Is landlord insurance actually worth it in 2026?

Is landlord insurance still worth it in 2026? Premiums are rising, policies seem more complex, tenancy laws are changing across the country and cost of living pressures are intense. So, we ask (and answer) the hard question – is landlord insurance all too hard?

Good question! Early in every new year, it makes sense to think about your landlord insurance and ask the same questions you ask of every line item in your budget: 

• Is it a luxury or necessity? 

• Is it good value? 

• Can I afford it? 

• Does it bring me heartache or joy? 

• Is it still worth it this year?  

Let’s dive into each one… 

Luxury or necessity? Necessity! Yes, we are biased, but do you really want to gamble your rental? Rental properties come with risks, some of which apply to all properties (weather issues, water damage, leaking roofs, legal liability) and others which only apply to rentals, like accidental or malicious damage by tenants (or their pets) or rent default. Even great tenants can face unexpected life events that impact their ability to pay rent or meet their lease obligations, and the right insurance can make a heap of difference financially. 

Good value? So, how do you define value? If it is peace of mind, then yes. If it is avoiding being thousands, sometimes tens of thousands, of dollars out of pocket when the unexpected happens, then absolutely yes. And if it is having access to strong support when you need to make a claim, then yes again. But the real value lies in your choice of insurer and the cover on offer. Not all landlord insurance is the same. Policies can differ significantly in what they cover, how claims are assessed, and the level of support provided when something goes wrong. Landlords should look beyond the price and pay attention to what is actually included: protection for loss of rent, tenant damage (both accidental and malicious), legal liability, and the conditions that apply when a claim is made. Just as importantly, consider the insurer’s experience, how clearly the policy is explained, and how responsive and practical their claims support is. When the unexpected happens, the right landlord insurance does not just pay a claim, it helps you recover with less stress and fewer surprises. 

Affordable? Yes, despite the fact that premiums have risen for a range of reasons including increased weather events and the increased costs of payouts (as rents increase). Consider this: Average rents for capital city units range from just over $500 per week in Hobart to $750 per week in Sydney, according to realesate.com.au.  Premiums for RentCover Ultra for example (which does not include building cover) range from $343 per year in Tasmania to $475 per year in NSW. So, no matter where your rental is, the cost of insurance can be less than a week’s rent.   

Heartache or joy? It might be a stretch to say being protected when the unexpected happens at your rental is joyous, but it is certainly a relief. Facing big bills for storm damage, water leaks or even an illegal meth lab is certain heartache. So is the loss of rent when your tenants cannot pay, will not pay or cannot stay because repairs are underway. Landlord insurance will not stop the unexpected, but it can stop it from becoming a financial nightmare.   

Worth it? Absolutely. While landlord insurance is not a legal requirement, going without it leaves you exposed to significant risks, from liability claims to major, unexpected repair costs and much more. That is a worry at the best of times, and a far bigger one when you do not have insurance to step in and help. 

What landlords can do 

Landlords can be proactive about achieving the best value from their landlord insurance including: 

• Get the best fit. Policies vary, so take the time to understand what cover is available and choose the option that best suits you and your property. 

• Read your policy. Note any exclusions, and any actions or obligations required of the property owner. 

• Stay abreast of regulatory changes. Tenancy reform is on the agenda across the country and changes to date include matters relating to the timing of rent increases, terminating leases, pets and more. 

• Keep your property in good order, including regular property inspections and maintenance. You do not want to jeopardise a claim by not fulfilling your obligations. 

• Communicate well with your tenant. This can be directly or through your property manager, and ensure they are aware of the obligations they have to care for the property. 

• Keep your insurer informed of any changes at the rental, or in your circumstances. Any changes can impact your cover.  

Got a question about landlord insurance and which cover is right for you? Contact the EBM RentCover team on 1800 661 662. We are here to help.  

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions. 

About the author

Sharon Fox-Slater

Managing Director, EBM RentCover

Adv Dip Fin Serv (Genl) GPIB FNIBA FAIM ANZIIF (Snr Assoc) CIP

Sharon joined EBM in 1993 and was part of the core team that helped launch one of Australia's first landlord insurance policies. She has transformed EBM RentCover from a small start-up into a national operation, protecting approximately 155,000 policyholders.

Sharon is passionate about the role insurance plays in providing certainty for people, in times of uncertainty. It is at the heart of everything she does. Sharon and her team of specialists strive to educate and empower property partners and landlords, helping them understand the true value of protecting investment properties.