Protection

Home and contents vs landlord insurance

Insuring a property you live in is very different from insuring one you rent out. But many landlords don’t realise this until they try to make a claim. 

So what’s the difference between home and contents insurance and landlord insurance? And why does it matter? Understanding this distinction can help you avoid unexpected gaps in cover and protect your rental income. 

The key difference: tenants

The biggest difference between an owner‑occupied home and a rental property is tenants. Once a property is rented out, it comes with a different set of risks and not all insurance policies are designed to cover them. 

Home and contents insurance is built for people who live in their own homes. It’s designed to help cover the cost of repairing or replacing the building and contents if something goes wrong. 

What home and contents insurance typically covers

Standard home and contents insurance usually covers events like: 

• Fire, storm or water damage 

• Theft or burglary 

• Damage caused by insured events 

• Legal liability if someone is injured on the property 

What it generally doesn’t cover are financial losses linked to renting such as loss of rental income, tenant damage, or rent default. 

Why this matters for landlords

Because renting out a property is often considered a commercial activity, it’s commonly excluded under home and contents policies. That means if a tenant-related issue leads to a claim, it may be declined leaving the landlord to cover the cost themselves.  

What about strata properties?

Some landlords believe strata insurance is enough. While strata insurance usually covers the building structure and common areas, it doesn’t cover: 

• The contents inside your unit 

• Tenant-related losses 

• Loss of rent 

• Liability inside the individual property 

Why landlord insurance exists

Landlord insurance is designed specifically for rental properties. It helps protect not just the building and contents, but also the income your property generates and the risks that come with having tenants. 

For landlords looking to protect both their property and their rental income, specialist cover such as RentCover Ultra or RentCover Platinum is important. 

Other risks landlord insurance can cover

Specialist landlord insurance can cover damage or loss caused by tenants removing fixtures and fittings. While it might sound extreme, items such as window coverings, dishwashers, air‑conditioning units and even bathroom fixtures can sometimes be taken from a property. 

Landlord insurance can also extend to a range of other potential costs, including legal expenses related to tribunal disputes over loss of rent, the cost of changing locks after an eviction, and expenses linked to a tax audit connected to an investment property. 

In some cases, cover may even be available for specialist clean‑up costs, such as if illegal activity has taken place at the property.  

When landlords don’t need tenant cover

Not every rental situation is the same. In some cases, landlords may not need cover for tenant‑related risks, for example, when renting to a family member, a friend. 

For these scenarios, EBM RentCover offers a Householders Rental policy. This option is designed to protect against many of the risks associated with owning a rental property, without including cover for tenant‑specific losses. 

The policy can provide protection for events such as fire, storm and water damage, public liability, and loss of rent when the property can’t be occupied due to repairs or prevention of access. It does not cover tenant‑related losses, such as rent default or damage caused by tenants. 

Rental properties come with different risks than owner‑occupied homes, which is why home and contents insurance often isn’t enough for landlords. From tenant‑related losses to gaps in strata cover, the wrong policy can leave landlords exposed. Specialist landlord insurance is designed to protect both the property and the income it generates, with options available to suit different letting arrangements. Got a question about landlord insurance? Contact the EBM RentCover team on 1800 661 662.  

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.