Landlord insurance explained
By Carolyn Parrella | Published 22 November 2024 | Last Updated 19 October 2026
Owning a rental property can come with unexpected risks. Many landlords use insurance to help with the potential costs these risks have on their property and rental income. But it can also help them feel more confident knowing they’re covered for what might happen next.
At the same time, insurance can be tricky to understand. Building, strata and landlord insurance may sound similar, but they can cover different things. Understanding the differences can help you consider the types of cover and factors that may be relevant to rental properties.
It is also important to know what your policy includes, and what it doesn’t. Reading the Product Disclosure Statement (PDS) can help with this.
What are the benefits of having specialised landlord insurance?
If you rent out your property, the risks can be different from living in the property yourself. Standard home and contents insurance is usually designed for owner‑occupied homes. It may not include cover for tenant related risks.
For example, a tenant may damage the property, stop paying rent or leave without notice. In some situations, you could also be responsible if someone is injured at your property.
Types of insurance for rental properties
Landlord insurance
Landlord insurance is generally designed for rental properties, but cover, eligibility and suitability depend on the policy and the insurer’s policy documents. Depending on the policy, it may include cover for tenant damage, theft, loss of rent and legal liability, subject to limits, conditions and exclusions.
Building insurance
Building insurance generally focuses on the bricks and mortar of a property. Depending on the policy, it may cover damage caused by insured events such as fire, storm and flood. It differs from landlord insurance and may not include cover for tenant-related risks.
Holiday rental insurance
Holiday rental insurance is generally intended for some owners of short-stay rental properties. Depending on the policy, it may include cover for risks associated with paying guests, such as tenant damage, theft and loss of booking income, subject to limits, conditions and exclusions.
Standard building and contents insurance
This type of insurance is generally designed for people living in their own home.
While it may cover some damage to the building or belongings, it may not cover tenant related events such as unpaid rent or tenant damage.
Strata insurance
If your property is part of a strata scheme, the body corporate usually arranges strata insurance. This often covers the building’s structure and shared areas, but not the items inside the unit or upgrades you make. This may need separate cover.
What landlord insurance typically covers
Landlord insurance differs from strata insurance and standard home insurance. Depending on the policy, it may include cover for rental-property risks such as:
- Tenant related damage – loss or damage caused by tenants, their family or invited guests may be included, depending on the policy.
- Theft and property damage – this may include damage or theft of contents, or damage caused by events like break ins or vandalism.
- Legal liability – some policies include cover if you’re legally responsible for injury to someone or damage to their property at your rental.
- Loss of rent – cover may apply if rent is lost due to events such as tenant default, vacancy after certain tenant events, or if the property becomes untenantable due to insured damage. Limits and conditions apply.
Factors to consider when reviewing landlord insurance options
The information below is general only and does not take into account your objectives, financial situation or needs. Before acting on it, consider whether the information is appropriate for you and read the relevant PDS and Target Market Determination.
When comparing policies, it helps to focus on the details. Start by reading the policy wording carefully. This will explain what is covered, and the conditions you need to meet.
Cover can differ between insurers, so look at how each policy defines things like tenant damage, contents, and loss of rent.
You should also check how loss of rent is calculated and what limits apply. The PDS explains how claims are assessed and paid.
What to look for in a landlord insurance policy
Scope of cover
Does the policy include contents, building, tenant damage, loss of rent and liability? Review what is included, along with any limits, exclusions, excesses and conditions, so you can understand how the cover works.
Exclusions and conditions
What is not covered? Are there conditions you need to meet for a claim? The best way to answer these questions is by reviewing the policy’s PDS. While not the most riveting read, it’s an important legal document and one you should read before purchasing insurance.
Types of insured events
Does the policy include insured events that may be relevant to the property and tenancy? Check the PDS to understand what is and is not covered, including any cover for damage caused by tenants, guests or insured events.
Policy limits and definitions
Check the limits, excesses and key definitions, as these can affect what you can claim and how much may be payable if an insured event occurs.