Landlord insurance is a specialised product designed for investment properties — it covers risks that a standard home and contents policy does not, particularly those that arise specifically from having a tenant. The two products are not interchangeable, and using standard home insurance on a rental property will typically leave you unprotected for the claims that matter most.
The exact coverage, exclusions and limits vary significantly between insurers and policies. What follows is a general overview of what landlord insurance typically covers and where the common gaps are — but reading your actual policy documents (and talking to your insurer or broker) is the only way to know what you specifically have.
What landlord insurance typically covers
Building damage
Damage to the structure of the property from insured events such as fire, storm, flood, lightning and certain kinds of accidental damage. This is similar to standard building insurance but often includes additional protection for damage caused by tenants.
Tenant damage
Malicious or deliberate damage caused by a tenant — which is explicitly excluded from most standard home insurance policies. This is one of the core reasons landlord insurance exists. Policies vary widely in how much they will pay and what evidence they require.
Loss of rental income
If the property becomes uninhabitable following an insured event (fire, flood, significant damage), most landlord policies will cover the rental income lost during the repair period. Some policies also cover rent default — a tenant who stops paying and cannot be removed quickly.
Liability
If a tenant or visitor is injured at the property and holds you liable as the owner, public liability cover protects you against the cost of that claim. This is often included as a standard component of landlord insurance.
Legal expenses
Some policies cover costs associated with evicting a tenant or recovering unpaid rent through the tenancy tribunal. Limits and conditions vary considerably.
Common exclusions and gaps
Fair wear and tear
No landlord insurance policy covers normal wear and tear. Carpet that is worn down over several years of normal use, paint that has faded, or fixtures that have simply aged — these are the landlord's responsibility, not the insurer's. The distinction between wear and tear and tenant damage is often contested.
Maintenance-related damage
Damage caused by a failure to maintain the property — a leaking roof left unrepaired, a hot water system that was past its service life — is generally not covered. Insurers expect landlords to maintain their properties.
Unapproved tenants or uses
If the property is being used in a way not disclosed on the policy — run as a short-term rental without the insurer's knowledge, or occupied by someone not named on the lease — a claim may be declined entirely.
Flood vs stormwater
Some policies distinguish between damage caused by rising floodwater and damage caused by stormwater runoff — with different coverage for each. This is a common source of claim disputes after significant weather events.
Rent default waiting periods
If rent default coverage is included, it typically only activates after a defined period of non-payment and may require you to have followed a specific process (notice, tribunal application) before a claim is lodged.
Short-term rentals require separate cover
Properties listed on Airbnb, Stayz and similar platforms are typically not covered by standard landlord insurance, which is designed for long-term residential tenancies. Several insurers now offer short-term rental specific policies, or platforms themselves offer some host protection — but these products differ substantially and should be reviewed carefully if you operate short-term rentals.
Getting the most from your policy
- Read the Product Disclosure Statement (PDS), not just the marketing summary — exclusions are in the detail.
- Tell your insurer how the property is used. Non-disclosure is the most common reason claims are declined.
- Keep your insurance current — an expired or lapsed policy during a tenancy leaves you fully exposed.
- Document everything. Claims require evidence, and the stronger your records, the smoother the claim process.
- Review coverage annually — your property changes, policies change, and the coverage that was right when you bought may not still be right.
How Akweno solves this
Akweno stores your insurance policy documents against each property in the Document Vault — so renewal dates are visible, policies are attached to the right property, and if you need to make a claim, your lease, condition reports and maintenance history are all in one place ready to support it.