Owning & renting out
Landlord insurance: what it actually covers
Why a rental property needs its own insurance policy, the malicious-vs-accidental damage distinction that catches people out, and how loss-of-rent cover actually works.
Key points
- Renting out a property is a business activity — a standard home and contents policy usually doesn't cover it, including no loss-of-rent or legal-liability protection.
- Landlord insurance commonly covers malicious or intentional tenant damage, but commonly excludes accidental tenant damage (spills, accidental holes) — with a narrower exception for accidental glass/ceramic breakage, which is often covered.
- Wear and tear, existing defects, and damage from poor property upkeep are commonly excluded, not just accidental tenant damage.
- Loss-of-rent cover only applies to specific insured events, not ordinary vacancy, and usually starts after a waiting period rather than from day one.
- A property left vacant for an extended period without telling the insurer can lose cover — check the policy's specific vacancy terms.
Why a rental property needs its own policy
Renting out a property is considered a business activity, and a typical home and contents insurance policy usually doesn't cover it (Tasmania State Emergency Service (TasALERT), verified 20 Aug 2026). That matters beyond the building itself: standard home and contents insurance also doesn't usually include loss-of-rent cover or legal-liability cover for a rental property — both are specifically landlord-insurance features. If you've simply kept an existing home policy running after moving out and starting to rent the property, it's worth checking directly with the insurer whether that policy still applies now that the property's use has changed.
The coverage gap that surprises people: malicious vs. accidental damage
Landlord insurance commonly covers malicious or intentional damage caused by a tenant — including lost rent if that damage makes the property uninhabitable. What it commonly does not cover is accidental damage by a tenant — a spill, a hole punched in a wall by accident, or similar negligence-driven damage (Allianz Australia, verified 20 Aug 2026). This distinction is the source of a lot of frustrated claims: from the tenant's and landlord's point of view "damage is damage," but from the policy's point of view, whether it was done on purpose is often the entire question of whether it's covered. One narrower, specific exception worth knowing: accidental breakage of glass or ceramic items (windows, basins, cooktops) is commonly covered even though it's accidental — an inconsistency that's easy to miss until you actually read the policy wording. Wear and tear, existing defects, and damage traceable to the property simply not being well-maintained are also commonly excluded — landlord insurance protects against sudden, specific loss events, not the gradual decline of an under-maintained property.
Loss of rent: conditional, not automatic
Loss-of-rent cover typically applies only when the property genuinely can't be legally or safely occupied because of an insured event — fire, storm or certain tenant-related damage, for example — not for ordinary vacancy between tenants (Allianz Australia, verified 20 Aug 2026). Where it applies, insurers commonly pay weekly rent for the period reasonably required to repair or rebuild, up to a stated policy limit — one named insurer specifies up to 12 months — and payments often start only after a waiting period of a few days to several weeks, not from the first day of the loss. If ongoing rental income genuinely matters to your finances, check the specific waiting period and cap on any policy you're considering, rather than assuming "loss of rent is covered" means unconditional, first-day cover.
A property sitting vacant
Cover can be limited or excluded if a rental property is left vacant for an extended period without a written agreement with the insurer — one named insurer sets this at over 60 days (Allianz Australia, verified 20 Aug 2026). If you're between tenants for longer than expected, or holding a property vacant deliberately (see vacant land tax and short-stay levies for the separate tax consequences of that decision in Victoria), contact your insurer rather than assuming the policy keeps applying exactly as it did when the property was tenanted.
Common mistake: assuming "I have landlord insurance" means any tenant-caused damage is covered. Whether the damage was malicious or accidental is often the deciding factor, and loss-of-rent cover applies only to specific insured events — not to ordinary vacancy or a tenant who simply stops paying without causing physical damage.
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Frequently asked
Does my home and contents insurance cover a property I rent out?
Generally no. Renting out a property is considered a business activity, and a typical home and contents policy usually doesn't cover it — including no loss-of-rent or legal-liability cover for the rental. A dedicated landlord insurance policy is generally needed instead.
Does landlord insurance cover accidental damage by a tenant?
Commonly, no — this is one of the most common coverage surprises. Landlord insurance typically covers malicious or intentional tenant damage, but excludes accidental damage from negligence (spills, holes in walls). One notable, narrower exception: accidental breakage of glass or ceramic items is commonly covered even though it's accidental.
Will landlord insurance cover me if the property sits vacant?
Often not, or only with conditions. Cover can be limited or excluded if a property is left vacant for an extended period (one named insurer specifies over 60 days) without a written agreement with the insurer — check this before assuming a vacancy between tenants is automatically covered the same way an occupied property is.
How much loss-of-rent cover does landlord insurance actually provide?
It varies by insurer and policy, and only applies when the property genuinely can't be occupied because of an insured event — not ordinary vacancy between tenants. Cover is typically paid weekly, up to a stated policy limit (one named insurer states up to 12 months), often starting after a waiting period of days to several weeks.
Practical checklist
Before relying on a landlord insurance policy
- Confirm you actually hold a landlord policy, not a leftover owner-occupier home policy
- Read the policy's specific wording on malicious vs. accidental tenant damage
- Check the loss-of-rent waiting period and maximum payout period
- Check what happens to cover if the property sits vacant between tenants
- Ask directly whether legal liability (e.g. an injury on the property) is included
Questions for a professional
- Does this specific policy cover accidental tenant damage, or only malicious/intentional damage?
- What's the waiting period and maximum payout period for loss-of-rent cover?
- What happens to my cover if the property is vacant for an extended period between tenants?
Official resources
Important limitations: This is general information, not a recommendation of any specific insurer or policy, and doesn't confirm what any individual policy covers. Coverage, exclusions, waiting periods and payout limits vary by insurer and by the specific policy — the figures here are illustrated with named insurers' own published examples, not a market-wide guarantee. Read the current Product Disclosure Statement and confirm your specific position with your insurer before relying on any figure here.
Sources and methodology
- Fact Sheet 10: Landlord insurance | TasALERT — Tasmania State Emergency Service (TasALERT) (retrieved 20 Aug 2026). Reuse terms: see the publisher's site
- Does Landlord Insurance Cover Loss of Rent? | Duo Insurance — Duo Insurance (retrieved 20 Aug 2026). Reuse terms: see the publisher's site
- Landlord Insurance | Allianz Australia — Allianz Australia (retrieved 20 Aug 2026). Reuse terms: see the publisher's site
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.
Evidence record