Malicious damage vs wear and tear: What landlords need to know

• Malicious damage is done on purpose, but wear and tear happens over time. The difference matters because it can affect your claim.
• Allianz Landlord Insurance covers malicious damage by tenants, subject to policy terms. It doesn’t cover wear and tear.
• To help support your claim, keep records such as rental property condition reports and photos. 
  
  

This can be confusing, so to help you work out if you have a valid claim, we explain the difference.

If a tenant damages your property on purpose, it’s malicious damage. This type of damage isn’t caused by day-to-day living at home. It’s not wear and tear or accidental damage.

Examples include:

• Doors kicked in
• Carpet that’s cut or burned on purpose
• Deliberately smashed benchtops or vanities

Wear and tear happens from people using things around the home over time. Also, as the property ages, marks and other signs of ageing and use appear. Wear and tear includes depreciation, gradual deterioration or lack of maintenance. 

Examples include:

• Faded or fading paint
• Cracks in walls or sagging floors due to the age of the property
• Loose door handles or hinges
• Minor scuff marks on the walls, including holes or marks from hanging pictures
• Worn carpets or floor tiles
• Ageing household fixtures and fittings

Wear and tear is a home maintenance issue rather than an insured event.

Some landlords may believe that insurance covers all damage, but it doesn’t.

Insurance covers certain insured events as shown in the policy document. It doesn’t cover every issue. Some issues are just part of owning a property. For example, if an old carpet has bare patches after years of use, that’s just wear and tear.

However, if a tenant cuts the carpet on purpose – that’s a different type of damage. It’s not wear and tear, so it may be covered under malicious damage.

Throughout 2025, we closed 6,500 malicious damage claims and paid out a total of $73.8 million.

At Allianz, we know making a claim can be stressful, and we’re here to help you through the process. That’s why we offer 24/7 online claims.

Here are some examples where the cause of damage may be less clear.

We’ll ask you for relevant information about the damage. Every claim is different, and we need to check the evidence for each case.

These are the sorts of things our claims team ask:

• What caused the damage?
• When did it happen?
• How did it happen?
• Was the damage sudden?
• Did it develop over time and did the tenant try to fix it?
• What was the property's condition like before the tenant moved in?

Claims can be complex, so we need to understand what happened. Then we can see whether your policy covers the damage.

Good, up-to-date records can show when the damage happened.

We suggest keeping:

• Entry and exit condition reports
• Photos and videos
• Inspection reports
• Tenancy agreements, lease documents, and tenant emails
• Maintenance records and repair quotes

For further tips, legal updates, and landlord’s rights and responsibilities, visit your state or territory government website.

We hope you never have to go through the stress of dealing with malicious damage to your property. However, taking these simple steps now can help if you need to claim in the future.

Before your tenant moves in, take notes and photos of your property’s condition. Otherwise, if there’s damage during the tenancy, it can be harder to prove it.

Record the following and include photos, where possible:

• Every room
• Walls
• Floors
• Carpets
• Appliances
• Outdoor areas

To help you spot problems early, carry out regular inspections. These will record the condition of your property over time.

Fix small issues before they become bigger ones. Regular maintenance helps keep your property in good shape. It may also reduce the chances of any repair disputes. For property maintenance tips and resources,  visit the Allianz Prevention Hub.

This really depends on your cover and what caused the damage.

Allianz Landlord Insurance covers malicious damage by tenants, subject to policy terms, conditions, limits, and exclusions. Insurance doesn’t cover wear and tear or issues caused by poor maintenance.

For full details of what your policy covers, read our Product Disclosure Statement (PDS).

Clear evidence may speed up the claims process. 

1. Take photos and videos.
2. Gather your records, such as condition reports.
3. Get repair quotes.
4. Make your claim.

If you don’t have all the details yet, you can still submit your claim. To add more details later, just contact us.