Protection

Insuring high-value rental properties

EBM RentCover now covers properties with higher rental values, so if your investment sits at the premium end, here is what you need to know about insuring it properly.

More Australian properties than ever are now part of the million-dollar club. Around one in three property markets across the country now have a median value of $1 million or more. While many of these homes are owner-occupied, a growing number sit within the rental pool. At the same time, Sydney remains one of the world’s standout rental markets. Knight Frank data shows prime rents have surged by more than 13–17 per cent year-on-year, placing the city among the fastest-growing luxury rental markets globally.

What is a high-value rental property?

High-value rental properties are typically distinguished by their premium build, design, and features. This may include architecturally designed homes, heritage properties, or homes with high-end materials, bespoke finishes, or unique characteristics. These properties often command higher rental income upwards of $1,500 per week and may also include valuable or custom contents.

High rents

Weekly rents for prestige properties and for rentals in sought-after city suburbs and holiday hotspots can stretch into the thousands.

Australia’s premium rental market continues to reach new heights. Suburbs like Vaucluse in NSW now ask for some of the nation’s highest rents, with median house rents sitting at around $3,000–$3,300 per week.

But it is not only exclusive addresses commanding high rents. Data shows there are now more than 300 postcodes across Australia where median weekly rents exceed $1,000. Some of the highest rents are also found in regional and resource-driven locations (e.g. mining), where limited supply and strong demand continue to push prices higher.

Most landlord insurance providers place a cap on loss of rent cover. At EBM RentCover, our standard cover for long-term rentals extends to weekly rents of up to $1,500. For higher-value properties, we can work with clients to provide cover for rental income of up to $4,000 per week.

Insuring the building

High-value properties do not always mean high building costs (the land value and not the building value may make the property high-value). But where they do, the cost to rebuild can be significant. Homes with premium design, bespoke finishes, or heritage features often require specialised materials and workmanship, increasing the cost of rebuilding.

When taking out landlord insurance, it is important that the sum insured reflects the full cost to rebuild the property to the same standard.

For higher-value buildings, insurers may require additional underwriting to assess the risk and determine appropriate cover. At EBM RentCover, we can insure building sums up to $3.5 million.

Insuring contents

High-value properties may also contain high-value contents. This is particularly the case when a prestige property is rented fully-furnished.

EBM RentCover offers up to $70,000 for damage or loss in our standard RentCover Ultra and RentCover Platinum policies. If the value of the contents in the rental property exceeds $70,000, our underwriting team may be able to help with more cover up to $500,000.

Conclusion

High-value rental properties are becoming increasingly common across Australia, driven by rising property prices and strong demand at the premium end of the market. As a result, insuring them requires careful consideration. From accurately reflecting rebuild costs to ensuring loss of rent cover aligns with higher weekly rents, standard policies may not always be sufficient.

If you have questions about insuring a high-value rental property, feel free to get in touch with a member of our Expert Care team – 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.