First, the distinction that matters: landlord insurance is not building insurance. Building insurance covers the structure, fire, storm and the like. Landlord insurance covers the risks of renting: lost rent, tenant damage and legal costs. A fully protected investment needs both, and most of our clients keep their building policy separate from their landlord policy, because a standalone building policy usually works out cheaper than bundling the two together.
We work alongside three landlord insurance specialists. All three specialise in tenancy risk, which matters, because a standard home policy does not cover the things that actually go wrong in a rental. We are not insurance advisers so we cannot choose for you, but here is a factual comparison of the main points so your choice is an informed one. In every case the Product Disclosure Statement is the document that governs, and you should read it before deciding.
- Loss of rent: rent default up to 6 weeks; denial of access, death of tenant, and loss of rent during repairs each up to 52 weeks, capped at $1,500 a week
- Tenant damage: accidental, intentional and malicious up to $70,000
- Pet damage: up to $70,000, including pets not named on the lease
- Meth lab clean up: up to $70,000
- Liability $30 million, and it covers periodic month to month tenancies
- Excesses: nil on loss of rent; $400 tenant damage, pet and drug lab; $500 water, fire, storm
Terri Scheer, Landlord PreferredRead the PDS
- Loss of rent: eviction or absconding up to 20 weeks; failure to give vacant possession up to 28 weeks; prevention of access or untenantable after tenant damage up to 52 weeks; hardship 4 weeks, rent capped at $1,500 a week with higher available
- Tenant damage: contents and building combined up to $70,000
- Pet damage: capped at $5,000; carpet scorching $1,000
- Drug related contamination: the PDS excludes loss arising from illegal drugs, and from cigarette or vape smoke, so if this risk matters to you, read that section closely
- The policy also excludes loss connected with parts of the property not in good condition, such as leaking roofs, blocked gutters or unrepaired damage, which is one reason we stay on top of maintenance
- Excesses: no excess on loss of rent; $500 tenant damage; $250 pet or scorching; $100 other claims
- Weekly rent is capped at $1,250 unless a higher amount is listed on your certificate, so if your rent is above $1,250 this must be raised at quote time
- Loss of rent: damage related and eviction refusal up to 52 weeks; departure without notice or court ordered termination up to 20 weeks, court ordered capped at $25,000; hardship 12 weeks capped at $15,000; domestic violence 20 weeks capped at $25,000; death 26 weeks
- Tenant damage and theft up to $70,000, and drug contamination up to $60,000, but note both tenant default and tenant damage are optional sections, so check they appear on your certificate
- If the tenant has been in arrears or breach in the 90 days before the policy starts, default and damage cover does not apply until arrears are cleared and 90 clean days pass
- Claims are paid after bond monies, which the policy defines as at least four weeks rent whether or not that bond was actually collected
- Excesses: nil on loss of rent, tenant default and deliberate damage; $250 most damage claims; $500 flood
Across all three: these policies sit alongside your building insurance, they do not replace it. All exclude loss where the property is poorly maintained, which our inspection and maintenance program is designed to prevent. And every insurer requires arrears and breach action to be taken promptly, which is exactly how we run your file.