Landlord Insurance
Owning and renting out a property in Australia is not without its fair share of risks. Make sure you protect your rental or investment property against accidental damage, fire, theft, vandalism and more and gain peace of mind that your property and its contents are well protected with landlord insurance. Whatever your property type and level of cover required, AIB can help you find a policy that meets your needs and gives you peace of mind that your investment property is well protected.
What is Landlord Insurance?
Like home insurance, landlord insurance can cover your rental property and its contents against risks like storms, floods and fire. It can also cover the damage that tenants can cause to your contents – and even loss of rental income.
Unlike some landlord policies, landlord insurance through AIB can cover holiday rentals, investment properties and long-term rentals.
Who Should Consider It?
Without landlord insurance, you could lose your valuable investment if it’s damaged or destroyed. You could also lose income from rent if you’re unable to rent it out during repairs, or if your tenants get evicted or break their lease.
What It Can Cover
Landlord insurance through AIB can provide you with extensive protection if your investment property suffers loss or damage. And, unlike some other policies, our landlord insurance may automatically include some additional benefits – and is flexible enough to cater for both short term and long term rentals.
You can choose:
- Building Insurance Cover
- Home and Contents Insurance Cover
- Combined cover
The exact cover you can receive depends on the policy that you take out. But to give you an idea, here are some of the benefits an AIB landlord insurance policy may include:
Automatic cover for flood and fire or explosion:
Automatic inflation adjustment if you need to make a buildings or contents claim.
Liability cover of up to $20 million for injury or loss of life to a third party, or loss of a third party’s property on a building you own.
Cover for loss or damage caused by tenants or their visitors(exclusions apply).
Automatic cover up to $10,000 for damage to landlord’s contents – and the option to increase cover for greater amounts.
Cover for loss or damage caused by electric motor burnout for appliances up to 15 years of age.
Catastrophe cover of up to an additional 15% of the building sum insured, for declared natural disasters.
Tax audit cover (cover options of $2,000 or $5,000).
Optional cover for loss of rent or an absconding tenant.
Up to an additional 15% of the building’s total sum insured, to cover demolition and removal of debris, and architects and engineering fees.
Coverage for malicious damage caused by tenants.
Automatically covered by AIB policies.
Investment Property Insurance Case Study
Janet and Ross bought an investment property in Sydney’s inner west. They relied on the rent from the property to help cover their mortgage repayments. One year, they rented the property to some tenants who caused extensive damage and then left owing 12 weeks’ rent. Because the property needed repairs, Janet and Ross were unable to rent it out immediately.
Fortunately, the couple had taken out landlord’s insurance and included the rent default option*. They successfully claimed on their insurance to cover their repair costs – and just as importantly, their missing rent. This allowed them to make their mortgage repayments and repair the property quickly so they could get new tenants in.
How We Can Help
What Usually Isn't Covered
Each policy is different, but generally you won’t be covered:
- Damage from tenant carelessness or neglect.
- Rust, corrosion, gradual deterioration or wear and tear.
- Your home if it is unoccupied for 90 continuous days.
Other exclusions may apply.
