Home and contents vs landlord insurance

Some landlords mistakenly think that standard home and contents insurance is the right choice for their investment property.


That could prove costly if they need to make a claim.


Rentals have tenants.

And that’s the fundamental difference between an investment property and a private residential property.

Sounds basic, but it’s an important difference when it comes to insurance.

You see, standard home and contents insurance is designed to protect owner-occupiers from the financial costs associated with repairing or replacing their property due to damage or loss caused by an insured event.

These insured events cover common risks that homeowners may face.

These are primary risks that could see property lost or damaged by unforeseen events such as a fire, storm, break-in, and burglary.

The insurance is also designed to protect against the financial risks associated with a third party being injured or having their property damaged while on the premises (public liability).

In general, the cover does not extend to any other financial losses, such as lost income.

It’s important to understand that home and contents policies are not usually designed to cover income-generating properties, whether it’s from a business operating from the premises or the property being used as a rental.

These activities may be considered commercial activities and are specifically excluded from home and contents insurance.

With renting the property an exclusion, should the landlord need to make a claim, they may find their claim will be rejected, leaving them to foot what could be a hefty bill.

Landlords with investment properties in strata complexes, such as apartments, villas, townhouses, or flats, often think that they don’t need to take out insurance as the complex has strata cover.

Like home and contents cover, the strata insurance will not cover tenant-related losses – nor will it cover the contents of the individual unit or liability within that unit.

To have both their unit’s contents and their income from renting the property covered, landlords need a specialist cover like RentCover Ultra.

RealRenta has all the tools that a property manager has but for less than ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Thursday, 11 August 2022

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