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What is Landlord Insurance?

Negative gearing; equity; rental income – you’ve gone through all the numbers and done the math when it comes to renting out your home. Before handing over the keys to your property manager, there is one part of the equation you’ll need to include in your calculation.

Landlord Insurance has been designed to cover you for risks generally faced by landlords when renting out their property. It is an enhanced form of home building (and/or contents) insurance, which includes cover for the events a traditional home insurance policy would be expected to cover, such as storm and fire, but has additional features which are applicable to you as a landlord such as cover for pet damage.

The Landlord Insurance arranged by Aon can cover your property for damage as well as any loss of income you might sustain while the property is out of action and includes1:

  • Loss of rent
  • Damange by tenants to contents
  • Liability cover
  • Flood
  • Clean up costs associated with illegal drug protection
  • Rent default2
  • Pet damage.
For more information, refer to What does Landlord Insurance cover? section below.

Why do Landlords need insurance?

Investment property owners have a lot on their shoulders. From the moment the lease agreement is signed, the responsibilities of fixing the leaky tap, the loose door hinge and the faulty power point all sit with the landlord. Having tenants in a home can bring additional complexities, such as liability on an owner's part, or tenants causing damage to the rental house. If a landlord's negligence causes a tenant or their visitors to suffer an injury, or if tenants leave the property in a shocking condition, the headache of legal fees or repair costs will be a big strain on a property owner's pocket. Landlord insurance can help provide comfort of having cover in place for these types of mishaps.

Are you a Real Estate Agent? 
If you're a Real Estate Agent who looks after rental properties, you can arrange Landlord Insurance through Aon on behalf of your clients. Click here to access Real Estate Agent resources. 

If you'd like to become a Landlord Insurance Distributor and be able to earn commission, refer to the Distributor Guide below or contact us on 1300 734 274 or au.propertymanagers@aon.com.

Why choose Aon for Landlord Insurance?

Aon is committed to making life easier for you by arranging insurance that’s easy to understand, buy and manage, so you can get quotes and take out a policy online. Or if you do need help, our team of friendly experienced brokers are a phone call away to help you understand what insurances you may or may not need, but more importantly, why. Helping give you confidence that you’re making a better decision for you and your business.

Aon is a proud partner of the Real Estate Institute of Australia (REIA), the Real Estate Institute of Queensland (REIQ), the Real Estate Institute of Western Australia (REIWA), the Real Estate Institute of Victoria (REIV) and the Real Estate Institute of Northern Territory (REINT).

Aon arranges two types of Landlord Insurance policies

Rental Protection Plus Advantage

The level of cover and price are fixed per state, refer to Premiums information below. Rental Protection Plus Advantage includes set cover for:

  • Contents up to $50,000
  • Loss of Rent up to $50,000
  • Malicious & Accidental Damage up to $50,000
  • Liability $20 Million
  • Basic Excess $100.

Rental Protection Plus

This is a tailored insurance policy where you pay only for the cover you need including building insurance. Premiums vary depending on the cover and excess selected. To arrange a quote, contact us on 1800 105 900 or complete the Building Insurance form.
 

What does Rental Protection Plus Advantage Landlord Insurance cover?

Storm
If your contents are is damaged by a severe storm, Landlord Insurance may cover some of the cost to repair the damage, subject to exclusions, such as shade cloths, swimming pool covers and other similar items of property.1
Public Liability
Up to $20M per event

This section of the policy protects you against claims pursued by your tenants or third parties where it is alleged that your negligence as a landlord has caused that other party personal injury or damage to property.1
Malicious Damage by Tenant
Up to $50,000
$100 excess per event

If your tenants maliciously and deliberately vandalise your property or steal items belonging to you but kept at the premises, the cost to repair or replace these items may be covered.1
Fire
If there is a fire at your rental property, cover is available to contribute to repairing the resulting damage to your contents or to repair or replace damaged items of contents.1
Loss of Rental Income
Up to 25 weeks
Or uo to $50,000

This is an optional cover. If purchased, and an insured event causes damage to your property, causing it to be uninhabitable, this coverage may reimburse you for the rental income you lose during the period your property can’t be tenanted (up to a maximum period).1
Rent Default & Theft
Due to a current embargo, we are unable to offer this benefit until further notice.

This is an optional cover. If purchased, this covers your financial loss in circumstances where a tenant either stops paying rent, vacates the property before the expiration of the rental agreement, or is otherwise evicted and there has been a loss of rent as a result.1,
Contents
Up to $50,000
$100 excess per event
 
Can provide cover for your contents such as carpets, curtains, light fittings and other furnishings for fire, burglary, storm and water damage in addition to deliberate, accidental and malicious damage.1

Accidental Damanage is only applicable to carpets.
Damage by Pets
Up to $2,500 per claim

Can provide cover for your building and contents for accidental damage or loss caused by a tenant’s pet/s.1
Flood Cover
Flood cover can provide protection in the event where normally dry land is covered by water that has escaped or been released from the normal confines of any lake, river, creek or other natural water course or any reservoir, canal or dam.1
Illegal Drug Protection
Up to $20,000 per event

Can cover clean-up costs if buildings or contents suffer chemical contamination as a result of the manufacturing, storage or distribution of any controlled drug.1

For flexibility in your landlord cover, we also offer Rental Protection Plus Landlord Insurance, which provides you with flexibility to choose the cover you need and also include building insurance. Simply apply online or call us on 1800 105 900 for more information.

 

What does Rental Protection Plus Landlord Insurance cover?

Storm
If your contents are damaged by a severe storm, Landlord Insurance may cover some of the cost to repair the damage, subject to exclusions, such as shade cloths, swimming pool covers and other similar items of property.1
Public Liability
Up to $20M per event
Landlord chooses the Liability limit

This section of the policy protects you against claims pursued by your tenants or third parties where it is alleged that your negligence as a landlord has caused that other party personal injury or damage to property.1
Malicious Damage by Tenant
Up to $50,000
$100 excess per event
Landlord chooses the Contents limit

If your tenants maliciously and deliberately vandalise your property or steal items belonging to you but kept at the premises, the cost to repair or replace these items may be covered.1
Fire
If there is a fire at your rental property, cover is available to contribute to repairing the resulting damage to your contents or to repair or replace damaged items of contents.1
Loss of Rental Income
Up to 25 weeks
Or uo to $50,000
Landlord chooses the Loss of rental limit

This is an optional cover. If purchased, and an insured event causes damage to your property, causing it to be uninhabitable, this coverage may reimburse you for the rental income you lose during the period your property can’t be tenanted (up to a maximum period).1
Rent Default & Theft
Due to a current embargo, we are unable to offer this benefit until further notice.

This is an optional cover. If purchased, this covers your financial loss in circumstances where a tenant either stops paying rent, vacates the property before the expiration of the rental agreement, or is otherwise evicted and there has been a loss of rent as a result.1
Contents
Up to $50,000
$100 excess per event
Landlord chooses the Contents limit
 
Can provide cover for your contents such as carpets, curtains, light fittings and other furnishings for fire, burglary, storm and water damage in addition to deliberate, accidental and malicious damage.1

Accidental Damanage is only applicable to carpets.
Damage by Pets
Up to $2,500 per claim

Can provide cover for your building and contents for accidental damage or loss caused by a tenant’s pet/s.1
Flood Cover
Flood cover can provide protection in the event where normally dry land is covered by water that has escaped or been released from the normal confines of any lake, river, creek or other natural water course or any reservoir, canal or dam.1
Illegal Drug Protection
Up to $20,000 per event

Can cover clean-up costs if buildings or contents suffer chemical contamination as a result of the manufacturing, storage or distribution of any controlled drug.1
Building
Building Insurance protects against damage to the property’s structure. The cover extends to more than just walls and roof; it can include your garage, outbuildings, perimeter walls and pools. It is important to insure your buildings for the full cost of reconstruction otherwise any claim payment may be reduced. Be aware that the full cost of reconstruction is the cost of rebuilding your home, not the market value. You should also always notify your insurance provider when the property is being tenanted.1

Rental Protection Plus Landlord Insurance provides you with flexibility to choose the cover you need and also include building insurance. Simply apply online or call us on 1800 105 900 for more information.

 

Rental Protection Plus Advantage Landlord Insurance Premiums

ACT
$229.63 inclusive of statutory charges
NSW
$254.87 inclusive of statutory charges
NT
$224.07 inclusive of statutory charges
SA
$204.59 inclusive of statutory charges
TAS
$185.91 inclusive of statutory charges
VIC
$173.99 inclusive of statutory charges
WA
$199.20 inclusive of statutory charges
QLD
$204.67 inclusive of statutory charges

Claims process

When it comes to making claims, providing you have all the relevant documentation at lodgement, the process can be done simply over the phone or via email.
 
To lodge a Landlord Insurance claim, please call us on 1800 105 900 or complete the form and return it to newclaims@cgu.com.au.

FAQs

Frequently Asked Questions
Here are some questions commonly asked by other Landlords.
What is the difference between Landlord Insurance and Home Insurance?
Regular home insurance covers your property against damage from events such as storm, fire and theft and usually includes a section covering your liability as an occupier. Landlord Insurance covers all the same events a standard home insurance covers, but has additional features which are relevant to landlords, such as loss of rental of income, rent default and malicious damage caused by tenants.
Should I get Landlord Insurance if I’m renting out a home?
In our opinion, if you’re renting out a property, Landlord Insurance is very important to take out. It will not only help cover some of the costs to repair the home if an insured event occurs , but can also reimburse you for loss of rental income if your property has to be vacant for a period of time while the repairs are being carried out.
Does Landlord Insurance cover tenant damages?
Some types of damage caused by tenants are covered (vandalism, for example) but there are conditions and exclusions which apply so you should speak to your broker about what is right for you.
COVID-19 FAQs
What occurs if following unemployment due to COVID-19, a tenant wants to break their lease due to financial hardship?
Coverage may be available under the rent default section based on hardship, but the normal rules of termination will apply subject to the policy terms and conditions and coverage limits.

Can rent default be claimed if the tenant is unable to pay rent due to COVID-19?
Yes, this is claimable under the rent default section of the policy. Please refer to the Landlord Insurance PDS.

Can a shortfall be claimed if you and your tenant mutually agree to a reduction in the weekly rental payments?
No, the difference in weekly rent is not claimable as this is a mutual agreement between you and your tenant.

Can rent default be claimed if you and your tenant mutually agree upon a suspension of their rental payments?
No, as this is a mutual agreement between you and your tenant.

Are there any restrictions in place should a landlord wish to take out a new Landlord Insurance policy that might cover a COVID-19 related event?
From 5pm AET, Friday, 3 April 2020, CGU no longer offers ‘Rent default and theft by a tenant]’ cover on new policies. The cover will remain on all existing policies.

CGU is committed to helping customers through this difficult period, so we will continue to offer cover for Contents, Loss of Rent and Liability on new Landlord Insurance policies.

Insurance is intended to protect customers from unforeseen events.  During this difficult economic period, it is likely that some tenants will struggle to meet their rental payments and that cover for ‘Rent default and theft by a tenant’ is not unforeseeable and therefore it is not appropriate to offer this cover on new Landlord Insurance policies.

This will continue until further advised.

If a tenant were to die inside a leased property from COVID-19, will Landlord Insurance cover a forensic clean and property fumigation?
No, however clean-up costs up to the bond amount are permitted as per your lease agreement for reletting expenses.

In the case of a death of a tenant due to COVID-19, how long will rent default cover apply for if the property remains vacant?
Landlord Insurance is available to cover the loss of rental income due to the death of a tenant provided that tenant was the only person named on the lease.  The policy will pay up to 15 weeks rent with a six-week reletting period.  Please note that a $12,000 maximum limit applies.

It may be the case that COVID-19 may cause a decline in the demand for rental properties. If the tenant’s lease is about to come to an end and I am unable to secure another tenant due to lack of demand in the rental market, will losses be covered?
No, the policy does not respond to rental market fluctuations.

If the tenant advises the agent/landlord of a trip overseas and then abandons the property following country lockouts and falls into rental payment arrears, how will insurance respond if it is deemed a claimable event?
This is claimable under the rent default section of the policy. Please refer to the Landlord Insurance PDS.

What is the claims process should I need to make a claim?
We have a 24-hour claims hotline. Please call 1800 105 900 to lodge your claim over the phone.

In these uncertain times you may have questions that have not been addressed above. Aon and CGU are here to support you, so if you require any further assistance regarding your policy, please don’t hesitate to contact us on 1800 105 900.
Explore more FAQs
What is the typical cost of Landlord Insurance?
This will vary significantly between different states. It will depend on the address of the property and a number of other factors, such as the sum insured of the property. We recommend going through the quote process to get an indication of the price for the Rental Protection Plus Landlord Insurance. For Rental Protection Plus Advantage Landlord Insurance refer to the premiums above.

Is a landlord responsible for damaged property?
As a landlord, if there is damage to your investment home, the cost of repair sits with you. In addition to damage to the house itself, if a tenant alleged that your negligence as a landlord caused damage to their property, then it is possible that you would be held liable for these costs as well.

I rent out an apartment or villa – do I still need Landlord Insurance?
If you rent out an apartment or villa, you might have some level of cover under your Strata Insurance. You should speak to your strata insurance provider to understand which parts of the property the strata insurance covers. Depending on the coverage under your Strata Insurance, you may still need a Landlord Insurance policy to cover the fixtures and fittings, public liability, as well as risks such as rental default or loss of rent should an insurable event take place within the 4 walls of your property.

I’m renting out a furnished property, do I need extra insurance?
If you’re renting out a furnished property, you may wish to include Landlord Contents Insurance in your coverage, where you nominate the total value of your furnishings that you wish to insure.

I’ve leased my property out privately, can I still get Landlord Insurance?
You’re still eligible to take out Landlord Insurance even if you’ve rented out your property privately. However, to be eligible to be covered for rent default and loss of rental income, you need to have a written rental agreement in place.

Contact


Call 1800 105 900

Monday - Friday 8:30am - 5:00pm AET (Except public holidays) 
1Subject to full policy terms, conditions and exclusions.

2Due to a current embargo, we are unable to offer this benefit until further notice.