Landlord Insurance WA: Cover, Gaps and Claims Guide

Landlord insurance in WA is a policy designed to protect risks associated with owning a rental property. Depending on the policy, it may combine building or contents cover with tenant-related damage, loss of rent and legal liability. The policy name alone does not establish what is insured.

Consumer Protection notes that some landlord protection policies cover deliberate tenant damage but exclude accidental damage. That difference can matter more than a small premium saving. Owners should compare the Product Disclosure Statement, limits, excesses, waiting periods and claims evidence against the actual property and tenancy. This guide provides a practical comparison and annual-review framework without assuming that every insurer offers the same protection.

What can landlord insurance cover?

Landlord policies vary, but cover may be divided into several distinct risk groups:

• Building: damage to the structure and fixed items from insured events
• Landlord contents: items supplied for tenant use, such as window coverings or furniture
• Tenant-related damage: deliberate, malicious or accidental damage, depending on the wording
• Loss of rent: defined circumstances that prevent rent being collected
• Legal liability: injury to another person or damage to their property
• Legal expenses: specified costs connected with an insured tenancy event

Do not infer cover from a checklist on a comparison page. Read the policy’s definitions, insured events, exclusions and benefit limits. “Loss of rent” may apply only after an insured event or during a defined tenant default, and each trigger can have different limits and evidence requirements.

The Perth landlord guide explains how insurance fits with tenant selection, rent setting, maintenance and compliance.

Is landlord insurance the same as building insurance?

No. Building insurance primarily protects the home and fixed structures against insured physical events. Landlord protection may address tenant-related risks and rental income, while landlord contents cover may protect items the owner supplies.

ASIC’s Moneysmart home insurance guidance says building cover generally relates to the house, fixtures and other structures such as a garage or inground pool. It also recommends checking the rebuild amount, insured events, exclusions, excess, legal liability and cover limits.

For a strata property, the strata company may insure the building. The lot owner should confirm the strata policy, excess arrangements and gaps rather than paying twice for the same structure or leaving internal fixtures and landlord contents uninsured.

A lender, strata company or other contract may impose insurance requirements. Check those documents separately from the cover an owner chooses for rental risk.

Which exclusions deserve close attention?

Exclusions define where a policy will not respond. Read them alongside the inclusions, not after a claim.

Common areas to investigate include:

Also check sub-limits. A policy may list an event as covered but cap the payment below the likely loss.

Consumer Protection’s property manager guidance recommends discussing insurance types and amounts, including public liability and landlord protection, and checking exactly what each policy covers.

How much building cover should a landlord choose?

Building cover should reflect the cost to rebuild, not the property’s sale price or land value. Rebuilding may include demolition, debris removal, professional fees, compliance work and cost escalation after a widespread event.

Moneysmart recommends using a detailed rebuilding calculator and reviewing the sum insured each year. It warns that a policy can become underinsured when costs rise or the property changes.

Review the sum insured after:

• renovations or extensions
• major appliance or fixture upgrades
• increases in local construction costs
• changes to outbuildings, pools or landscaping
• new strata arrangements
• a natural-hazard review

Keep records of improvements and tell the insurer about changes that could affect the risk. An insurer can only price and cover the property based on accurate information.

What records support a landlord insurance claim?

A strong claim file shows the condition before the event, what happened, how the owner responded and the value of the loss. Keep:

• the signed tenancy agreement and variations
• the entry property condition report with dated images
• routine inspection reports
• tenant and property manager communications
• rent ledger and arrears notices where relevant
• maintenance requests, invoices and contractor reports
• police or emergency reports where required
• photographs taken promptly after the event
• an itemised list of damaged landlord contents
• evidence of mitigation, such as urgent drying or temporary security

Notify the insurer as soon as practical and follow its instructions before disposing of damaged property or authorising non-urgent work. Take reasonable steps to prevent further damage without putting anyone at risk.

A consistent routine inspection program supports maintenance decisions and gives the owner a condition history, but it does not guarantee that an insurer will accept a claim.

How do property management and insurance work together?

Property management reduces avoidable risk through screening, clear agreements, lawful inspections, rent monitoring and maintenance. Insurance transfers defined financial risks that remain. One cannot replace the other.

Owners should give the property manager the current policy schedule, claims contact details and any conditions relevant to inspections, security, vacancies or repairs. The written management authority should clarify who may notify the insurer, arrange urgent work and approve expenditure.

A property manager can provide records and coordinate access, but the insurer decides cover. The owner remains responsible for choosing the policy and making accurate disclosures.

How should you compare landlord insurance policies?

Compare the same scenario across every quote. Price is meaningful only when the benefits and restrictions match.

Use this seven-part comparison:

1. Property covered: building, landlord contents, fixtures and external structures
2. Tenant events: accidental, deliberate and malicious damage definitions
3. Rental income: triggers, waiting periods, duration and dollar limits
4. Liability: insured circumstances and total limit
5. Excess: standard and event-specific excesses, including whether several apply
6. Exclusions: wear, maintenance, vacancy, unapproved occupancy and other gaps
7. Claims: notification period, evidence, repair approval and dispute process

Download and save the PDS and policy schedule that applied when cover began or renewed. Moneysmart notes that insurers must provide a Key Fact Sheet for home policies, which can support comparison, but the PDS contains the detail.

When should landlord insurance be reviewed?

Review cover at least annually and whenever the property, occupancy or ownership changes. Moneysmart recommends checking whether the sum insured, excess, key risks, exclusions and competing value still suit the owner at renewal.

Trigger an extra review when:

• a new tenancy type starts
• the home becomes vacant for an extended period
• renovation work begins
• a pet is approved
• furnished items change
• the property enters or leaves a strata scheme
• ownership moves to a different entity
• a claim reveals an unexpected gap

Ask the insurer or licensed adviser how the change affects cover and record the answer in writing.

How does asset-focused management support risk control?

Insurance responds after defined losses. Asset-focused management also works before loss by identifying maintenance, keeping evidence and making timely decisions.

Boutique Realty Perth’s property management service connects tenant selection, routine inspections, maintenance, rent evidence and annual asset reviews. Owners still select their own insurer, but better records and earlier action create a clearer risk picture.

Landlord Insurance FAQs

Is landlord insurance compulsory in WA?

A standalone landlord policy is not automatically required by tenancy law, but a lender, strata arrangement or other contract may require particular insurance. Owners should verify their obligations and decide what remaining rental risks they are prepared to retain.

Does landlord insurance cover unpaid rent?

Some policies cover defined loss-of-rent events, but the trigger, waiting period, duration, limit and evidence vary. Read the PDS and do not assume ordinary arrears are covered.

Does landlord insurance cover tenant damage?

It may cover deliberate, malicious or accidental damage, but these categories are not interchangeable. Consumer Protection specifically warns that some landlord policies cover deliberate damage but not accidental damage.

Can an insurer reject a claim because of poor maintenance?

Policy exclusions and the cause of loss determine the response. Delayed maintenance can affect a claim where deterioration or failure to prevent further damage contributed, so keep reports and act promptly on repairs.

Who should lodge a landlord insurance claim?

The policyholder is responsible for the claim, although an authorised property manager may help gather evidence or communicate with the insurer. Confirm authority, notification deadlines and repair approval before action.

Review the Whole Investment, Not Just the Premium

The right policy supports a wider system of maintenance, tenancy records and asset decisions. Request a rental appraisal and property management review to assess the Perth property’s current position, then compare insurance with a licensed adviser or insurer.