Landlord insurance vs. home insurance

Insurance can help protect your financial security in the event of something going wrong. If you’re a live-in property owner or a landlord, there are different home insurance options to choose from, with different types and levels of cover to suit a variety of needs. Remember to check all the ins and outs of what is covered by different home insurance policies by reading the PDS. This helps you avoid unwanted surprises in the event you ever need to make a claim. Here’s how it works.

• Landlord insurance is designed specifically for property owners renting out a home to other people (tenants).
• There’s no legal requirement for landlords to have landlord insurance, but it can help act as a safety net in the event of a natural disaster or unexpected mishap (as long as it’s listed in the policy). 
• Landlord insurance may be able to be claimed as a deductible at tax time. To see if this applies to you, arrange a chat with a trusted tax expert.
• Home insurance is designed to help protect homeowners from loss and damage caused by an insured event, such as a flood, fire or storm.
• Homeowners can take out insurance for their building’s structure, contents, or both.

Landlord insurance is specifically designed for property owners who rent out their property to other people. Landlords are responsible for ensuring the property they rent out is in good condition and complies with relevant laws and regulations, and while insurance isn’t mandatory, it can come in handy if certain things go wrong. 

A landlord insurance policy can cover things like: 

• loss of rental income
• tenant damage or theft
• replacement locks and keys
• damage or loss from a fire, flood or storm. 

Keep in mind that this is just a summary, and you’ll need to read the relevant product disclosure statement for a full list and descriptions of what is and isn’t covered. 

Is landlord insurance tax deductible? 

According to the Australian Taxation Office (ATO), if an expense is for the purpose of producing rental income, and you have a record to prove it, you may be able to claim a deduction. Insurance (buildings, contents, public liability and loss of rent) is included as on the ATO, but always get advice from a tax expert to ensure you have the right information for your individual circumstances.  

Home insurance is all about helping to protect the home you live in. It can cover your home, contents or both, for insured events such as: 

• flood, fire and storm
• theft and malicious damage
• damage from water and oil leaks

• damage caused by impact (like a fallen tree).

Home buildings insurance is for the physical structure of a home and its permanent fixtures, such as built-in cupboards and cabinets. It can also cover sheds, carports and garages. 

Home contents insurance is for the things kept inside a home, like furniture, white goods (appliances), TVs and other things like carpets and rugs. 

You can buy your building and contents insurance policies separately, or together as one policy. Typically, homeowners who live in their property will consider these policies to protect the structure of their home, and the things they keep inside of it.