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.
Related guides
Maximise your rental return
The levers that lift your rent and cut vacancy.
Read the guide →NSW landlord responsibilities
Your legal obligations in plain English.
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 →Disclosure: some Hub partners are referral relationships and we may receive a fee if you engage them; we only work with specialists we believe genuinely benefit our landlords.
Protect your investment properly
Book a free rental appraisal and we will make sure your property is compliant, documented and ready to lease.
General information only, not financial advice. Check the product disclosure statement and your own circumstances before choosing cover, and speak to a licensed adviser if you are unsure.