Landlord insurance
Cover designed for rental properties, protecting against tenant-related losses that home insurance excludes.
Standard home and contents insurance does not contemplate tenants. Landlord insurance adds cover for loss of rent, malicious damage by tenants, and legal expenses in pursuing a tenancy dispute.
Rent default cover is the component most investors value. If a tenant stops paying and takes months to evict, the policy can replace lost rent that would otherwise have to be funded from your own pocket while the mortgage continues.
For a strata property, the building itself is insured by the owners corporation, so you generally only need contents and landlord-specific cover. For a house you need building cover as well.
What one bad tenancy costs
A tenant stops paying and takes four months to remove, leaving $3,000 of damage. At $600 a week that is roughly $10,400 of lost rent plus repairs — far more than years of premiums.
The bit people get wrong
Cover is usually conditional on having a written lease, a proper bond, and documented routine inspections. Informal arrangements with friends or family are frequently excluded when a claim is made.
Common questions
Is landlord insurance tax deductible?
Yes. Premiums on an income-producing property are fully deductible against rental income in the year paid.
Do I need it if I use a property manager?
Yes. A manager reduces the risk of a bad tenancy but cannot eliminate it, and most policies actually require professional management or documented processes.
Does it cover normal wear and tear?
No. Insurance covers sudden and accidental damage or deliberate acts, not gradual deterioration. Wear and tear is a maintenance cost, deductible as repairs.