What Landlord Insurance Covers
Landlord insurance extends a standard building policy to cover risks unique to renting out a property — risks a normal home policy specifically excludes because the owner isn't living there.
- Loss of rent if a tenant defaults or the property becomes uninhabitable after an insured event
- Malicious or intentional damage caused by tenants or their guests
- Theft by tenants, which standard home policies typically exclude entirely
- Legal expenses for pursuing or defending a tenancy dispute, including eviction
- Landlord's contents — carpets, blinds, and any furniture or appliances you supply
What It Costs
According to Canstar's March 2026 data, landlord building insurance averages $2,640 a year nationally for houses (ranging from $1,998 in Tasmania to $4,482 in North Queensland), while landlord cover for units averages a much lower $432 nationally, since the strata scheme insures the building itself.
Do You Actually Need It?
Most lenders require standard building insurance on an investment property as a loan condition — but that alone won't pay out if a tenant trashes the place or stops paying rent. If you're renting the property out, landlord insurance (not a standard home policy) is the appropriate cover, and most insurers will decline a claim under a standard policy if they discover the property was tenanted.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.