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How much cover?

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.

Things you should know

View the Home and Contents Insurance Key Fact Sheets.

*Receive a 10% discount on your annual premiums when you combine both your building and contents at the same address under one policy. Applied automatically at checkout.

Landlord Insurance is issued by Westpac General Insurance Limited ABN 99 003 719 319 (except workers compensation cover where applicable). Westpac Banking Corporation ABN 33 007 457 141 distributes the insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Read the Product Disclosure Statement (PDF 234KB) to see if this insurance is right for you.