If you’re renting out a property in Australia, you might assume standard home insurance has you covered. But many landlords only realise the gaps in their policy when it’s too late – after a tenant stops paying rent, causes damage or raises a legal dispute.
In this article, we unpack why standard insurance often isn’t enough for landlords, what a specialist policy includes and how specialist landlords insurance can help you protect your property and rental income.
What is landlords insurance?
Landlords insurance is specifically designed for property owners who lease out residential property. It covers a range of risks that standard home policies usually don’t – including tenant-related issues like:
Loss of rent if your property becomes uninhabitable due to damage
If your rental property suffers damage from events such as fire, storm, flood or other insured incidents, making it unsafe or impossible for tenants to live in, loss of rent cover helps protect your income. This means you won’t lose out on rental payments while repairs are being carried out, giving you peace of mind and financial security during unexpected disruptions.
Landlord liability if someone is injured on your property
As a landlord, you can be held legally responsible if a tenant, visitor or contractor is injured while on your property. Landlord liability insurance covers you against claims for personal injury or property damage caused by accidents that happen on the premises, helping protect your finances from potentially costly legal actions and compensation claims.
Damage by tenants beyond normal wear and tear
While some minor wear and tear is expected over time, sometimes tenants cause accidental or intentional damage that goes beyond what’s reasonable. Landlords insurance can cover repairs or replacements needed due to tenant damage, such as broken windows, damaged carpets or holes in walls, helping you keep your property in good condition without bearing the full repair cost yourself. However, coverage for malicious or intentional damage varies by insurer and policy, with some excluding these types of damage unless specifically included – our specialist Landlords Insurance team can help you understand your coverage and choose the right policy for your needs.
Legal expenses relating to tenancy disputes
Disputes with tenants over unpaid rent, lease breaches or eviction can lead to costly legal proceedings. This insurance covers the legal costs and expenses incurred when you need to resolve tenancy disagreements through mediation, tribunal hearings or court, helping to reduce the financial burden while protecting your rights as a landlord.
Why standard home insurance often falls short
Your property is a valuable source of income and an investment that needs to be protected.
Home and contents policies are designed for owner-occupiers. That means key landlord exposures – like tenant default or damage – are either not covered, or not adequately covered. If you’re relying on rental income to meet mortgage payments or other financial goals, those gaps can quickly become costly.
The risks landlords commonly face
Rental arrears and tenant financial stress
One of the most pressing challenges is the risk of rental arrears. Tightening vacancy rates and increased rental demand leads to rental competition and affordability pressure for tenants. For landlords, this translates into a higher likelihood of tenants falling behind on rent.
Disputes and legal proceedings
Legal and tribunal disputes are another common risk. Thousands of tenancy-related cases – such as unpaid rent, property damage and breaches of lease agreements – are handled each year by state and territory tribunals. These disputes can quickly escalate into costly and time-consuming proceedings. Whether you own one investment property or a larger portfolio, these risks are real – and having the right protection in place can make a significant difference.
A specialist solution, just for landlords
To help meet the needs of today’s property investors, Whitbread has launched a dedicated website: www.landlordsinsurance.com.au.
Landlords Insurance by Whitbread Insurance Brokers provides insurance protection for your liability as a landlord, as well as cover for loss of rent, rent default, landlord contents and more. It’s a simple, streamlined way to access tailored protection, backed by over 45 years of insurance expertise.
The new site allows landlords to obtain an instant online quote by answering a few simple questions about their property. Once you receive your tailored quote, you can purchase your policy and pay securely online in just minutes. You can also lodge claims and access useful information all in one convenient place, while still enjoying the trusted support of the Whitbread Landlords team by phone whenever you need it.
Is landlords insurance right for you?
If you’re a landlord or property investor, having the right cover can safeguard not just your bricks and mortar, but also your long-term financial goals. From tenant-related risks to legal liability, specialist landlords insurance gives you peace of mind that your investment is protected.
While landlord insurance is not compulsory in Australia, it is highly recommended given the potential risks involved in renting out property. Protecting yourself with the right policy can save you from unexpected costs and legal headaches down the track.
Learn more
Powered by Whitbread Insurance Brokers, Landlords Insurance offers specialist protection and expert guidance tailored for Australian landlords. To explore your options, visit www.landlordsinsurance.com.au.
For personalised advice or any questions, call us on 1300 409 370 or email info@landlordsinsurance.com.au. We’re here help protect everything you’ve worked hard for, allowing you to plan for your future with greater certainty
T: 1300 424 627
E: info@whitbread.com.au
Important notice
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Whitbread Insurance Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Whitbread Insurance Broker.
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228, License Number 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
