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GuidesHome InsuranceLandlord Insurance: What Every Investment Property Owner Needs to Know
Home Insurance

Landlord Insurance: What Every Investment Property Owner Needs to Know

Why a standard home policy is not enough for rental properties — and what landlord insurance adds for tenant damage, rental defaults, and liability.

7 min read
Updated 2026-07-08By Emma Walsh · Consumer finance research

Key takeaways

  • Standard home insurance may not cover rental properties.
  • Landlord insurance adds tenant-related risks.
  • Check whether loss of rent is included.

Renting out a property introduces risks standard owner-occupier policies may not cover. Landlord insurance fills gaps around tenants, rent loss, and malicious damage.

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1Why standard cover may not be enough2What landlord insurance typically includes3Comparing landlord policiesQFAQs

Why standard cover may not be enough

Owner-occupier policies may exclude rental use. Landlord policies cover building plus risks like tenant damage, loss of rent during repairs, and legal liability to tenants.

What landlord insurance typically includes

Building cover, loss of rent if property is uninhabitable after insured event, malicious damage by tenants (varies), and public liability. Contents for furnished properties may need a separate landlord contents component.

Comparing landlord policies

Check loss-of-rent limits, tenant damage definitions, excess per claim, and whether the policy covers short-term rental platforms if you use them.

Tip

Notify your insurer when you start renting — undeclared rental use can void claims.

General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare

Frequently asked questions

Landlord insurance — tenant damage, rental default, liability, and how it differs from standard home cover.

  • Does landlord insurance cover tenant damage?

    Most landlord policies cover malicious damage caused by tenants (deliberate damage) and accidental tenant damage (careless damage). Sub-limits apply — the policy schedule will list the maximum payable for tenant damage events. Normal wear and tear is excluded under all policies.

  • What is the difference between a bond and landlord insurance?

    A rental bond (typically four weeks' rent) is held by the tenancy authority and can only be claimed after a formal assessment at the end of the tenancy. Landlord insurance can cover damage costs that exceed the bond and can be claimed more quickly in the event of significant damage or absconding tenants.

  • Does landlord insurance cover rent if the tenant stops paying?

    Rental default cover is available as an inclusion in many landlord policies — it pays a weekly benefit if a tenant defaults on rent, absconds, or the property is uninhabitable after an insured event. Conditions apply: typically a formal lease agreement and a legal eviction process must be in place.

  • Can I get landlord insurance for a short-term rental property (Airbnb)?

    Standard landlord insurance is designed for long-term tenancies. Short-term holiday rental properties face different risks and require specialist cover. Check with your insurer whether your policy covers short-term rentals or whether a separate holiday rental or sharing-economy endorsement is needed.

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1Why standard cover may not be enough2What landlord insurance typically includes3Comparing landlord policiesQFAQs

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