Home insurance and landlord insurance – what’s the difference?

28 Jun 2024

If you own and live in your property, you may want to take out home insurance
For a property you rent out, you might want to consider landlord insurance
Take time to understand the risks you face, to decide on the cover that’s right for you

When you become a homeowner, you take on a lot of responsibility, from home loan payments to property maintenance, to ensuring it’s protected in the right way.

Whether you live in the property or rent it out will determine whether you may seek out home insurance or landlord insurance. Each covers different things, so it’s good to understand them both.

Who needs home insurance and what does it cover?

If you own a property and live in it, home insurance is important. It can cover the cost of replacing or repairing your building, your contents, or both, if something unforeseen happens.

Home insurance also includes legal liability for up to $30m.¹ This is important, because if an incident takes place on your property that leads to a person’s injury or death, you could be held liable for things like legal costs or compensation.

QBE home insurance has three options – building and contents cover, buildings only cover, or contents cover.²

Home insurance for homeowners

Buildings only cover (home insurance) insures the physical property against a range of insured events, including fire and theft, storm, rain, hail, flood. Plus damage caused by the escape of liquid, vandalism or malicious acts, damage by animals and damage from falling trees.³

It also includes temporary accommodation costs if your home is unliveable due to damage from an insured event.⁴ It covers re-keying or replacing your external door and window locks up to $2,500, if your keys have been stolen in Australia and the theft has been reported to the police.⁵

Contents insurance for homeowners

Contents insurance covers your home’s contents against a range of events, including fire and theft, storm, rain, hail, flood, damage caused by escape of liquid, vandalism and malicious acts, damage by animals and damage from falling trees.

It also includes up to $500 for buying and installing additional security measures after a burglary. And re-keying or replacing of external door and window locks up to $2,500, if your keys have been stolen in Australia and the theft has been reported to the police.

You’re also covered for food spoilage up to $500, plus carpets, curtains and internal blinds. If you’re moving within Australia, your contents are covered for up to 60 days in your current and new home.⁶

If you live in a strata building which is already covered by a communal strata policy, you may choose standalone contents insurance.

Home and contents insurance for homeowners

Buildings and contents cover combines everything listed above – for both the property you live in, and the contents within that property.

Who needs landlord insurance and what does it cover?

If you own a property you rent out, it’s worth considering landlord insurance. Like home insurance, it can cover the building and contents, but it also protects you from other risks that are specific to renting out your property.

This could include damage caused by tenants, loss of rental income, and legal costs for tenant disputes.⁷

Within landlord insurance, you can choose to cover the building only, contents only, or the building and contents together.

Buildings-only cover in landlord insurance

This has the same protection for your property as home insurance buildings cover, including up to $30m liability.⁸

You’re also covered for loss of rent, if the property is unliveable due to an insured event, and a lease is in place.⁹

It also includes up to $35,000 in chemical decontamination costs (as a result of illegal or controlled-drug manufacturing, distribution or storage by your tenants).¹⁰ Plus, up to $4,000 cover for damage caused by a tenant’s pets.¹¹

Contents-only cover in landlord insurance

This cover is useful if, for example, you’re renting out a furnished strata building, and includes the same limits for chemical decontamination and damage by tenants’ pets.

Contents-only landlord insurance also includes $30m liability and covers loss of rent, which would apply if you owned a property in a strata building.¹²

Buildings and contents landlord insurance

This insurance combines the benefits included in the buildings-only and contents-only policies, ensuring your investment property and its contents are fully covered.

Family walking out of the front door of their home

As a tenant, do I need home insurance?

If you’re a tenant in a rental property, you may want to protect your possessions with standalone contents insurance. Your landlord is responsible for having insurance coverage for the building and its permanent fixtures and fittings.

Is it compulsory to have landlord insurance?

While landlord insurance is not compulsory, mortgage lenders may require you to have it as a condition of your mortgage.¹³

Do you need landlord and home insurance if you live in the same building you’re renting out?

If you’re a live-in owner and have tenants living with you, you may need separate policies. Speak to your insurer to find out more.

Insurance for Airbnbs, granny flats and room rentals

QBE doesn’t currently cover Airbnbs, granny flats and room rentals. To learn more about coverage for Airbnbs, granny flats and rooms and where you can get coverage, you can find an insurer.

Get a quote

Learn about QBE home insurance and landlord insurance

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This advice is general in nature and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. To decide if QBE’s products are right for you, please ensure you obtain and consider the Policy Wording or Product Disclosure Statements and Target Market Determinations, available online at QBE.com/au. Insurance issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545).