Landlord Insurance Australia — Guide for Property Investors (2026)
If you own a rental property in Australia, standard building insurance is not enough — you need landlord insurance, which specifically covers the risks that come with having tenants. Here is what it covers, why it matters, and what property investors should look for.
What Is Landlord Insurance?
Landlord insurance is a specialised property insurance policy designed for investment properties (properties you rent out, not live in). It combines:
- Building insurance — protecting the property structure
- Landlord-specific covers — protecting against risks created by tenants
Standard home and contents insurance is designed for owner-occupied properties — it typically excludes or significantly limits cover for rental-related events.
What Landlord Insurance Covers
Coverage varies significantly between insurers — always read the Product Disclosure Statement (PDS). The following are typical inclusions:
Property (Building) Cover
- Fire, storm, hail, lightning
- Flooding (check policy)
- Malicious damage or vandalism by tenants
- Accidental damage by tenants
- Impact damage (vehicle, falling trees)
Landlord-Specific Cover
- Loss of rental income — if the property is uninhabitable due to an insured event (fire, flood, etc.)
- Tenant default — if a tenant stops paying rent (some policies; usually limited to 6–8 weeks)
- Tenant damage — damage to the property beyond normal wear and tear by tenants
- Legal liability — if a tenant or visitor is injured on the property and sues you
- Lease break costs — limited cover if a tenant leaves early
- Contents (landlord’s) — covers items you provide in the property (fixed carpets, blinds, curtains, white goods, light fittings)
What Landlord Insurance Does Not Cover
| Not covered | Notes |
|---|---|
| Tenants’ personal possessions | Tenants need their own contents insurance |
| Wear and tear | Gradual deterioration not covered by any insurer |
| Pre-existing damage | Any damage present before the policy or tenant started |
| Long-term vacancy without notification | Many policies require notification if vacant >30–60 days |
| Deliberate damage (your own acts) | Applies to the landlord, not tenants |
| Unlawful activity by tenants | Some policies exclude this; others cover |
Landlord Insurance vs Building Insurance
| Cover | Standard building insurance | Landlord insurance |
|---|---|---|
| Structure | ✅ | ✅ |
| Malicious tenant damage | ❌ or limited | ✅ |
| Tenant accidental damage | ❌ | ✅ |
| Loss of rent | ❌ | ✅ |
| Tenant default | ❌ | Some policies ✅ |
| Legal liability | ✅ | ✅ |
| Landlord’s contents | ❌ | ✅ |
For a rental property, building insurance alone is insufficient — it will not cover the most common claims landlords make (tenant damage, loss of rent).
What Does Landlord Insurance Cost?
Premiums vary significantly by:
- State and location (flood zones, crime statistics, construction type)
- Property value and rebuild cost
- Level of cover selected
- Insurer and excess chosen
As a rough guide, landlord insurance in Australia may cost $1,200–$2,500+ per year for a standard house and $600–$1,500+ per year for an apartment (strata — where building cover is via the body corporate). These are indicative ranges only — get quotes from multiple insurers.
Tax deductibility: Landlord insurance premiums are generally fully tax deductible for investment property owners as a rental property expense. Keep your annual insurance renewal certificate for tax records.
Common Claims by Australian Landlords
Based on Insurance Council of Australia data and insurer reports, the most common landlord insurance claims include:
- Storm and weather damage (hail, wind)
- Malicious damage by tenants
- Accidental tenant damage
- Loss of rent during repairs after an insured event
- Water damage (burst pipes, leaking roofs)
Do I Need Landlord Insurance for a Strata Property?
If you own an apartment or unit in a strata scheme, the owners corporation arranges building insurance for the entire complex (included in your strata levies). However, you still need landlord insurance for:
- Tenant-specific risks (damage, rent default, liability within your unit)
- Landlord’s contents within the unit (carpets, curtains, blinds, white goods)
Some strata building policies include tenant damage cover — check the strata policy before duplicating cover.
Choosing a Landlord Insurance Policy
Key factors to compare:
- Malicious tenant damage cover — what is the maximum claim limit?
- Loss of rent — maximum weeks, and is there a per-claim limit?
- Tenant default — is this included? How many weeks?
- Legal liability — minimum $10–20 million is advisable
- Sum insured — rebuild cost, not market value
- Excess — what is the standard and how does it vary by event type?
- Flood cover — essential if the property is in a flood-affected area
- Vacancy terms — how many days can the property be vacant before you must notify the insurer?
Major insurers offering landlord products in Australia include Terri Scheer, EBM RentCover, GIO, NRMA, Allianz, Suncorp, and others. Compare policies through the insurer directly or via an insurance broker.
Frequently Asked Questions
Is landlord insurance required by law?
No — it is not a legal requirement. However, some mortgage lenders may require building insurance on any property they hold security over (including investment properties). Landlord insurance is strongly advisable from a risk management perspective.
My property manager said I need it — do I?
Many property managers include a landlord insurance requirement in their management agreements. Some will not take on a property without it. Even where not required, it protects both you and them from disputes about damage.
Is landlord insurance the same as home warranty insurance?
No — home warranty insurance (also called builder’s warranty insurance) is a separate product that protects new home buyers against builder insolvency or defects. It is arranged by the builder, not the property owner.
Related Guides
- Building Insurance for Home Loans
- Negative Gearing Explained
- Investment Property Guide
- Mortgage Insurance Hub
This article provides general information about landlord insurance for Australian investment property owners. Insurance products vary significantly by insurer and policy — read the Product Disclosure Statement before purchasing. For advice tailored to your situation, speak with a licensed financial adviser or insurance broker. Find advisers through MoneySmart.