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Do I need Landlord Insurance?

Landlord Insurance can offer peace of mind to investment property owners if something unexpected were to happen. Landlord Insurance provides cover for specific events such as a flood, fire, storm and theft. Also depending on your insurance policy, you can be covered for loss of rent from tenant default, accidental damage to fixtures and fittings and legal liability; or if someone injures themselves on your rental property this can also be covered. 

Some lenders will also require you to have landlord insurance as part of their loan requirements. Your policy premium is considered an investment expense, and is generally tax deductible if your property is rented or is genuinely available for rent. No taxation advice is provided by the preceding statement and you should discuss this with your tax agent or accountant. 


What does Landlord Insurance cover?

You can choose to cover your (the Landlord’s) building, contents, or combine both under one policy.

Building Insurance covers the financial cost of repairing damage to the physical structure of a property in the event of damage or theft. This includes the roof, floors and walls, as well as any fitted or permanent fixtures including any improvements or renovations.

Contents Insurance provides cover for the contents you make available to your tenants, such as: furniture, furnishings, kitchenware, manchester, appliances (including unfixed dishwashers), artwork, fixed and unfixed carpets and rugs, floating floorboards in a home which is part of a strata title plan, and internal window coverings e.g. blinds, curtains.

You should read the PDS and policy wording to understand the scope of cover, which provides for limitations and exclusions.

What is the difference between building insurance and landlord insurance for loss of rent?

The difference between building insurance and landlord insurance is the option of covering for loss of rent. Specifically, if the tenant has defaulted on paying their rent or if the property is in an unliveable condition and the tenant has left. This depends on the policy, and it’s worth checking you have selected the optional extra, if applicable, and confirm the details by reading the Product Disclosure Statement (PDS) to make sure you have the cover you are after. 

How much does it cost to rebuild my property or replace my contents?

If your investment property is a strata unit or townhouse, your building insurance may be taken care of by the strata or body corporate and you should contact your strata board for any enquiries. However, if it’s a house, think about what it would cost to rebuild it today using the same type of materials and the same style of fittings and fixtures. It is also worth knowing the cost to rebuild your property or replace my contents is called your sum insured, in insurance language. Your sum insured is the amount an insurer agrees to pay up to. It’s nominated by you and can be quite tricky to work out. As a result many insurers offer Insurance Calculators to make it easier. 

  • To help you estimate the replacement value of your investment home you can use the Building Calculator 
  • To help you estimate the replacement value of your contents, you can use the Contents Calculator

The Building and Contents calculators available through our websites are intended as a guide only. For a more accurate rebuilding cost, consider obtaining a professional valuation from a licensed builder or professional valuer.

How much should I insure my house for?

One of the biggest risks when considering home insurance is not taking out enough cover. In the event that your home and/or contents are completely destroyed, you may not have enough money to rebuild the home entirely or replace all of your possessions.

Read more

Do I really need Home Insurance?

Imagine if a flood, fire or storm wreaked havoc on your home and also caused damage to your personal property – what would you do? A home insurance policy allows you to receive compensation for a specific loss or damage in return for the payment of a premium.

Read more
 

Important information

The information contained in this article is general information only and is not specific to any product.  

It does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs to these factors before acting on it.

Terms, conditions and exclusions apply to any insurance product. Please read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding.

Cover is subject to your application for insurance being accepted.

Product Disclosure Statements (PDS)

Landlord Insurance Product Disclosure Statement and Supplementary Product Disclosure Statement (PDF 857KB) (applicable to policies issued or renewed on or after 1 July 2021)

Landlord Insurance Product Disclosure Statement (PDF 619KB) (applicable to policies issued or renewed in the period between 5 April 2021 and 30 June 2021)

Landlord Insurance Product Disclosure Statement (PDF 943KB) (applicable to policies issued or renewed in the period between 1 July 2019 and 4 April 2021)

Landlord Insurance is issued by Allianz Australia General Insurance Limited ABN 99 003 719 319, which is a corporate authorised representative of Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz Insurance). BankSA – a Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 arranges the insurance under a distribution arrangement with Allianz Insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Read the Product Disclosure Statement to see if this insurance is right for you. 

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