Best Landlord Insurance

Owning an investment property is already an expensive venture. When things go wrong with your property or the tenants living in it, it can really throw you a financial curveball. Landlord insurance can help minimise some of the risk that comes with having an investment property. Continue Reading...

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Based on 1,746 reviews
QBE Landlord Insurance

QBE Landlord Insurance 🏆 2024

4.7  (97) Summary
Owen
OwenNSW2 posts
 
Great Online Purchase ExperienceBest priced quote and fast, easy simply payment and purchase experience online. Show details ·  1
Budget Direct Landlord Insurance

Budget Direct Landlord Insurance

4.1  (190) Summary
anuj_supop
anuj_supopACT
 
Budget Direct
Budget Direct   DM   
More
EBM RentCover Landlord Insurance

EBM RentCover Landlord Insurance

3.9  (108) Summary
Adam
AdamWarnbro28 posts
 
Excellent ServicePolicy was excellent, Customer service was friendly and efficient. Very happy with them. Show details ·  1
Kogan Landlord Insurance

Kogan Landlord Insurance

4.9  (11) Summary
Catherine S.
Catherine S.
 
Easy to establish policyEasy to apply online. Questions were clear and simple process. Show details ·  1
Allianz Landlord Insurance

Allianz Landlord Insurance

2.2  (85) Summary
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Andie M.
Andie M.QLD
 
Super Funds Awards 2022!
Super Funds Awards 2022!
Wendy Z.
Wendy Z.
Youi Landlord Insurance

Youi Landlord Insurance

2.6  (22) Summary
Bizzy-Lizzy
Bizzy-LizzyMid North Coast3 posts
 
WFI

WFI

1.9  (51) Summary
Name display
Name display
  Fair Incentive
I have three hands so I can give three thumbs down!Claims department supervisor got scared; may have lost comfort rug or dummy. Show details
Terri Scheer

Terri Scheer

1.6  (202) Summary
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Csan
CsanVIC
 
Payment but no policy or coverageI signed up for landlord insurance on Jan 15 and now it’s 13 March. I still don’t have any policy number nor insurance policy.
However they have my money. Is this a scam?
Just saw an ad for them - gosh that’s a good way for them to look like a real company. Show details
Terence K.
Terence K.NSW3 posts
 
NRMA Insurance
NRMA Insurance   DM   
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Honan Real Estate Insurance

Honan Real Estate Insurance

2.4  (9) Summary
Theresa
Theresa5 posts
 
ANZ Landlord Insurance

ANZ Landlord Insurance

1.5  (26) Summary
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Janine
JanineWA2 posts
 
AAMI Landlord Insurance

AAMI Landlord Insurance

1.3  (70) Summary
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John
JohnACT5 posts
 
Coles Landlord Insurance

Coles Landlord Insurance

1.6  (23) Summary
Mandy
MandyNSW4 posts
 
Coles Insurance
Coles Insurance   DM   
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RACV Landlord Insurance

RACV Landlord Insurance

1.5  (22) Summary
Michael Alex M.
Michael Alex M.VIC2 posts
 
RACV
RACV   DM   
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APIA Landlord Insurance

APIA Landlord Insurance

1.7  (15) Summary
Shah M.
Shah M.NSW12 posts
 
Westpac Landlord Insurance

Westpac Landlord Insurance

1.3  (30) Summary
Alan
Alan
 
Terrible serviceAbsolutely hopeless to deal with, westpac use allianz and they use Sedgwick, which just let it drag on and on (9 months) making excuses the whole time so you give up on the claim, if you ring westpac about it they couldn't care less, and tell you to ring allianz and allianz tell you to ring Sedgwick, and go round and round in circles again Show details
CGU Landlord Insurance

CGU Landlord Insurance

1.2  (34) Summary
Cold Dolla DM Monarch
Cold Dolla DM MonarchNSW3 posts
 
CGU
CGU   DM   
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P.singh
P.singhVIC6 posts
 
Everyday Landlords Insurance

Everyday Landlords Insurance

1.0  (40) Summary
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west silver s.
west silver s.
 
Landlord insuranceVery unprofessional insurance,when you claim regarding call no one answering 1 hours after they transfer to call someone else 2 hours waiting then disconnect your phone & no one call you back ,20 times doing Same things after 2 month reject tenants damage claims,be careful before get Woolworth insurance all [Content Removed]. Show details
Everyday Home and Contents Insurance
Everyday Home and Contents Insurance   DM   
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GIO Landlord Insurance

GIO Landlord Insurance

1.0  (13) Summary
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Cliff
Cliff
 
St George Underwriting Agency

St George Underwriting Agency

1.0  (2) Summary
John
JohnACT5 posts
 
Elders Landlord Insurance

Elders Landlord Insurance

1.0  (2) Summary
Wood E
Wood E4 posts
 
Wood E
Wood E  
More

Many negative comments are posted on the elders Facebook page but are mysteriously removed a day or two later. Must be a full time job making sure the negative comments are not seen by too many people

josh
joshNSW32 posts
 
New Vision Financial Services

New Vision Financial Services

5.0  (31) Summary
Ronnie
RonnieNSW
  Home Loans
Best broker everBest home loan rate and best professional service well done team Show reply
RAMS

RAMS

3.3  (521) Summary
Alvin X.
Alvin X.VIC
  Home Loans
keep away from Ramsthe construction loan team has no experience and extremely unreliable.
the progress claim process can take over one months. the Rams appointed QS team
is also shown have no experience at all. keep away from this company.
Vero Insurance

Vero Insurance

1.5  (105) Summary
Anaru N.
Anaru N.
  Secure Motor Plus Car Insurance - Third Party Property Damage, Fire & Theft

An investor symbolically protecting a toy house from damage

Is it worth getting landlord insurance?

There are plenty of risks involved with owning a property and leasing it for residential purposes. These risks can be relatively minor (like a tenant putting picture hooks in a wall) or major (like tenants maliciously damaging property or failing to pay rent). These can represent a major loss of income for a landlord, as well as an ongoing cause of stress.

While no insurance policy covers every possible outcome of foreseeable loss for a landlord, insurance can go some way in providing peace of mind that if an insurable event does occur, you are financially protected from the worst of it.

Isn’t this what a rental bond is for?

A rental bond is paid by a tenant to the landlord or property manager before they move in. It’s like a security deposit, and if a tenant breaks the terms of their tenancy agreement, a landlord can take this money from the bond. They can also withhold bond money for the reasonable cost of repair or replacement, cleaning, and rent owed, among other things.

However, a bond is typically equal to 4 weeks of tent. If there is considerable damage to the property (for example, malicious damage) or a tenant stops paying rent altogether, a bond isn’t going to adequately compensate you for these losses.

What about legal action?

If you don’t have landlord insurance, there’s always the option of taking legal action to recover losses. However, this is often a highly expensive and slow, drawn-out process. You may find yourself spending more than you actually lost in the first place - not just money, but time and energy, too.

How much does landlord’s insurance cost?

No two policies will cost the same, and the price of a premium varies based on the factors that insurers take into account when calculating the level of risk for them. These factors include:

  • Property value: A higher-priced property will result in a more expensive insurance premium.
  • The value of the contents you’re insuring.
  • The type of property you’re renting out, i.e. whether it's a house or a unit. A house is more expensive to insure, since there is a higher potential for risks.
  • Location of the property: This takes into account factors like crime statistics in the area.
  • Level of buildng security. For example, if all apartments in the building are fitted with an alarm system, it can bring down the cost of a premium.
  • How extensive your policy is. The more extras you include (e.g. tax audit cover and legal expenses) the more expensive your insurance will be.
  • Claims history: If you've made a number of claims on your landlord insurance in the past, this will increase the cost of a premium.
  • Your choice of insurer. Since all insurance companies calculate risk in different ways, the cost of premiums will be different even if you input all the same information to get a quote.

Types of Landlord Insurance

Not all of these types of insurance below will automatically be included under an insurance policy. Consider the most common eventualities that may occur for your property, and insure against loss or damage caused by these.

Ultimately, what is included in your insurance policy depends on what you as the policy holder opt for after reading the PDS.

Tenant default

If you own an investment property, the last thing you want is for your tenants to stop paying rent. It’s always a possibility, no matter how rigorous your pre-tenancy checks are. Even the best tenants may suddenly lose their job, or otherwise run into financial hardship that prevents them from being able to pay rent on time.

The majority of landlord insurance claims are for tenant default - to recoup lost rent money. Rent default insurance can help when tenants don’t pay rent when it’s due, or when tenants break their lease - for example, they move out before the lease expires and stop paying rent.

The specific conditions you’ll be able to claim for tenant default from your insurance company will be outlined in detail in the PDS, or Product Disclosure Statement. For example, the PDS may state that the insurer agrees to pay for a certain number of weeks of missed rent, or up to a certain dollar amount.

Loss of Rental Income

This type of insurance also compensates you for loss of rent, but not due to tenant default. This provides cover in the event that your building requires repairs or rebuilding, and the property is unliveable by tenants for this period of time.

Tenant damage

When a tenant damages the apartment or house they’re renting, it can be accidental, intentional or malicious. Most landlord insurance policies will cover losses caused by intentional and malicious damage, while accidental damage is usually an optional extra.

Accidental damage

Theis covers sudden and unexpected events that result in loss or damage, such as wine spilled on carpets or a wall being scraped by a couch that's being moved.

Intentional damage

This refers to wilful damage done by tenants without the landlord’s permission. DIY projects often fall within this scope, such as adding shelves to walls or repainting the walls.

Malicious damage

This is caused by acts that are motivated by malice. Examples include smashing windows, punching walls and acts of vandalism like graffitiing property.

Building cover

This is similar to home insurance, but for an investment property rather than a residential property. It protects against the building becoming damaged or destroyed. Building cover is not automatically a part of a landlord insurance policy, but you should be able to easily add it on.

Insured events

You will be covered if your building is destroyed or damaged by an ‘insured event’ listed in your policy, such as a fire, floor, earthquake, cyclone, storm, lightning or explosions.

Structural problems

This covers damage to the structure of a property, such as damage to pipes, cables, plumbing or gas systems, fittings or fixtures, blinds and awnings outside the property, and some external structures like fences.

If your investment property is part of a strata scheme, then the body corporate should have building and public liability insurance when it comes to making structural improvements to the outside of the building. However, this won’t insure against damage to the inside of the property. For example, if a water pipe bursts, then the owner’s corporation insurance should cover the cost of repairing the pipe, but not any damage to floorboards caused by the burst water pipe.

Other events that may be covered by building insurance

Water damage, theft by tenants or an external party, damage to the building resulting from theft or attempted theft, pet damage to the property, scorching of property - for example from irons or cigarettes, debris removal, demolition, and the cost of rebuilding.

Contents cover

This covers the landlord’s contents in the rental property, and possessions the landlord is legally responsible for. If items are damaged, destroyed, stolen or they stop working properly while a tenant is renting the premises, then you may be covered under insurance.

Contents can include furnishings such as carpets, curtains and blinds. If you’re renting out a furnished apartment or house, it will include beds and sofas. It can also include electrical appliances that aren’t fixtures - such as a coffee machine rather than a built-in dishwasher, which is part of the building and therefore falls under building cover.

Legal liability cover

Both landlords and property managers have a duty of care to provide a safe and habitable property to tenants. If a tenant or their guest is injured while on a property that is dangerous or in a state of disrepair, they can make a legal liability claim against a landlord or agent.

Legal expenses cover

This covers the costs of taking legal action against a tenant, such as getting a tenant evicted by court order.

Common exclusions from landlord insurance policies

  • Everyday expenses associated with owning an investment property
  • General wear and tear
  • Mould, mildew or rust
  • Building defects
  • Damage caused by insects or vermin
  • Falling trees
  • Tidal movements
  • DIY projects carried out by a tenant without landlord consent
  • Tenant contents, which are the tenant's responsibility
  • Market conditions that may push down the price of rent in order for a property to remain competitive to renters
  • Loss of rental income when a vacant property is not being advertised to be sold or occupied by a new tenant.

Tips for landlords

Buy landlord insurance as soon as possible.

There’s no point buying landlord insurance after a problem has arisen. If your tenant defaults on their rent and you purchase an insurance policy after they do this, you’re not going to be compensated by the insurance company.

Carefully read the Product Disclosure Statement.

It’s important to carefully read the PDS to be well-informed about which events or circumstances you are - and aren’t - covered for. Reading the fine print is essential to avoid a shock later down the line when your insurer doesn’t pay for damage you weren’t covered for in the first place.

If your insurer rejects your claim when you are in fact covered under a policy according to the PDS, you can use this knowledge to your benefit if you're contesting the claim rejection.

Regularly document the condition of the property

To avoid any unpleasant surprises, it’s good practice to conduct regular property inspections to ensure tenants are keeping the house or apartment in good condition.

Keeping detailed written reports, as well as photos, documenting the state of the property before and after the tenancy also helps your case to prove loss or damage to an insurance company in the event you need to make a claim.

Thoroughly compare your options

Insurance markets are competitive, and you should take advantage of this by shopping around to find the best policy for your property.

Make sure that before buying landlord insurance, you compare the following:

  • Value for money: This includes the cost of premiums (provided in a landlord insurance quote), as well as any excess you’ll be required to pay. Also consider the weekly rent limit an insurer will pay you for loss of rental income.
  • Transparency: Some insurers are more open and honest than others about their business practices.
  • Customer service: With income at stake, you want to rest assured that customer service is prompt, efficient, reliable as well as friendly.
  • Claim Resolution time: Ideally, this will be as short as possible, taking around 2-4 weeks rather than several months.
  • Claim Approval rate: This is really important, as there’s no point shelling out on insurance premiums if the company you’ve chosen has a notoriously low claim approval rate. If you’re opting for cheap landlord insurance, it could be too good to be true - checking the claim approval rate first may show you the catch.

While comparing value for money may be easy enough to do on insurance companies websites, reading reviews can really help you learn more about an insurance company’s transparency, customer service, claim approval rate and claim resolution time. Simply scroll up to read real-to-life feedback from our trusted reviewers today.

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