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How much landlord insurance cover do I need?

When you’re a landlord, insurance is more than just another piece of paperwork. It’s important protection for the investment you’ve worked hard for and the future security that means for you and your family.

Many Australians undervalue their assets when it comes to insurance, so it pays to invest a little time into working it out accurately. Key things to remember are insuring for the cost to repair or replace at today’s prices, and updating the amount to reflect any improvements such as renovations.

How much should I insure the building for?

If your investment property is a strata unit or townhouse, building insurance may be taken care of by the strata or body corporate. However, if it’s a house, think about what it would cost to rebuild it today using the same materials and the same style of fittings and fixtures. The amount your building is insured for is known as your building sum insured.

  • The cost to rebuild depends on things like size, design, features, materials, and ground slope
  • It includes fixtures, fittings and structural improvements such as permanently fixed items like a dishwasher
  • It also includes any permanently fixed additional features such as timber floors, verandahs, carports and pools
  • But it shouldn’t include the land value.

To help you estimate the replacement value of your investment home you can check what's covered and use the Building value calculator.

How much should I insure my contents for?

When determining how much to insure your contents for, add up the cost to replace them today and not what you originally paid for them. The amount you insure for is known as your contents sum insured.

 

Furnished house Furnished strata unit Unfurnished strata unit
  • The amount should include the cost of furnishings
  • An easy way is to go room by room, and make a list of all the items and their replacement costs.

As well as the furnishings, the amount should include the cost of the following if they’re not covered by your body corporate building policy:

  • Fixtures eg dishwashers installed in a cabinet, wall-mounted air conditioners, ovens
  • Fittings e.g. light fittings
  • Structural improvements e.g. renovated kitchen.

In this case, just include an amount to cover the following if they’re not covered by your body corporate building policy:

  • Fixtures eg dishwashers installed in a cabinet, wall-mounted air conditioners, ovens
  • Fittings e.g. light fittings
  • Structural improvements e.g. renovated kitchen.

To help you estimate the replacement value of your contents, you can use the Contents value calculator

Keep your sum insured up to date

You can change your sum insured at any time to ensure you remain adequately covered. We recommend you review your cover regularly, to take into account things like:

  • Upgrades or renovations
  • Changes to the costs of labour and materials to repair or rebuild
  • Changes to building codes and regulations
  • Increases in the replacement value of any furnishings, fixtures, fittings.

You’ve got a safety net just in case

Your Building and Contents cover includes extra protection, in addition to your sum insured, just in case there are unexpected costs to rebuild, repair or replace your building and contents. For example, construction costs often increase after a widespread storm, flood or bushfire because the demand for labour and building materials is higher.


Read more

What is covered by my landlord insurance policy?

Insurance is about protecting the investment you've worked hard for. You want to be sure you can get it back on track if the unexpected happens.

 

Should a landlord get building or contents insurance?

Choosing cover for your investment property is easy. What kind of property do you own?

 

Things you should know

The information contained in this article is general information only and is not specific to any product.  

It does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs to these factors before acting on it.

Terms, conditions and exclusions apply to any insurance product. Please read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding.

Landlord Insurance is issued by Allianz Australia General Insurance Limited ABN 99 003 719 319, which is a corporate authorised representative of Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz Insurance). Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 arranges the insurance under a distribution arrangement with Allianz Insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Read the Product Disclosure Statement to see if this insurance is right for you.

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