Landlord Insurance

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Building and Contents Insurance for Landlords

Budget Direct’s landlord building insurance provides cover for the cost of repairing or replacing your investment property if it’s damaged or destroyed by insured events like fire, storm, break-in or impact.

It covers not only your detached building, but also loss of rental income if your property is uninhabitable due to loss or accidental damage.

If you rent out your property partly or fully furnished, landlord contents insurance can cover your carpets, curtains, furniture and whitegoods against loss or accidental damage.

You also have the option of getting protection for your investment property against unpaid rent due to your tenant absconding or defaulting; and theft or malicious damage caused by your tenants and their guests.

Please note: We do not cover strata title buildings – those that share walls with other properties (e.g. units and townhouses). However, we do cover the contents in those buildings.

What’s covered

Budget Direct landlord building and/or contents insurance policies include the following benefits as standard (to see the full list of benefits, please refer to the product disclosure statement):

Landlord Building Insurance covers
Cost to repair or replace your rental property due to damage or loss caused by storm, rainwater, fire, lightning, explosion, earthquake, break-in, and impact up to your sum insured
Removal of debris and extra rebuilding costs, including professional (e.g. surveyor and architect) and building application fees up to 10% of your sum insured*
Loss of rent for the period your investment property is uninhabitable due to damage up to 10% of your sum insured, up to 12 months*†
Loss or damage to your property’s fixed floor coverings (except fitted carpets) and external window coverings (e.g. awnings and blinds) up to 5% of your sum insured*
Legal liability for someone else’s death or injury or for loss of, or damage to, someone else’s property following an accident at the insured address up to $20 million

* We would pay this amount in addition to your sum insured.
† Subject to you having a valid written rental agreement in place.

Landlord Contents Insurance covers
Cost of repairing or replacing (new for old) lost or damaged contents you provide for your tenant’s use due to storm, rainwater, fire, lightning, explosion, earthquake, break-in, and impact up to your sum insured
Loss of, or damage to, your property’s carpets (loose and fitted), light fittings and internal window coverings (e.g. curtains and blinds) up to 5% of your sum insured§
Extra rebuilding costs, including storage of your undamaged contents during the time it takes to repair your property up to 10% of your sum insured§
Replacement of locks or PIN codes if the keys to your property’s external doors and/or windows are stolen or its digital access control is compromised up to $500
Legal liability for someone else’s death or injury or for loss of, or damage to, someone else’s property following an accident at the insured address up to $20 million

‡Unless you have specified a replacement value, limits apply to the amounts we’ll pay for certain content items.
§We would pay this amount in addition to your sum insured.

Upgrade your cover

For a higher premium, you can customise your cover to insure additional landlord risks by adding one or more of the following optional benefits to your landlord building and/or contents insurance policy:

Optional cover add-ons
Tenant Default In case your tenant fails to pay their rent or leaves unexpectedly
Theft and Malicious Damage by Tenants Protects you against theft or malicious damage by your tenants and their guests^
Flood Cover Covers you for damage or loss caused by flooding rivers, creeks and other bodies of water – up to your sum insured.
Sum Insured Safeguard# We’ll increase your sum insured by up to 25% if your nominated sum insured is insufficient to repair or replace your investment property.

^ Provided you report the theft and/or malicious damage to the police.
# Applies only to building insurance.

You can add these optional benefits to your policy when you get a quote or – if you’ve already purchased a policy – by calling one of our team members on 1800 182 310 or logging into your online account.

Find out more

The information on this page is a summary only. For more details about Budget Direct landlord building and contents insurance, including the terms, conditions, limits and exclusions that apply, please read the product disclosure statement and financial services guide.

How much cover do I need?

As a landlord it’s up to you to determine the amount it would cost to replace your investment property and its fixtures and fittings if they were totally destroyed, for example, by fire – the ‘sum insured’.

This is the maximum amount we’ll pay, so it’s important the sums insured you nominate are sufficient to replace your property and contents at today’s prices.

We have compiled a list of Home & Contents Insurance Calculators which you can use to estimate the costs involved in repairing or replacing your home or possessions in case something happens. These may help you to work out the sum insured value you’ll need to nominate for your insurance policy.

Get a quote

Getting a Budget Direct landlord building and/or contents insurance quote is quick and easy.

Get a quick quote online and save 15% (single policy) or 30% (combined policies); or call us on 1800 288 149.

Get a Quote

How to make a Landlord Insurance claim

If your investment property or contents you own are lost or damaged and you need to claim, we’re here to help.

Follow these steps:

  1. Take all reasonable steps to prevent or minimise further loss, damage or liability.
  2. Report any theft (or attempted theft), malicious damage or vehicle impact to the police as soon as possible.
  3. Lodge a claim, providing us with the full details of the incident and the relevant supporting documents.

Excesses

If you make a claim, you’ll be required to pay a Basic excess and any additional excesses that apply (see table below).

Excess Amount
Basic $100 to $5,000 – it’s your choice
Fixed
Based on perceived risk; may not apply to your policy
Subject to underwriting criteria
Tenant Default~ 4 weeks’ rent
Theft and Malicious Damage by Tenants~ 4 weeks’ rent
Earthquake Same as Basic excess

~ This excess would apply only if you have this optional cover.

If you claim for loss or damage to your home building and home contents, you’ll be required to pay only the higher of the two Basic excesses you selected.

Your certificate of insurance shows you the amount and types of excess that apply to your cover.

Repair and replacement

Upon acceptance of your claim, we’ll appoint a team member to take care of the repairs to your home and/or replacement of your contents. We will:

  1. assess the nature and extent of your damage or loss
  2. make your property safe (e.g. remove a fallen tree)
  3. source all repair and replacement quotes from our preferred builders and/or retailers
  4. appoint a building contractor to repair your property
  5. obtain all the materials needed for the repairs
  6. keep you informed of progress
  7. ensure repairs comply with the latest building codes
  8. arrange for the delivery of your replacement contents.

Frequently asked questions

How soon after buying my investment property must I insure it?

It’s recommended you insure your property when you exchange signed copies of the purchase contract with the seller; your cover takes effect immediately.

If your property is new, your cover will start as soon as you’ve received a certificate of occupancy from the building surveyor. In the meantime, you can get an online quote or call us on 1800 288 149 to arrange cover

See all home and contents insurance FAQs

*If you cancel the policy within 21 days without making a claim, we’ll give you a full refund.
** Conditions apply. See the Product Disclosure Statement for full details.

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