Landlord vs. home, building and contents insurance

Understand the difference to make informed property decisions.  

house with driveway

Understanding the difference between landlord, building and contents insurance can help you make informed decisions about your property, saving you time and money.  

Why is insurance important?  

Putting insurance in place is an important consideration when purchasing your property, whether it be your first home or an investment property. Insurance may provide a safety net for you personally if something unexpected happens, such as an illness or accident. It also gives you more options to replace, repair or be compensated for your property or belongings if something does go wrong.  

Insurance is typically paid as a premium, often monthly or annually. The costs of insurance typically depend on the type of policy and level of cover. While this is an additional expense that you’ll need to include in your budget, it might be less costly in the long run if something goes wrong.  

What type of insurances should you consider?  

When you’re ready to purchase your first home or investment property, it’s important to be aware of the different types of insurance available.

It’s important to carefully read any Product Disclosure Statements (PDS) and Key Fact Sheets (KFS) before taking out a policy to ensure you know what you’re covered for and what’s not covered.   

If you have questions about what insurance you might need, your Aussie Broker can help. We can even help you to put insurance in place as part of your home buying process. 

Types of insurance  

Protecting yourself  

Right now you’re either in a position to purchase your property, or not too far away – well done! Have you thought about how you might meet your home loan repayments if your circumstances were to change?   

Mortgage protection insurance may help to provide a buffer if you find yourself unable to meet your mortgage repayments due to death, serious illness or injury, or involuntary unemployment1. There are different types of mortgage insurance available and if you need to claim you might receive either a lump sum payment or a monthly payment to an agreed amount of money or time period.  

This type of insurance policy should not be confused with Lender’s Mortgage Insurance (LMI), which is used to protect your home loan provider. 

Protecting your assets  

Home or Building insurance  

Your property is likely to be the biggest purchase you ever make. Home insurance, also known as building or property insurance, may help to cover costs in case of a natural disaster such as fires, floods or storms as well as theft or other damage to your home including permanent fixtures and outbuildings. 

Generally home loan providers will require you to have a current home or building insurance in place before they can settle your loan, as your home acts as a security for your mortgage.   

If you’re purchasing an apartment or townhouse within a strata plan, your strata fees may include building insurance cover through the Body Corporate. It’s a good idea to get a strata report to find out what insurance is in place for the strata scheme as a consideration before making your purchase.  

Your Aussie Broker can help you with building or contents insurance during your home loan application, saving you time and effort. Find out more about our insurance policies.  

Contents insurance  

If you add up all the things in your house, such as clothes; jewellery, furniture, white goods, kitchenware, artwork, computers; plus other fittings and furnishings. It would cost a lot to replace, right?

That’s why it’s a good idea to have contents insurance in place.

Contents insurance can be conveniently bundled with your home insurance premium, using an agreed type and level of cover. 

It’s important to review these regularly as your circumstances and belongings may change. Read through our contents policy.     

Landlord insurance

Landlord insurance is a type of policy that investment property owners can take out to minimise the financial risks associated with renting out their property. This type of insurance may provide cover for damage caused by tenants and their guests to the property.

A Landlord insurance policy may also cover you for costs associated with loss of rental income or legal fees in some scenarios, and protect against a tenant that does not pay rent or any loss of rent due to a tenant breaking a lease.

This policy may also cover any legal costs associated with having to remove a tenant for any number of reasons.  

Speak to an Aussie Broker 

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