Do I need landlord insurance for an investment property?

Building insurance (mandatory for any mortgaged property) covers structural damage from fire, storm, water. Contents insurance (optional for landlords - tenants buy their own) covers furniture + appliances. Landlord insurance bundles both PLUS the rental-specific risks: tenant default on rent, malicious tenant damage, accidental tenant damage, loss of rent during repairs after a covered event.

Typical premium: $400-$800/year for residential investment property. Strata buildings are often cheaper because the strata-corp building insurance covers structure + common property (you only insure the unit interior + landlord-specific risks). Standalone houses are pricier.

Common claims: tenant breaks lease + skips rent (covered up to typical 6-12 weeks rent), malicious damage to walls + carpets (covered minus excess), water damage from tenant negligence (covered), defaults on water/electricity bills tenant was supposed to pay (often covered with tenant-default add-on).

What's NOT covered: ordinary wear-and-tear (damage from normal use), rent arrears beyond the policy cap, loss caused by your own negligence as landlord (e.g. failing to maintain), war + nuclear + terrorism. Read the PDS carefully, exclusions vary by insurer.