Landlord insurance: what it covers and who arranges it

What landlord insurance is and who needs it

Landlord insurance is home insurance written for a property that is rented out. It combines cover for the building or the landlord's contents with cover for risks that come with tenants, such as unpaid rent and deliberate damage.

It is generally a choice and not a legal requirement. The Queensland Government, for example, describes insurance as something a landlord is entitled to take out. A lender will usually expect the building to be insured as a condition of the loan.

What you need depends on the property:

  • Freestanding house: the owner insures the building.
  • Strata unit: the owners corporation or body corporate normally insures the building. The investor still needs cover for items they own inside the lot, lost rent and their own liability.

Tenants are responsible for insuring their own belongings.

What is usually covered, and common exclusions

Policies differ, but landlord cover can include:

  • damage to the building from listed events such as fire, storm and theft
  • landlord's contents, such as carpets, curtains and appliances
  • loss of rent while the home cannot be lived in after an insured event
  • rent default, and the cost of legal action to recover possession
  • malicious or deliberate damage and theft by tenants or their guests
  • legal liability if a tenant or visitor is injured.

Common exclusions and limits:

  • wear and tear, gradual deterioration and poor maintenance
  • rent default where there is no written lease, or where the bond has not been applied first
  • periods when the property is vacant beyond a set number of days
  • short-stay or holiday letting, unless the insurer has agreed to it
  • damage by pets, which is often optional
  • flood, where it has been removed or was never offered.

Read the product disclosure statement to see what is excluded. Insurers must also provide a Key Fact Sheet for home building and contents policies.

How landlord insurance is sold

Landlord cover is sold in three main ways:

  • Direct: most large home insurers sell it online or by phone.
  • Through a property manager: some agencies refer landlords to a specialist underwriting agency and may receive a commission.
  • Through a broker: a broker can approach insurers and underwriting agencies, including some that do not deal with the public.

Most single rental homes are insured directly. A broker is the more usual route for a portfolio of several properties, a property with a commercial tenancy attached, a boarding or rooming house, short-stay letting, or a property that other insurers have declined. Check that a broker holds an Australian financial services licence, or is an authorised representative, on the ASIC professional registers.

What makes landlord cover hard or expensive to get

  • The property is in a flood, cyclone or bushfire area. The cyclone reinsurance pool covers landlord policies as well as owner-occupied homes.
  • The property is let by the room or has a high turnover of tenants.
  • It will sit empty for long periods.
  • There is no managing agent and no written lease.
  • The building is in poor repair.
  • There have been earlier tenant-related claims.

A landlord policy bought by an individual is normally a consumer insurance contract. You must take reasonable care not to make a misrepresentation when you answer the insurer's questions, including questions about how the property is used.

Questions to ask before buying

  • Is rent default included, and for how many weeks?
  • Is the bond deducted from a rent or damage claim?
  • How does the policy define malicious damage, deliberate damage and accidental damage?
  • What happens to cover if the property is vacant between tenants?
  • Does the policy require a written lease or regular inspections?
  • Is flood covered?
  • If the property is strata, what does the body corporate policy already cover?
  • Is any commission paid to the property manager or broker?

Where to complain

Complain to the insurer first, in writing, and ask for its internal dispute resolution process. Insurers generally have 30 calendar days to respond. If the problem is with a broker's service, complain to the broker.

If you are not satisfied with the answer, or there is no answer in time, take the complaint to the Australian Financial Complaints Authority (AFCA). It is free. Call 1800 931 678.

Find a licensed broker

Browse businesses licensed to arrange general insurance in your city, or search every state.

Sources

Last checked: 2026-10-06

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