Landlord Insurance,
Single Dwellings.

Landlord insurance for a single dwelling is designed to cover residential investment property owners who rent out a house, townhouse or unit. It typically combines building cover, landlord contents cover and a range of covers specific to the landlord-tenant relationship including loss of rent, rent default and tenant damage. It is different from standard home and contents insurance, which is designed for owner-occupiers and generally does not cover the risks associated with tenanting a property.

Landlord insurance does not typically cover the tenant's own personal contents. Normal wear and tear resulting from tenancy is generally excluded. Intentional damage caused by the landlord and damage to items the landlord is legally required to maintain are also generally excluded. Rent default claims commonly require the tenancy to have been properly documented and the default to be a genuine payment failure rather than a dispute. Conditions and exclusions vary significantly by policy.

There is no general law requiring residential landlords to hold landlord insurance in Australia. Some lenders may require evidence of building insurance as a condition of the mortgage. In some states, residential tenancy legislation may have requirements relevant to certain types of rental arrangements. Requirements vary by state and individual arrangement.

Home and contents insurance is designed for owner-occupiers. It generally does not cover tenant damage, rent default, loss of rent or the specific liability risks that arise from renting a property to tenants. Landlord insurance is specifically designed for investment property owners and includes cover for those scenarios. If you rent out your property, a standard home and contents policy is unlikely to provide adequate protection.

Many landlord insurance policies include cover for damage caused by tenants, including both accidental and malicious damage. The scope of this cover varies significantly by policy. Some policies cover a broader range of tenant damage scenarios; others apply specific conditions around the tenancy agreement, bond and claims notification requirements. Check the policy wording carefully and get in touch if you have questions about what specific conditions apply.

Some landlord insurance policies include a rent default extension that can respond when a tenant stops paying rent and vacates or abandons the property. Rent default cover generally requires a formal tenancy agreement to be in place and the default to meet specific conditions defined in the policy. There is typically a waiting period and a limit on the amount payable. The scope and conditions vary by policy. Get in touch and we can walk you through what is covered and what conditions apply.

Loss of rent cover is designed to respond when a rental property becomes uninhabitable as a result of a covered event such as fire, storm or flood, and the landlord loses rental income during the repair period. It is distinct from rent default cover, which responds to a tenant's failure to pay. Loss of rent cover is generally limited to an indemnity period and subject to a weekly or monthly cap. Conditions and limits vary by policy.

Landlord insurance premiums vary depending on the property type, location, sum insured and the scope of cover including whether rent default and loss of rent are included. A standard suburban residential property can generally attract premiums from around $800 to $2,200 per year. Properties in cyclone or flood-prone regions may attract higher premiums. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific property and circumstances.

Landlord insurance claims vary widely. A straightforward tenant damage claim may involve a few thousand dollars. A serious fire or storm event resulting in significant structural damage and a period of untenanted repairs can produce claims of hundreds of thousands of dollars in building repair costs and loss of rent combined. Without insurance, these costs fall directly to the landlord.

The building sum insured for a rental property should reflect the estimated cost of fully rebuilding the structure from the ground up, not the property's current market value. Rebuild cost and market value can differ significantly depending on location and property type. Underinsurance is a common issue in the Australian residential property market. A professional valuation or quantity surveyor assessment can help establish an appropriate rebuild cost. Get in touch and we can help work this out as part of arranging your cover.

Landlord insurance for a single dwelling is typically arranged by the individual property owner to cover the building and landlord-specific risks. Strata insurance covers the common property and building structure of a strata-titled development and is typically arranged by the owners corporation or body corporate. If you own a strata-titled investment property such as an apartment or townhouse in a strata scheme, the strata insurance covers the building itself, and you may need a separate landlord policy to cover the landlord contents and rental-specific risks inside your lot.

Insurers typically ask for the property address, type and year of construction, the estimated rebuild cost, whether the property is currently tenanted, the type of tenancy arrangement, the annual rental income, whether loss of rent and rent default cover are required, any recent claims or loss history and any lender requirements. When you get in touch, we will guide you through what we need and present your risk to our insurer panel.

Notify us as soon as possible after an incident. For tenant damage, document the damage thoroughly with photographs and retain all relevant tenancy documents including the condition report, tenancy agreement and bond lodgement details. For rent default, ensure you have followed the relevant state tenancy authority process before lodging a claim, as most policies require formal steps to have been taken. We will be actively involved throughout the claims process.

A decline from a standard insurer does not mean cover is unavailable. We have access to a wider range of insurers beyond the standard market, including options for unusual property types, higher-risk profiles and prior claims histories. Get in touch and we can identify what options are available for your situation.