What does landlord insurance cover?

Landlord insurance is designed to cover your investment property if it's damaged or destroyed – including if your tenant stops paying the rent.

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What you need to know

What is building cover?

Building cover protects the physical structure of your property – as opposed to the contents inside it – if it's damaged or destroyed by an insured event such as a natural disaster or fire. Building cover generally includes the following:

Building

The building itself

plumbing systems

Pipes, cables and plumbing system

Swimming pool

Some external structures such as built-in swimming pool

If your property is unliveable, building insurance can also cover you or for the loss of rent. However, it generally doesn't cover strata title buildings. If your rental property is part of a shared block, you'll likely need strata insurance.

What is contents cover?

Contents cover encompasses all the items you keep at your rental property. For example:

Furniture

Furniture

white goods

Appliances such as white goods

Blindsl

Blinds, curtains and carpets

If an insured event occurs, landlord contents insurance can pay to repair or replace any damaged or destroyed items. In most cases, it's only worth getting contents cover if your property is furnished.

Combined cover
If you own a furnished property, most insurers allow you to combine building and contents cover.

4 main benefits of landlord insurance cover

Number 1

Tenant default

Tenant or rent default is when the tenant stops paying rent. In most cases, this happens when the tenant's income is stopped or reduced because they unexpectedly lose their job or become ill. If this happens, landlord insurance can cover you.

Number 2

Loss of rent

This covers you for loss of rental income if your property is damaged and becomes uninhabitable. For example, if the tenant can no longer stay due to a fire, flood, serious building damage or other insured events.

Number 3

Damage by tenant

This covers costs related to damage that your tenant, their guests or pets cause. It can pay out for accidental and malicious damage.

Number 4

Legal liability

This refers to legal costs if someone, generally the tenant, accuses you of negligence. For example, if you fail to meet safety requirements or building standards or you fail in your duty of care and a tenant or visitor is injured or their property is damaged.

Other common benefits with landlord insurance cover

In some cases, you get these benefits automatically included with your landlord insurance policy; others offer them as add-ons. This means you need to pay a little extra to get covered.

  • Motor burnout
  • New for old replacement
  • Accidental damage
  • Flood damage
  • Sum insured safeguard
  • Storage of undamaged contents
  • Temporary accommodation
  • Mortgage discharge costs

Ready to get landlord insurance?

1 - 6 of 9
Name Product Tenant Default and Damage Loss of Rent Accidental Damage Sum Insured Safeguard Cooling-off Period Cheapest way to pay
Budget Direct Landlord Home & Contents Insurance

Optional

10% of the sum insured amount of your property
21 days
Annually
Save 30% on your first year's premium when you buy a combined home and contents policy online. T&Cs apply.
Youi Landlord Building and Contents 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.
Qantas Landlord Home and Contents Insurance

Optional

10% of the sum insured amount of your property
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.
Seniors Landlord Home & Contents 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 in the first year. T&Cs apply.
Woolworths Landlord Building and Contents Insurance
The lesser of: 12 months rent, or 10% of your building sum insured, or the lost rent
14 days
Annually
Landlord Select Building & Contents Insurance
Landlord Select Building & Contents Insurance

Optional

Optional
21 days
Annually
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