Landlord insurance matters: don't be caught without it!

As a property investor, having Landlord’s insurance is essential. As well as covering your home or apartment against natural disasters and theft, you are protecting yourself against the potential pitfalls of damage caused by tenants.



Landlord insurance is still important to have even if you own property in a Strata Complex. There are limitations to what your Strata Insurance will cover. Items like flooring, kitchens, bathrooms, light fittings etc essentially everything between the walls are not covered by Strata Insurance if there is an accident, fire, or malicious damage in individual cases.


Here is a common example of what can go wrong in a Strata Building.

Property: Bondi Beach NSW, Apartment 7

Tenant: 3 years in property, well maintained and on a fixed lease


In October, the tenant reported mould in the kitchen cupboards and damp walls. The Property Manager promptly carried out an inspection and thought it may be a leak from an upstairs apartment. The Property Manager reported the issue via email to the Strata Agent, after 2 weeks and several follow-ups the Property Manager had no response. Finally, the EC agreed to arrange a quote with a builder that was working on the site. The EC ruled that the issue was not a Strata problem as the leak was from the taps from the apartment above No.12 which was renovated 10 years prior. After many weeks the taps upstairs were fixed, ECOMOULD and Builders were called in to clean up Apartment 7 and the issue was finalised.

Damages Total:

$6,950

Mould clean-up repair:

$900

New kitchen cupboards:

$4,000

​Remove and re-install hot water system:

$250

​Repaint lounge/kitchen/ceilings etc:

$1,800

The owner had Landlord Insurance on their investment property and was only liable for $200 out-of-pocket expenses for this matter - saving them $6,750. With the average cost of landlord insurance being approximately $350 per property per year - this is a smart investment.


Insurance is an extra cost but no property is free from the risk of fire damage, break-ins or unpredictable tenants. Purchasing an insurance policy provides the peace of mind that you have a safety net if something goes wrong. Make the most of your agent’s services and ask your property manager about their recommendation for a reliable insurance policy that provides value for money.