Landlord insurance: the cover most people overlook
Most landlord insurance policies look the same on the surface. Similar premiums, similar brochures, similar promises. The differences only show up at the worst possible moment, which is when you need to claim. Here is where policies actually differ and what to check before you renew.
Where policies quietly differ
Three areas catch owners out again and again.
Loss of rent. If a tenant stops paying or the property becomes unliveable after an insured event, this cover keeps the income flowing. Some policies cap it at 6 weeks. The good ones cover 12 weeks or more. On a $900 a week property, that difference is worth over $5,000.
Malicious damage. Damage a tenant causes deliberately is often excluded from standard cover unless it is specifically added. Accidental damage and malicious damage are different clauses, priced differently, and plenty of owners discover they hold one but not the other.
Legal expenses. If a tenancy ends up at the Tribunal, representation and associated costs add up quickly. Not every policy includes them, and bond disputes can get complicated without that backing.
Building cover is not landlord cover
Owners of strata apartments hear that the building is insured by the owners corporation and assume they are done. The strata policy covers the building structure and common property. It does not cover your loss of rent, your fixtures and fittings inside the lot, damage caused by your tenant or your liability as an owner. A landlord policy picks up where the strata policy stops. If you own a house, you need both layers in one policy: the building itself plus the landlord-specific risks.
Not sure how this plays out for your property? A quick call gives you a straight answer.
How to read a PDS in ten minutes
Nobody reads a product disclosure statement for fun. You do not need to. Check four things and you have covered most of the risk.
First, the loss of rent cap, in weeks and in dollars. Second, whether malicious damage by tenants is included or an optional extra. Third, the excess per claim event, because a low premium with a high excess is not the bargain it looks. Fourth, the exclusions list, especially anything about periodic agreements, short stays or properties vacant beyond a set number of weeks.
The pattern we see on managed properties is simple. Owners who checked those four lines claim cleanly. Owners who bought on premium alone find the gap at claim time.
Before you renew, check
- Loss of rent: how many weeks, capped at what amount
- Malicious damage by tenants: included or optional extra
- Legal expenses and Tribunal representation: included or not
- Excess per event, not just the annual premium
- Exclusions: vacancy periods, periodic agreements, short stays
- For strata: what the owners corporation policy already covers
What we do on managed properties
Good insurance works best with good records. On the properties we manage, every routine inspection is documented in detail, condition evidence is filed from day one and rent ledgers are always current. When an owner needs to claim, the paperwork the insurer asks for already exists. We also flag claimable events early, because a claim lodged promptly with clean evidence is a claim that gets paid.
A note. This is general information, not financial advice. Policies differ and your situation is your own. Read the PDS and speak to your insurer or adviser before making decisions about cover.
Want a second opinion on your cover?
Bring your current policy to a quick call. We will tell you what we would check, what we see pay out cleanly and where the common gaps sit.