becoming very frustrating and time consuming.

    • Avatarfinder Customer Care
      MaiApril 22, 2019Staff

      Hi Gail,

      Thank you for reaching out to Finder.

      For Airbnb properties, you’ll need to look for a policy like landlord insurance. They will cover you for things like tenants damaging your property, as well as your home itself.

      You can try landlord insurance from BudgetDirect, Youi and Virgin Money. You can request quotes from our article on Holiday home insurance. The page also discusses Airbnb Host Guarantee which you may need to check when comparing your options.

      Hope this helps! 😊

      Kind Regards,
      Mai

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