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What is landlord insurance?

Last updated on July 15, 2025

Landlord insurance is a type of insurance tailored to cover investment properties. It covers different risks that you face as a landlord. These include lost rental income, property damage, and liability issues.
You can typically buy a landlord building-only or landlord contents-only policy, or you can combine both.

Find out about:

Smiling female departing a residential home and exiting up a driveway with a handbag

Landlord insurance vs home insurance: What do I need?

Home insurance is designed for people who live in the property full-time. It usually covers:

  • The building and your personal belongings

Landlord insurance is designed for people who rent their property out to a tenant. It usually covers:

  • The building and any contents you provide (but not your tenant’s belongings)
  • Loss of rent because of damage from an insured event
  • Legal liability if a tenant is injured
  • Extra cover for things like tenant damage

Like many insurers, we don’t offer home insurance for investment properties. This is because they come with different risks, like rent not being paid or the property being left empty.

Landlord insurance for strata units

If you pay strata fees and live in a unit, you probably don’t need a separate landlord building insurance – unless they tell you otherwise. Your strata insurance typically covers the building structure (walls, roof and shared areas).

However, you may want to consider landlord contents insurance instead. This covers:

  • Fixtures and fittings within your unit (e.g. carpets, curtains, internal light fittings)
  • Contents you’ve provided (e.g. a fully furnished apartment)
  • Appliances you’ve provided (e.g. dishwashers, air conditioners)
  • Loss of rent if your property becomes uninhabitable due to an insured event
  • Tenant-related damage (malicious, or theft)
  • Legal liability as a landlord (if someone is injured in your unit)
Summary
Type of cover

What about my bathroom or kitchen – are they covered?

Allianz Landlord Contents Insurance can cover fixtures, fittings, or improvements in a strata unit. This applies when they aren’t covered by your building’s strata insurance.

This can include:

  • Kitchens or bathrooms
  • Built-in wardrobes
  • Built-in appliances, like ovens and rangehoods

For example, if your kitchen is damaged by an insured event, landlord contents insurance can cover you.

However, building issues, such as a leaking pipe behind the wall, is typically covered by strata. Strata insurance only covers issues within common property. Check with your strata manager to confirm.

What insurance do I need for a freestanding investment property?

You have a choice of landlord building insurance, landlord contents insurance or you can combine both.

Building insurance covers the structure itself (like walls, roof and fixtures). Contents insurance covers items you’ve provided inside the home.

Do I need contents insurance as a landlord of a freestanding home?

You may want to add contents insurance cover to your policy if your property is fully or partially furnished. This can include:

  • Furniture
  • Curtains or blinds
  • Appliances like fridges or washing machines
  • Carpets or rugs
"Landlord insurance shouldn't be a set and forget. Review every year to make sure your cover still works for you. For example, has your property’s sum insured increased? Do you have new items you need to insure?"
Sujay Gangadharan, Allianz Home Insurance Product Lead

When can landlords claim for loss of rent?

You can claim for lost rent if an insured event damages your property. If your tenants can't live there for at least seven days, you can file a claim1. We'll cover the weekly rent for up to 12 months.

Insured events include:

  • Theft, burglary, or housebreaking
  • Fire or smoke
  • Malicious acts
  • Storm or rainwater
  • Flood and/or run-off
  • Water or other liquid damage
  • Accidental breakage of glass

This is only a brief summary. Always read the product disclosure statement for the full list.

What if my tenant stops paying the rent?

Some insurers also offer rent default cover. This can help if your tenant stops paying rent. You can add Rent Default cover to your Allianz Landlord Insurance policy for an additional premium. It’s available with both Building and Contents cover.

Am I covered if my tenant damages the property?

Allianz Landlord Insurance covers you for malicious or intentional damage caused by tenants. This can include covering lost rent if your property becomes uninhabitable due to the malicious damage by the tenant.

However, Landlord Insurance doesn’t cover you for accidental damage by your tenant. You’re covered if your tenant accidentally breaks glass or ceramic items though. Damage caused by negligence isn’t covered. For example, if a tenant spills something on the carpet or makes a hole in the wall.

Find out more about what is and isn’t covered by Allianz Landlord Insurance.

Maintenance responsibilities and wear and tear

As the landlord, you’re responsible for ongoing maintenance.

For example, if you don't clean the gutters, water can back up and damage the roof or walls. Insurance usually won’t cover damage caused by poor upkeep, so staying on top of maintenance is important.

Could a claim be denied due to lack of regular inspections?

Yes, it’s possible. If you don’t do regular inspections and something goes wrong, like a slow leak, the insurance company might deny your claim. Regular home maintenance checks help catch small problems before they turn into big ones.

What counts as wear and tear and is it ever covered?

Wear and tear means the normal ageing and use of things in the home. This includes faded paint, worn carpets or small cracks in the walls.

Landlord insurance doesn't cover wear and tear. Insurance helps cover sudden damage, like from a fire or theft. It doesn't cover the slow wear of everyday items.

Frequently asked questions

Yes, standard home insurance won’t cover an investment property. You’ll need landlord insurance.
Some specialist policies may cover you, but many standard policies don’t. Allianz Landlord Insurance doesn’t currently cover short-term rentals or Airbnb.
The landlord pays for building insurance as the property is your responsibility. Tenants may want to get contents insurance for their belongings.
Yes, fences are often covered. We cover fences as part of your Building Insurance cover.

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Disclaimer

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

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*Conditions apply

  1. Rental costs after an insured event

    Covers the equivalent weekly rent if your tenants can’t live in your investment property for at least seven days due to damage caused by an insured event. We’ll pay for your loss of rent on the insured property for the time necessary to reinstate your building, or for which access to the building is denied, or up to a maximum of 12 months, and whichever period of time is lesser. Applicable only when you have building cover, or if the building is part of a strata title development and you have contents cover.

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Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 is the insurer of any general insurance products offered, and Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFS Licence No. 296559 is the insurer of any life insurance products offered. Each entity is responsible for any statements and representations made about its products, on this website.