Do I Need Landlord's Insurance for my Investment Property?


Landlord Insurance protects you against possible financial loss related to owning an investment property and the good news is, because it is an investment expense, your policy premium is tax deductible.


What does Landlord Insurance cover?


You can choose to cover your building only, your contents only, or combine both under one policy.

  • Building Insurance covers the financial cost of repairing damage to the physical structure of a property in the event of damage or theft. This includes the roof, floors and walls, as well as any fitted or permanent fixtures including any improvements or renovations.

  • Contents Insurance covers your (the Landlord’s) items in the home that aren't fixed or installed, with the exception of carpets and curtains which are also considered contents items.


You can add the following optional cover on to your policy regardless of the type of Landlord Insurance you choose:

  • Theft, burglary or malicious damage by tenants or their guests.

  • Loss of rent due to tenant default.

  • Any legal expenses required to evict a tenant.


For a full list of building and contents items and any optional covers, refer to CGU’s product disclosure statement.


If your investment property is strata-managed, it’s likely that you will already have cover for building insurance, confirm with your strata to determine what is covered under their policy and what areas you are responsible for.


Choosing the right insurance for your investment property is easy. What kind of property do you own?
  • A furnished house
    A comprehensive building and contents insurance policy will ensure you are covered for any damage to the property as well as your furniture. You can add optional extras to cover you against loss of rental income or any legal expenses you may incur.

  • An unfurnished house
    If your investment property is an unfurnished house, you may just need Building cover with the option to add extras.

  • A furnished strata unit
    If your rental property is part of a strata, group or community title plan, the building may already be covered, therefore contents cover with any optional extras may be all you need.

  • An unfurnished strata unit
    As the building may already be covered you may just need basic cover for fixtures, fittings and structural improvements and you can add optional extras to cover you against loss of rental income or any legal expenses you may incur.

  • What isn’t covered by Landlord Insurance?
    Landlord insurance does not cover standard expenses associated with owning an investment property, such as loss of rental income due to not having a tenant, general wear and tear or regular maintenance expenses. Your tenant’s contents will not be covered by Landlord insurance and neither will any contents that are not related to the letting of the property. This includes any repair work the tenant decides to take on themselves. As a landlord, it is worthwhile having a tenancy agreement in place, so both you and your tenant have a clear understanding of what is, and what is not covered.


Whether or not you need Landlord Insurance, as an investor, is up to you. You need to consider how much risk you want to expose yourself to and evaluate whether you would be able to cover the cost of unforeseen events without the help of insurance.


If you’re interested in learning more about Landlord Insurance, visit our Insurance page or give one of our Member Care Team a call on 1300 302 474 (Monday – Friday, 8am – 6pm, AEST).