Compare landlord insurance from 10+ Australian providers side by side. Cover for tenant damage, loss of rent, legal liability and more. Protect your rental investment. 100% free.
Terri Scheer is Australia's number one specialist landlord insurer with over 25 years protecting rental properties nationwide. Underwritten by AAI Limited (part of Suncorp Group), they offer dedicated landlord cover that mainstream insurers often cannot match.
A guide to how landlord insurance works in Australia and why it is considered essential for rental property owners.
Landlord insurance is a specialised property insurance product built specifically for investment properties that are rented out. It bundles standard building cover with protections tailored to the risks landlords face - risks that a typical home insurance policy does not address.
The central difference between landlord insurance and standard home insurance is tenant-specific cover. Renting out a property introduces risks that owner-occupiers rarely encounter. Tenants may cause malicious or accidental damage, fall behind on rent payments, abandon the property, or leave it in a condition requiring significant repair. Standard home insurance policies generally exclude these scenarios because they assume the policyholder occupies the dwelling.
In Australia, landlord insurance is not legally mandatory. That said, most lenders require at least building insurance when a mortgage is involved, and the tenant-specific extras - such as loss of rent, tenant damage and legal liability - are widely held by property investors. According to Terri Scheer claims data, roughly 17% of landlord claims involve tenant damage, underscoring the value of this cover.
Each state and territory has its own residential tenancy legislation governing landlord and tenant obligations. For instance, in NSW the NSW Civil and Administrative Tribunal (NCAT) handles tenancy disputes, while in Victoria the Victorian Civil and Administrative Tribunal (VCAT) performs a similar role. Queensland landlords can escalate disputes through the Queensland Civil and Administrative Tribunal (QCAT).
For a broad overview of insurance principles, the Australian Government's MoneySmart home insurance guide is a useful starting point. The Australian Financial Complaints Authority (AFCA) provides free dispute resolution for insurance complaints.
Key point: EBM RentCover data shows that loss of rent is involved in more than 50% of landlord insurance claims. Tenant damage can reach tens of thousands of dollars - Terri Scheer offers a combined $70,000 limit for building and contents damage by tenants. Even a few weeks of lost rent during a vacancy or repair period can cost landlords thousands, making specialist landlord cover a cost-effective safeguard.
Landlord insurance is typically structured in layers. Here are the three main approaches available.
Added to an existing home insurance policy. Provides tenant-specific cover like loss of rent and malicious damage on top of your standard building insurance.
Complete protection in a single policy. Includes building cover, landlord contents, tenant damage, loss of rent, legal liability and optional extras.
Offered by specialist landlord insurers like Terri Scheer and EBM RentCover. Tailored specifically for property investors with features mainstream insurers often lack.
An in-depth look at Australia's leading landlord insurance providers, based on publicly available policy documents and features.
Terri Scheer has been Australia's leading specialist landlord insurer for over 25 years. Underwritten by AAI Limited (part of the Suncorp Group), they focus exclusively on protecting rental property owners. Their combined building and contents tenant damage limit of $70,000 is among the highest in the market.
EBM RentCover is another specialist landlord insurer popular among property managers across Australia. Their data indicates that loss of rent accounts for over 50% of claims, and their policies are built to address that risk with generous rent cover periods.
AAMI is one of Australia's most recognised insurance brands and offers a dedicated landlord insurance product. Part of the Suncorp Group, AAMI provides straightforward cover with competitive pricing and broad availability across all states.
Allianz is a global insurer with a strong Australian presence. Their landlord insurance product provides building and contents cover alongside tenant-specific protections. Allianz is known for flexible policy options and a well-established claims process.
CGU (part of Insurance Australia Group) offers landlord insurance through its broker network and directly. Their product covers standard building risks plus tenant-specific scenarios including loss of rent and legal liability.
Suncorp provides landlord insurance with building, contents and liability cover tailored for rental properties. As one of Australia's largest general insurers, Suncorp has a strong claims network and broad availability. Multi-policy bundling may be available.
The right policy depends on your property type, tenancy situation, and the number of rental properties you own.
Major Australian insurers offering dedicated landlord insurance. Compare cover, limits, and key features.
| Provider | Product Type | Tenant Damage | Loss of Rent | Liability | Best For |
|---|---|---|---|---|---|
| Terri Scheer | Specialist | Up to $70,000 combined | Up to 52 weeks | Up to $20 million | Specialist landlord focus |
| EBM RentCover | Specialist | Included | Included | Included | Property managers, multi-property |
| AAMI | Dedicated | Included | Included | Up to $20 million | Mainstream, competitive pricing |
| Allianz | Dedicated | Included | Included | Included | Flexible policy options |
| CGU | Dedicated | Included | Included | Included | Broker network, IAG-backed |
| Suncorp | Dedicated | Included | Included | Included | Major insurer, bundling options |
A breakdown of what is typically included in a landlord insurance policy versus standard home insurance.
| Coverage | Standard Home Insurance | Landlord Insurance | Notes |
|---|---|---|---|
| Building damage (fire, storm, flood) | ✓ Included | ✓ Included | Core cover in both policy types |
| Legal liability | ✓ Included | ✓ $10M-$20M | May be higher on landlord policies due to tenant risk |
| Malicious tenant damage | ✗ Not covered | ✓ Up to $70K | Key landlord-specific feature |
| Accidental tenant damage | ✗ Not covered | ✓ Included | Varies by provider and policy level |
| Theft by tenant | ✗ Not covered | ✓ Included | Theft of fixtures and fittings by tenants |
| Loss of rental income | ✗ Not covered | ✓ Up to 52 weeks | If property is uninhabitable from insured event |
| Rent default / abandonment | ✗ Not covered | Optional | Tenant leaves without paying or abandons property |
| Landlord contents / appliances | ✗ Not covered | ✓ Varies | White goods, curtains, carpets supplied by landlord |
| Loss of bond | ✗ Not covered | Some policies | When bond does not cover damage costs |
| Emergency repairs | Varies | ✓ Included | Urgent repairs to prevent further damage |
| Hidden gradual damage | Varies | Varies | Slow leaks and hidden pipe damage |
Understanding what is not covered is just as important as knowing what is. These are the most common exclusions across Australian landlord policies.
Normal ageing of the property, gradual deterioration, rust, rot, mould (unless resulting from an insured event), and general maintenance issues. Landlords are expected to keep the property in a reasonable state of repair under state tenancy laws.
Any damage or defects that existed before the policy began, or that you were aware of when taking out the policy. This includes known structural issues, pre-existing pest infestations, or prior water damage.
Most landlord policies require the property to be tenanted or actively advertised for rent. Extended vacancy (typically 60+ days without a tenant or active listing) may void certain cover, particularly tenant-related claims. Check your policy wording carefully.
Damage resulting from failure to comply with the National Construction Code, local council requirements, or state minimum housing standards. This could include damage from defective wiring, inadequate drainage, or illegal building modifications.
Damage or loss resulting from the landlord's own illegal actions, fraud, or deliberate conduct. This includes knowingly renting a property that fails to meet minimum standards.
Normal end-of-tenancy cleaning, carpet shampooing, and minor scuffs or cosmetic wear are generally not covered. These are considered standard tenancy costs. State tenancy tribunals distinguish between fair wear and tear and actual damage.
Indirect losses such as decreased property value, inability to attract future tenants, or personal inconvenience. Landlord insurance covers direct physical damage and lost rent - not broader economic impacts.
Many policies exclude short-term letting (Airbnb, Stayz) unless specifically declared and agreed. If you let your property on short-stay platforms, verify that your policy covers this type of use or arrange a separate product.
Understanding these factors can help you find better value when comparing estimates.
Location is the single largest factor. Properties in flood-prone areas of Queensland, bushfire zones in NSW and Victoria, or cyclone-affected regions of North Queensland attract significantly higher premiums. The Insurance Council of Australia regularly publishes data on natural hazard risk zones.
The higher the sum insured, the higher the premium. Ensure your sum insured reflects the true cost to rebuild - not the market value or purchase price. Underinsurance remains a significant problem for Australian landlords, particularly as construction costs have risen.
Construction materials, the age of the building, and its condition all affect premiums. Older homes, properties with known defects, or buildings with non-standard construction may cost more to insure.
Previous claims - particularly repeated tenant damage or water damage claims - will increase your premium. Some insurers may decline cover if you have a history of frequent claims. A clean record over several years can work in your favour.
Opting for a higher voluntary excess will reduce your premium. Many landlord policies have a standard excess of $500-$1,000 plus your chosen voluntary excess. Tenant-specific claims may carry a separate, higher excess.
Each additional cover module - rent default, landlord contents, higher liability limits - adds to the overall premium. A basic landlord add-on might be $200-$500/yr extra, while a comprehensive standalone package could cost $1,500+ per year.
Indicative annual premiums for a standard 3-bedroom rental property in Australia.
Practical ways to manage your landlord insurance costs without compromising essential cover.
Premiums can vary by 30% or more for the same property. Get estimates from both mainstream insurers and specialists like Terri Scheer and EBM RentCover.
Building costs in Australia have risen considerably. An outdated sum insured could leave you underinsured and facing a shortfall at claim time. Use a rebuild cost calculator or get a quantity surveyor estimate.
Most insurers offer multi-policy discounts of 5-15% when you bundle landlord insurance with car, contents, or other property insurance. Ask about this when getting estimates.
Increasing your voluntary excess from $500 to $1,000 can reduce premiums by 10-20%. Weigh the savings against the higher out-of-pocket cost when you need to claim.
Conduct a thorough condition report with photos and video at the start and end of each tenancy. This protects you during the claims process and at tribunal hearings.
Good tenants reduce your risk profile. Use proper reference checks, employment verification, and rental history checks. Consider using a professional property manager for tenant selection.
Monthly payment plans typically include interest or administration fees that add 5-10% to your total annual cost. Paying the full premium upfront saves money over the year.
A well-maintained property is less likely to generate claims, which helps keep your premiums lower over time. Regular inspections (quarterly is common practice) also satisfy most policy requirements for landlord diligence.
Switching landlord insurance providers can save hundreds of dollars per year. Here is how to do it safely.
Start comparing quotes 2-4 weeks before your renewal date. Do not auto-renew without checking the market - there are often significant price differences between providers for the same property.
Ensure estimates include the same cover levels - especially tenant damage limits, loss of rent periods, and liability caps. A cheaper policy with lower limits may not provide adequate protection.
Set the new policy to start on the same day your old policy expires. Never leave a gap in cover - even one day without insurance could be costly if something happens. Confirm the start date in writing.
Contact your current insurer to cancel on the renewal date. Most policies do not auto-cancel when you take out a new policy elsewhere. If you cancel mid-term, you may receive a pro-rata refund of the unused premium.
A step-by-step guide to the landlord insurance claims process in Australia.
Take photos and video of all damage as soon as you become aware of it. Keep written records of dates, communications with tenants, and any evidence. Save the original condition report from the start of the tenancy.
Contact your insurer as soon as possible. Most policies require notification within a specific timeframe. Delay in reporting can affect your claim outcome.
For tenant damage, you may also need to lodge a claim with the relevant state tribunal - NCAT in NSW, VCAT in Victoria, or QCAT in Queensland. Your insurer may require this step.
The insurer will typically arrange for an assessor to inspect the damage. Keep the property secure but do not start repairs until you have received instructions from your insurer.
Once the claim is approved, the insurer pays for repairs (minus your excess) or settles the claim. For loss of rent, payments are typically made in arrears for the period the property is uninhabitable or between tenancies.
Key regulations, bodies, and considerations unique to being a landlord in Australia.
The Product Disclosure Statement is the legal document that defines exactly what your policy covers and excludes.
Landlord insurance PDS documents contain specific sections worth reviewing carefully:
These terms can vary between providers and significantly affect your cover:
When taking out or renewing landlord insurance, you must disclose:
Under Australian law, most general insurance policies come with a 21-day cooling-off period from the date you receive the policy documents. During this time you can cancel for a full refund (provided you have not made a claim). This gives you time to:
Common questions about landlord insurance in Australia.
Key terms used in landlord insurance policies, explained in plain language.
Protect your rental investment. Compare estimates from Australia's leading landlord insurance providers - free and no obligation.