What is the average cost of landlord insurance?
To give you an idea of the potential cost of landlord insurance, Canstar Research has calculated the average annual insurance premiums for both houses and units across Australia for policies on our database.
Average annual Australian landlord insurance premiums ($1,000 excess)
State or | Houses | Units |
|---|---|---|
NSW | $2,532 | $445 |
VIC | $2,248 | $363 |
QLD | $2,529 | $396 |
North | $4,482 | $679 |
WA | $2,181 | $395 |
SA | $2,108 | $358 |
TAS | $1,998 | $395 |
NT | $4,157 | $520 |
National | $2,640 | $432 |
Source: www.canstar.com.au - 17/03/2026. Based on landlord building and contents insurance products on Canstar's database. Premiums based on quotes obtained from Canstar’s Landlord Insurance Star Ratings & Awards (March 2026).
What determines the cost of landlord insurance?
Factors that increase the risk of damage or destruction to your investment property and its contents—and therefore increase the likelihood of a payout—will typically increase the cost of your landlord insurance.
Here are some of the variables that insurers tend to look at when determining the cost of your policy:
- Whether you’re covering your property, its contents (i.e., carpets, air conditioners, dishwashers) or both
- How much you choose to cover your property and/or its contents for (sum insured or total replacement cover)
- Characteristics of your property (e.g., the materials used to build it, the age and condition of its roof etc.)
- Where your property is located (for example, if your property resides in an area that’s prone to natural disasters or has a high crime rate)
- If you decide to add any optional types of cover, such as accidental damage, loss of rent due to a tenant defaulting or breaking lease or damage caused by a tenant’s pet
- The security features the property has—for example, a home alarm system
- The price you charge for rent—if your policy covers loss of rent in certain situations
- The number of properties you’re insuring
- The excess amount you choose
- Your claims history
Why is landlord insurance so expensive in Australia?
Landlord insurance costs, as well as home insurance costs more broadly, continue to rise due to inflationary pressures. The impact of extreme weather events also plays a part, with these accounting for $1.8 billion in insured costs last year, per Insurance Council of Australia (ICA) data.
Landlord insurance is generally cheaper than regular home insurance though, with an annual national average of $2,640 for houses compared to $2,795 for home and contents insurance.
How to save on your landlord insurance premiums
- Consider landlord insurance deals and discounts, such as buying your policy online or as a combined building and contents policy
- Consider raising your excess–a higher excess generally means lower premiums, but the trade-off is a higher upfront payment if you need to make a claim
- Consider installing safety and security features such as home alarm systems and security screens—some insurers will lower premiums if you have these
- Pay your insurance premiums annually rather than monthly
- Shop around and compare your landlord insurance options
You may also be able to claim your landlord insurance premiums as tax deductions in certain circumstances. It may be worth consulting a qualified tax professional to see if these deductions apply in your situation.
Is landlord insurance compulsory?
Although there’s no legal requirement to have landlord insurance in Australia, it’s likely that mortgage lenders will require you to have it as one of the conditions of your investment home loan.
