Do I need Landlord Insurance?

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.