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Landlord Insurance FAQs

Landlord insurance can cover your investment property from loss and damage and tenant issues, helping you protect your rental income.

Here we answer the most frequently asked questions about landlord insurance, including what’s covered, what’s not covered, ways to lower your premium, and why it’s important.

Landlord insurance basics

Landlord insurance is specifically designed to protect your investment property from loss or damage when renting out your unit, apartment, or house. Landlord insurance can protect you against insured events that lead to theft or damage to your investment property and a loss of rental income.

Your landlord insurance can be tailored to provide cover for:

  • Buildings cover only: coverage for insured events that damage your property’s structure.
  • Contents cover only: coverage for insured events related to the damage or theft of household goods that you own and have provided for your tenants use, within your rental property. This can also include things like carpets and floating floorboards.
  • Combined buildings and contents: coverage for insured events related to both buildings and contents. For example, depending on your policy, you may be covered if your investment property, or the contents inside it, are damaged in a flood, fire, cyclone, earthquake, storm or other events.

Landlord insurance can also provide protection against the risks that come with renting out your property. ANZ Landlord Insurance includes loss of rent if your rental property is so damaged by an insured event that it can’t be lived in.

Legal liability cover is also included, which insures you for claims made against you if you are legally liable for the death or injury of another person, or the loss or damage of another person’s property. The cover varies depending on if you have buildings cover, contents cover or both.

For a full list of events covered by ANZ Landlord Insurance, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Many property investors take out landlord insurance to obtain a level of protection for their investment properties. Landlord insurance can cover some of the costs should you need to repair your investment property, or replace contents damaged or lost in insured events.

If you have a mortgage on your investment property some lenders may require proof of insurance as a part of their loan settlement requirements, to ensure they are protected against the financial risk caused by unexpected damage or loss to your property.

Landlord insurance is a financial product designed to protect your investment property from the risks associated with renting, such as theft or damage caused by a tenant, as well as natural disaster-related risks such as bushfires, floods, cyclones, earthquakes and storms.

When you take out a landlord insurance policy you make a payment, also known as a premium, to your insurer, which covers you against the insured events outlined in your policy. You should carefully read any relevant policy documents such as your PDS to understand what’s covered and any limits, conditions or exclusions that apply. If your property is impacted by an insured event, you can submit a claim against the event. Your insurer will assess whether the event is covered, and then pay out the relevant portion of the losses covered under your policy.

Your ANZ Landlord Insurance can be tailored to cover insured events relating to the buildings only, contents only, or both.

ANZ Landlord Insurance includes loss of rent if your rental property is so damaged by an insured event that it can’t be lived in.

For more information on how landlord insurance works, including what is and what is not covered under your policy, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

If you have a mortgage on your property, most banks require you to take out a building insurance policy regardless of whether it is an owner occupied or an investment property. This helps protect you, as well as the financial institution, against the risks associated with building damage caused by natural events.

Check with your mortgage provider if building insurance is a requirement under your mortgage or home loan policy. Let your insurer and mortgage provider know if your circumstances change, such as if you decide to start renting out your primary residence.

What may distinguish landlord insurance from home insurance is that it provides protection for problems unique to landlords. Like home insurance, landlord insurance can be tailored to cover your buildings, contents or both. ANZ Landlord Insurance provides coverage against the following insured events: 

  • loss of rent should your building become unliveable due to loss or damage from an insured event
  • loss of rent if your sole tenant passes away
  • replacing stolen, lost or damaged keys and and/or recoding of locks and barrels
  • theft and intentional damage by a tenant

For a full list of events covered by ANZ Landlord Insurance, as well as the terms, conditions and exclusions, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Learn more about the differences between landlord, and home and contents insurance: 

Strata insurance provides cover for shared or common property in a strata-managed complex, owners’ corporation or body corporate-managed complex. A strata policy normally covers properties (such as apartments or units) within one building or complex. This policy generally covers external areas such as balconies, common-area gardens, intercoms and garages.

If your investment property is a strata-managed apartment or townhouse, you may already have cover for building insurance. It’s important to check with your strata or body corporate to determine what’s covered under strata and what areas you are responsible for.

Generally, buildings cover for landlord insurance, does not cover strata-managed buildings. However, ANZ Landlord Insurance can cover the contents contained in strata-managed properties under a contents policy.

It’s worth noting that strata laws and strata insurance differ state by state. It’s worth doing some research to understand what you’re covered for under your state legislation.

Cover details

What you are covered for will vary depending on your policy and choice of cover. A landlord policy can cover the costs associated with the loss or damage to your buildings and/or contents from an insurable event.

ANZ Landlord Insurance can cover the costs incurred from damage or loss to buildings and/or contents arising from insured events including:

  • accidental breakage of glass such as windows or mirrors
  • burglary, break-in or theft (including by tenants or paying guests)
  • deliberate or intentional damage caused by tenants or paying guests
  • damage caused by natural events, such as a bushfire, flood, cyclone, earthquake or storm
  • impact damage, such as damage caused by a falling tree

ANZ Landlord Insurance includes loss of rent if your rental property is so damaged by an insured event that it can’t be lived in, or if your sole tenant passes away. 

ANZ Landlord Insurance also includes legal liability cover, which insures you for claims made against you if you are legally liable for the death or injury of another person, or the loss or damage of another person’s property.

Cover varies depending on if you have buildings cover, contents cover or both. 

For a full list of events covered by ANZ Landlord Insurance, as well as the terms, conditions and exclusions, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Landlord insurance doesn’t cover everyday expenses involved in owning an investment property. This includes when your property doesn’t have anyone living in it and you are not receiving any rental income, general wear and tear of your property’s structures or fixtures, or regular maintenance issues, such as a plumber’s bill for unclogging a sink.

Other exclusions include:

  • Loss or damage from maintenance or repair done by tenants, or others acting on their behalf, such as friends or a partner
  • Furniture, clothing and personal items, such as laptops and phones owned by the tenant
  • Previous damage that hasn’t been repaired
  • Loss or damage caused by pets belonging to tenants or paying guests, or their visitors

As a landlord, it’s important you have a tenancy agreement (also called a lease) in place so both parties understand the terms of the lease and exactly what’s covered. Having a clear and valid tenancy agreement is a requirement to be eligible for tenant theft coverage under ANZ Landlord Insurance. 

For a full list of exclusions and events not covered by ANZ Landlord Insurance, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Rental protection coverage varies between insurers, so it is recommended that you check your policy. ANZ Landlord Insurance, provides cover for loss of rent for insured events including: 

  • the building becoming unliveable due to loss or damage from an insured event
  • your sole tenant passes away

As a landlord, it’s important you have a tenancy agreement in place, so both parties understand the terms of the lease and exactly what’s covered. Having a clear and valid tenancy agreement is a requirement to be eligible for optional rent default as well as tenant theft coverage under ANZ Landlord Insurance.

For more information on the terms and conditions, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB)

Short-term and holiday rentals

A long-term rental is a formal lease where the entire property is rented out as a residence and not for short-term holiday purposes.

A short-term rental (sometimes called a ‘casual let’ such as an Airbnb or Stayz) is where you rent the entire property to paying guests for short-term holiday purposes. The rental period under a casual let must be less than 3 months.

For more information on the terms and conditions, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Check with your insurer to see exactly what’s covered. What you are covered for will depend on your policy and how you are looking to rent out your property. Home insurance generally will not protect you against loss or damage caused by tenants or loss of rent – whereas landlord insurance may provide cover.

An investment property used for short term rentals such as Airbnb and Stayz is covered under our ANZ Landlord Insurance. However, our ANZ Landlord Insurance policy does not provide rent default cover for short-term holiday rentals.  

Some short-term rental platforms, such as Airbnb, offer public liability and property insurance for hosts. Be sure to check the terms and conditions to know what you are covered for.

Costs and claims

The cost of your landlord insurance premium can vary based on a number of factors, including things like where the property is located, the value and type of property, the year it was built and how much it might cost to rebuild. In the case of buildings cover, it can even take into account the slope of the land it is built on.

Investment properties in areas prone to natural disasters, or in postcodes where tenants default on rent or cause property damage at above-average rates can attract a higher premium, so do your research before purchasing in these areas.

Other factors that can influence your premium include:

  • the building type, occupancy, construction materials
  • your contents sum(s) insured
  • the cost to rebuild
  • type and frequency of claims you have made
  • the excess you have chosen
  • discounts you may be eligible for

Premiums are also subject to Commonwealth and State taxes and/or charges, including things like GST and Stamp Duty, which will be listed on your Policy Schedule.

There are several ways to lower your landlord insurance premium costs. Ask your insurer about any discounts or concessions you may be eligible for. Some common options to lower your premiums include:

  • paying a higher excess
  • discounts for seniors (also known as the over-50s discount)
  • taking out multiple policies with the one insurer to qualify for a multi-policy discount

ANZ offers a multi-policy discount, which lowers the cost of your premium should you hold multiple eligible ANZ insurance policies.

To be eligible you must hold two or more current ANZ Home, Landlord or Car Insurance policies and have the same name on each eligible policy.

For more information surrounding your ANZ Landlord Insurance Premiums, including how to be eligible for a multi-policy discount, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

According to the Australian Taxation Office (ATO), any expenses related to the management or maintenance of your investment property are generally eligible for an immediate tax deduction disclaimer. This includes your landlord insurance premiums.

Other expenses that may be eligible for an immediate tax deduction include:

  • advertising to find new tenants
  • body corporate fees and charges
  • council rates, water charges and land tax
  • regular property maintenance, such as cleaning, gardening and pest control
  • repairs or maintenance related to wear and tear as a result of renting out the property
  • property agent's fees and commission
  • some legal expenses
  • interest payments on investment loans used to purchase a rental property

You can only claim a deduction for these expenses if you actually pay for them and they are not paid for by the tenant.

Learn more about tax-deductable rental expenses:

If you are unsure about the tax consequences of your policy, seek professional advice from a tax adviser.

Contact your insurer as soon as possible. For ANZ customers, you can make a landlord insurance claim 24/7 by completing the claim form online or speak to us over the phone by calling 13 16 14 from 8am-7pm Sydney time. ANZ Claims Assistance Service, is operated by QBE Insurance (Australia) Limited, the product issuer.

Your landlord insurance provider will ask you a series of questions about the loss or damage. To avoid delays, make sure you’ve got all the necessary supporting information before submitting your claim:

  • Have your policy number handy
  • Gather the date and details of the event that’s led to you making a claim
  • Collect any supporting documents. This may include photos of damaged items or receipts of purchased items. Depending on the nature of your claim, you may need to provide a copy of a current and valid tenancy agreement
  • In the event of a theft, you should contact the police to report the incident. The police will provide an event report number which you may need for your claim

Depending on the extent of the loss or damage, an assessor may be sent to inspect your property. They may also arrange for qualified tradespeople, such as builders, plumbers or electricians to inspect your property and to provide quotes for repairs. Alternatively, you may be asked to obtain your own quotes for repairs.

It is important not to authorise any repairs to the property or replace any contents until talking to your insurance provider, unless it’s an emergency.

For more information on how to make a landlord insurance claim, including how claims are settled and associated conditions, please refer to the ANZ Landlord Insurance Product Disclosure Statement (PDF 709kB).

Protect your investment property from these #RentalFails

You wouldn’t believe what happens next. See why it’s important to consider protecting your property with landlord insurance with these ‘#RentalFails’ videos that show some of the crazy things your tenants could get up to or some of the extreme weather that could hit your investment property in Australia.

View more #RentalFails

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This information was published on 15 June 2021 and is subject to change.

ANZ Landlord Insurance is issued by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239 545) (QBE) and distributed by ANZ under its own license. ANZ recommends that you read the ANZ Financial Services Guide (PDF 129kB) and ANZ Landlord Insurance Product Disclosure Statement and Policy Document (PDF 709kB) (available online or by calling 13 16 14) before deciding whether to acquire, or to continue to hold, this product.

Although Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 AFSL 234527 distributes these products, ANZ does not guarantee or stand behind the issuers or their products.

This information is of a general nature and has been prepared without taking account of your personal objectives, financial situation or needs. Before acting on the information, you should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs.

The ANZ App is provided by ANZ.  Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

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Taxation law is complex and this information is our interpretation of the law. It has been prepared as a guide only and does not represent tax advice. You should seek independent tax advice specific to your individual circumstances from a tax adviser or registered tax agent.

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