Landlord insurance in NSW: what you actually need
Standard home insurance does not cover the things that go wrong with a tenant. Here is what landlord insurance covers, and why it is worth it.
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The short version
- Landlord insurance covers loss of rent and tenant damage that home insurance does not.
- Look for cover that pays out for both malicious and accidental tenant damage.
- Loss-of-rent cover protects you if a tenant defaults or absconds.
- The premium is generally tax-deductible on an investment property.
Why standard home insurance is not enough
A building or home policy covers the structure against fire, storm and the like. It does not cover the things that go wrong with a tenant: unpaid rent, a tenant who absconds, or deliberate damage. That is the gap landlord insurance fills, and it is the gap that costs landlords the most.
What landlord insurance covers
- Loss of rent if a tenant defaults, absconds or is evicted
- Malicious and accidental damage caused by tenants
- Legal liability if someone is injured at the property
- Contents cover for furnished properties
- Often an option to bundle building cover as well
What to look for in a policy
- Enough weeks of loss-of-rent cover to see you through a default and re-lease
- Malicious damage included, not just accidental
- A clear, fast claims process
- Cover matched to whether your property is furnished or unfurnished
Is landlord insurance tax-deductible?
The premium on an investment property is generally tax-deductible. Speak to your accountant, and while you are at it, ask about depreciation, which most investors under-claim.
How we help you stay covered
Insurers expect the basics to be in order: compliant smoke alarms, a property that is maintained, and a detailed condition report with photos. We handle all of that as a matter of course, which is exactly what makes a claim go smoothly if you ever need one. You can also find a landlord-insurance specialist through the Lifestyle Property Hub.
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Read the guide →Have us manage it
We keep your property claim-ready as a matter of course.
See how we manage →More than management
Your property deserves more than a manager. Through Lifestyle Property Hub, our growing network, landlords tap trusted property specialists, from buyers’ agents to mortgage brokers and tax-depreciation experts.
Explore Lifestyle Property Hub →Protect your investment properly
Book a free rental appraisal and we will make sure your property is compliant, documented and ready to lease.