Maintaining a home
Should you consider Landlord Insurance?
1 July 2021
Wondering whether you need Landlord Insurance for your investment property? It‘s worth considering, as it can provide coverage for your investment in situations like:
- theft or burglary by tenants and their guests;
- loss of rent due to tenant default or your tenant cannot live at the property due to damage (for example by a storm or fire); and
- potential liability to pay compensation for death or bodily injury to other people^.
Without Landlord Insurance, you may find that you have to seek payment from the tenant or use their bond money to cover repair costs in the event of malicious damage caused by them or their guests.
You’ve worked hard to obtain an investment property — consider covering it with the level of Landlord Insurance that’s right for you.
What type of Landlord Insurance do I need?
The first decision you’ll need to make is the type of policy. Suncorp Insurance Landlord Insurance can cover:
- the property including the home and its permanent fixtures and fittings;
- the contents within the property that you own or are responsible for; or
Once you’ve chosen your policy type, you might want to look at optional covers you can pay extra for. Optional covers include:
- Accidental damage at the property;
- Motor burnout; and
- Safety net protection.
You can read more about the optional covers on our Landlord Insurance page and by reading the Product Disclosure Statement for more information.
How much Landlord Insurance do I need?
When you take out or renew a policy, you’ll need to determine a sum insured that is best for you. We offer a range if you are insuring the building. This is the maximum amount we’ll pay to repair or rebuild the property or contents following an insured event.
The sum insured you’ll need can vary depending on factors like the the size of the building and materials used, and what structural improvements you’ve made around the home (like the addition of a water tank or a new veranda).
When should I get Landlord Insurance?
While you can get Landlord Insurance at any time, it can’t be backdated. If you’ve just bought a new investment property, you may find it reassuring to purchase Landlord Insurance , rather than waiting until you have tenants.
How do I choose my Landlord Insurance?
When choosing your Landlord Insurance provider and policy, think about what you’d like to be covered for. There’s a few things to consider:
- Damage caused by natural disasters (is your investment property located in a storm, bushfire or flood-prone area?).
- Damage caused by tenants or their guests.
- Legal liability cover for injuries sustained at your property.
- Legal costs to recover rent owed to you or costs charged by your agent for attending court or a tribunal to attempt to recover unpaid rent.
To help you make your decision, have a look at any incentives or extras that might be complementery to your insurance. For example, Suncorp Insurance customers have access to Suncorp Benefits#, which allows you to save up to 15% at a wide range of popular Australian retailers.
What if I’m in a unique scenario?
here are some unique scenarios that might necessitate a conversation with your insurer.
- Renting a furnished home. Make sure to check whether your Landlord Insurance covers your contents, and if there are any circumstances in which it won’t.
- Renting out a strata title property. Strata Insurance may be required if your property is located in a strata building, where your rental home shares common property. Legislative requirements vary between states, so do some research to see what applies to your particular situation.
- How you could make a profit from property flipping
- Does your home insurance cover fire damage?
- Does home insurance cover water damage?
^ Conditions apply. See the Product Disclosure Statement for more information.
Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Read the Product Disclosure Statement before buying this insurance. Any information or advice is intended to be of a general nature only and has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Information Document before making any decisions about whether to acquire a product.