Landlord insurance vs home insurance

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

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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. If you're a landlord, it's a no-brainer.

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

Landlord

Landlord insurance

Landlord insurance is a specialist form of home insurance that covers everything normal home insurance does – plus a range of extra protections for problems unique to landlords. This can include theft and intentional damage by the tenant, loss of rent when your place is damaged or if the tenant can't pay and legal expenses and replacement locks if you have to evict a tenant.

House

Home insurance

Home insurance covers you if a storm, fire, theft or other insured event damages or destroys your home or its contents. You can typically choose two forms of protection: protection for your home (building insurance) and protection for your belongings (contents insurance). It's a step down from landlord insurance because that also protects your business; specifically, any issues your tenants may cause.

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

Renting out a property? Get covered with landlord insurance

Name Product Tenant Default and Damage Loss of Rent Accidental Damage Sum Insured Safeguard Cooling-off Period Cheapest way to pay
Budget Direct Landlord Insurance

Optional

10% of the sum insured amount of your property
Optional
Optional
21 days
Annually
Save 15% on your first year's premium when you purchase cover online. T&Cs apply.
ANZ Landlord Insurance

Optional

Up to $52,000
Optional
21 days
Monthly or Annually
Save up to 10% with two eligible insurance policies and 12.5% for three eligible insurance policies. T&Cs apply.
St. George Landlord Insurance
The lesser of: Up to 10% of your sum insured amount, or the amount of lost rent
21 days
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER
Westpac Landlord Insurance
The lesser of: Up to 10% of your sum insured amount, or the amount of lost rent
21 days
Monthly or Annually
Get up to 25% off for your first year. Promo code: COVER
Virgin Landlord Insurance

Optional

10% of the sum insured amount of your property
Optional
Optional
21 days
Annually
Purchase a new eligible Virgin Home and Contents Insurance policy online and you'll also save 15% on your first year’s premium. T&C’s Apply.
Domain Landlord Insurance

Optional

Optional - Up to 12 months of your weekly rental amount
30 days
Annually
Domain Insure uses property data to help build your quote faster.
Qantas Landlord Insurance
10% of the sum insured amount of your property
Optional
Optional
21 days
Annually
Earn up to 20,000 Qantas Points when you apply. Points awarded will be based on your premium. T&Cs & exclusions apply.
QBE Landlord Insurance
The lesser of: Up to 24 months of lost rent, or 20% of your buildings sum insured amount
21 days
Annually
Save 10% on your first years’ premium with QBE Landlord Insurance.
Seniors Landlords  Insurance
The lesser of: 12 months rent, or 10% of your building sum insured, or the lost rent
14 days
Annually
Buy online and save up to 15% on landlord building and contents policies. T&Cs apply.
Youi Landlord Insurance

Optional

The reasonable rental amount for up to 12 months
20 days
Annually
Cover for investment property from fire, theft and numerous weather events.
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Compare up to 4 providers

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. 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 landlord 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 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 its entire value, otherwise you would only get a partial payout if it's 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 often 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 like this.

FAQs about landlord insurance vs home insurance

Brands still offering landlord insurance

As of 15 October 2021, 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
  • Yes
Get quote
Qantas home insurance
  • Yes
  • No
Get quote
Coles landlord insurance
  • Yes
  • Yes
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
  • Yes
  • Yes
Get quote
Apia landlord insurance
  • Yes
  • Yes
More info
CHU landlord insurance
  • Yes
  • Yes
More info
Picture not described
  • Yes
  • No
More info
NRMA landlord insurance
  • Yes
  • Yes
More info
RACV landlord insurance
  • Yes
  • Yes
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
More info

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Picture: Unsplash

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6 Responses

    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

    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

    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 a 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 holiday home insurance page. 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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