If you own a Queensland property and rent it out, or are considering doing so, you probably need to know a little – or a lot – about landlord insurance. It’s an important part of being a landlord and is a wise strategy to protect your investment in the best way possible. Here’s what you need to know.

What landlord insurance is

We all know what home insurance is – and landlord insurance is similar. However, instead of covering your own home for loss or damage to buildings and fixtures caused by an insured event, it covers a rental property for the same things.

What landlord insurance ISN’T

Landlord insurance is a specific policy that covers specific things. It doesn’t cover other things, such as the tenant’s contents and personal effects. Tenants will have to organise their own contents insurance in a rental situation to ensure they are covered.

Landlord insurance is also different to body corporate insurance, which protects lot owners in a strata building from loss or damage to the body corporate property as a whole. Body corporate insurance covers the common property and body corporate assets for loss and damage, as well as all costs necessary for the reinstatement or replacement of the building.

What landlord insurance covers

Landlords are legally responsible for protecting their property against insurable events which could cause loss or damage. Keep in mind though, that each landlord insurance policy is different, and cover can vary between policies in Queensland. But generally speaking, landlord insurance will cover:

• Loss or damage to fittings and fixtures inside your property – things that you as a landlord have installed, and which will remain with the property no matter who is occupying it. Think air conditioners, dishwashers, heaters, stove, curtains and carpet etc.
• A range of incidents and events which may cause damage to your property, such as storms, fires, cyclones and earthquakes.
• Theft, vandalism or malicious damage which is caused by your tenants or their visitors.
• Your legal liability if a problem with your property causes damage, loss, injury or death to someone on the property.

Landlords may also be able to take out policies covering loss of rent if a tenant moves out, or if a tenant is unable to occupy the property due to repairs or the property being deemed unliveable for a period of time. Other optional extras include cover for rent default (if a tenant doesn’t pay the rent), water damage, and motor burnout (when an electric motor in an appliance less than ten years old burns out). It’s really up to the landlord how much coverage they want included – and it’s wise to shop around and find a landlord insurance policy that will cover you for everything you need.

Do I need landlord insurance?

Landlord insurance in Queensland is not compulsory. However, it is wise. Things can always go wrong in a rental property, many of which are beyond your control, such as weather events. A landlord insurance policy can protect you from costly repairs that may arise from an incident – and give you great peace of mind. It won’t stop things going wrong – but it will certainly make it easier if and when they do. If you intend to rent out your property, it’s a smart choice to purchase landlord insurance as a separate policy to your body corporate insurance.

Need advice about landlord insurance or all things body corporate? Get in contact with the leaders in body corporate management in Queensland here: https://www.capitolbca.com.au/

To read more about body corporate insurance, click here: https://www.capitolbca.com.au/2022/04/11/building-insurance-vs-lot-owners-insurance/