Why do you need landlord insurance?

It’s not legally required, but landlord insurance can save you big-time stress and expense. Without it, you might end up paying out of pocket for tenant damages, lost rent, or even legal claims if someone’s injured on the property. And given New Zealand’s natural disaster risks, like earthquakes and floods, protecting your rental income brings peace of mind.

Ask yourself: Could you handle the financial hit if an earthquake left your property empty and needing repairs? For many landlords, rental income is crucial. Landlord insurance helps keep that income steady when unexpected events hit.

What does landlord insurance cover?

Landlord insurance varies, but here are the key areas most policies cover:

• Property repairs or rebuilding costs: Covers repairs after fires, natural disasters, or accidental damage. Some policies even include architect and engineer fees for large rebuilds.

• Loss of rental income: If your property can’t be rented out due to damage (like a fire or flood), landlord insurance often covers lost rent, sometimes for up to a year. This can be a lifesaver for paying your mortgage during repairs.

• Contents insurance for landlords: Covers items you own in the property, like appliances and fixtures. It won’t cover tenants’ belongings, so encourage them to get their own contents insurance.

• Intentional damage by tenants: If a tenant causes intentional damage, landlord insurance can often cover repairs. Just check the terms to see what counts as “intentional” vs. “accidental” damage.

• Legal liability: Protects you if someone is injured on your property due to an issue you’re responsible for. Coverage amounts vary, but some policies go as high as $20 million.

• Methamphetamine contamination: Sadly, meth contamination is a real risk for Kiwi landlords. Many policies now cover clean-up costs if a tenant contaminates the property.

Pro tip: Don’t just insure based on your purchase price—use a rebuild calculator to get an accurate estimate, especially in high-risk areas.

Something to think about: Could you afford a lawsuit if a visitor slipped on an unlit staircase? Liability cover has you protected for incidents like this.

What isn’t covered by landlord insurance?

Landlord insurance isn’t all-encompassing. Here are some common exclusions:

• Gradual damage from mould or leaks: Damage that occurs slowly, like mould growth or leaks, isn’t usually covered. Regular maintenance is key here.

• Cleaning and rubbish removal: If tenants leave behind rubbish, the insurance won’t cover clean-up costs. You’ll need to cover this through the bond or out of pocket.

• Tenants’ personal belongings: Your policy covers only items you own in the rental. Tenants should have their own insurance for personal belongings.

How much does landlord insurance cost?

The cost of landlord insurance varies based on the provider, property type, sum insured, excess chosen and the location. Properties in areas with higher earthquake or flood risk, like Wellington or Christchurch, might face higher premiums. Here are a couple of examples:

Mount Eden, Auckland: sum insured $1.2 million

Central Christchurch: sum insured $1.3 million

Source: Quashed

Pro Tip: Check if your property is in a high-risk area. Many councils provide flood-prone area maps, which can help you assess potential risks. Curious why insurance premiums seem to be climbing? We’ve broken down some key reasons in our blog on Why House Insurance Premiums Are Increasing.

Why should landlords consider using Quashed?

Life as a landlord is busy enough — Quashed makes managing insurance easier. Here’s how Quashed stands out:

• Quickly compare top providers: Quashed brings top insurers together, so you can see policies side-by-side. Compare what’s covered, from tenant damage to loss of rent, without spending hours collecting quotes.

• All your policies in one place: Have multiple policies? Quashed lets you view and manage them all in one dashboard, so you’re always on top of what’s covered.

• Stay updated with alerts: Quashed monitors the market for you. If there’s a better deal available, you’ll get an alert, helping you save on premiums and maximise your cover.

• Customisable cover options: Renting out a furnished property? Concerned about meth contamination? Quashed lets you pick policies that match your specific needs.

• Exclusive discounts and deals: Quashed offers competitive rates and exclusive discounts, so you get quality cover at the best value.

• Transparent costs: Quashed shows premiums and excess clearly, so you know exactly what you’re paying upfront.

Ready to secure your rental income and protect your property? Start with Quashed to find the best landlord insurance for your needs!

FAQs

Should I share my landlord insurance policy with tenants?

Sharing your landlord insurance details with tenants isn’t required but can be a good practice. It helps build trust and clarifies what’s covered, especially if tenants are responsible for certain types of damages.

Is landlord insurance tax deductible?

Yes, premiums for landlord insurance are typically tax-deductible, reducing the overall tax liability on your rental income.

Can I deduct insurance claims as income?

Yes, if you receive an insurance payout related to your rental property, it may need to be reported as income for tax purposes.

How can I reduce my landlord insurance premiums?

• Compare policies carefully: Different providers offer varying rates and cover options.

• Adjust excess levels: Increasing your excess can lower premiums, though it means higher out-of-pocket costs in a claim.

• Review your cover regularly: Ensure you’re not over-insured or under-insured, adjusting your coverage as property values and risk factors change.

Market Scan quotes are direct from insurers

So you won’t pay more with Quashed

Get started for free