If you already own a rental property or are considering purchasing one, landlord insurance can help protect your investment from unexpected financial setbacks. 

What does landlord insurance cover?

• Landlord insurance typically provides cover for:
• Malicious damage or theft caused by tenants or any of their guests
• Loss of cash flow if a tenant defaults on rental payments
• Legal expenses if a dispute with a tenant ends up in court
• Damage to the building or its contents, such as furniture, appliances, light fittings, or carpets, caused by fire, storms, floods, lightning, vandalism, or falling trees.

Most landlord insurance provides public liability style coverage if a tenant suffers injury, death, or property damage where the landlord is deemed at fault. Just be sure to check the fine print. 

Not everything is covered

Like most insurance products, landlord insurance isn’t one-size-fits-all. Coverage levels and exclusions vary by provider. For instance:

General wear and tear is not covered
Damage caused by the landlord to the property is excluded
Claim limits and conditions can differ between policies. 
Make sure you review the terms and conditions (Ts & Cs) carefully to understand what’s included in your specific landlord insurance policy.

Also, if you own an apartment, townhouse, or villa, some insurance costs may be shared among owners. For example, in strata-titled properties, building insurance is typically arranged by the body corporate and paid for through your regular strata levies. However, it’s essential to understand exactly what this insurance covers—and what it doesn’t. Items such as window furnishings and wall-mounted air conditioning units may not be included under strata insurance. 

Landlord insurance and tax time

As a general rule, landlord insurance premiums are tax-deductible—a timely reminder as the end of the financial year approaches. However, deductions apply only to periods when the property is genuinely available for rent.

Need help choosing a policy?

Landlord insurance is a valuable tool to reduce financial and emotional stress, especially when the unexpected happens. To explore your options and expert guidance, speak to Our Broker today about your landlord insurance needs.