Landlord insurance from several insurers, in one form

A landlord policy covers the building (and the contents you provide, such as carpets, blinds and appliances) against events like fire, storm and burst pipes, plus your legal liability as the owner. Landlord cover adds rent a tenant fails to pay, rent lost while the home can’t be lived in after an insured event, and theft or damage by tenants. Limits, waiting periods and exclusions differ between insurers and are set out in each PDS.

A home and contents policy is written for a home you live in. Most limit or exclude cover once a property is rented out, and none include rent default or tenant damage. A rented home is usually insured on a policy written for landlords; check your current PDS if your circumstances have changed.

In a strata or community title scheme, the owners corporation insures the building. A unit owner who rents it out commonly insures what the strata policy leaves to them (carpets, blinds, appliances, fixtures they own) and the rent and tenant cover. Ask us how that applies to a unit you rent out.

It depends on the building, its sum insured, the rent, the cover you add and the insurer. For a Victorian house insured for about $1 million with landlord cover, our panel’s prices ran from $4,151 to $5,999 a year. For a unit, the owners corporation insures the building, so the landlord’s own policy is priced on much smaller sums.

Insurance for a rental property is generally a deductible expense against the rental income. How it applies to you is a question for your accountant; this is general information, not tax advice.

Everything here is general information only. It doesn’t consider your objectives, financial situation or needs. We explain how landlord insurance works and show the prices insurers return; read the PDS and decide what fits.