Landlord Insurance in South Australia: What It Covers and What It Costs
Landlord insurance covers the risks of renting a home that ordinary home insurance does not: rent lost when a tenant stops paying or the home becomes unliveable, damage a tenant causes, and legal costs. Canstar’s March 2026 figures put the average South Australian premium at $2,108 a year for a house with building cover and $358 for a unit. It is not compulsory in SA, but most landlords hold it.
Written by Adelaide property managers. Wemark Real Estate does not sell insurance or recommend an insurer.
What does landlord insurance cover?
Policies differ, so read the product disclosure statement before you buy. These are the covers most landlord policies offer, with the kind of limits we saw in current Australian policies in October 2026.
| Cover | What it means | Typical limit |
|---|---|---|
| Loss of rent, tenant default | Rent you are owed when a tenant stops paying or leaves owing rent, once you have taken the legal steps | Often up to 20 weeks |
| Loss of rent, home unliveable | Rent lost while the home cannot be lived in after an insured event such as a fire or storm | Often up to 52 weeks |
| Tenant damage | Malicious or accidental damage by the tenant or their guests | A dollar cap or a share of the sum insured |
| Theft by the tenant | Your fixtures or contents taken by the tenant or their guests | Usually capped |
| Legal and tribunal costs | Fees to recover rent or possession through the tribunal | Often a few hundred dollars |
| Landlord’s contents | Carpets, blinds, curtains and appliances you supply | The amount you choose |
| Public liability | Claims if someone is injured at the property | Commonly $20 million to $30 million |
A house usually needs building cover as well. A strata unit is normally covered by the strata policy, so a unit owner usually buys landlord cover without the building.
What landlord insurance does not cover
- Wear and tear. Gradual deterioration is the owner’s cost, not a claim.
- Damage you cannot prove. Insurers ask for the ingoing condition report and routine inspection reports with photos. Without them a claim can be cut or refused.
- Long vacancies. Some policies drop cover if the home sat empty for a set period, such as 90 days, before the loss.
- Rent owed before the policy started. Arrears that began before you took out the cover are usually excluded.
- The bond’s share. Insurers take the bond into account first, and some assume a full bond was collected even if it was not.
- Short-stay letting. A standard landlord policy is written for a residential lease, not holiday or Airbnb guests.
How much does landlord insurance cost in South Australia?
According to Canstar’s March 2026 research, the average South Australian premium was $2,108 a year for a house and $358 for a unit, against national averages of $2,640 and $432, at a $1,000 excess. House figures include building cover.
Compare the Market reports its customers were quoted an average of $2,168 a year for landlord insurance with building and contents cover, nationally, between July 2025 and June 2026.
Your premium depends on the building’s rebuild value, the rent, the suburb, the excess you choose and the claims history. Prices checked 10 October 2026. Get several quotes and compare the limits, not just the price.
Do you need landlord insurance if you have a property manager?
Yes. A good property manager lowers the risk of a bad tenancy through screening, regular inspections and acting quickly on arrears, but cannot remove it. Insurance pays when something goes wrong anyway.
The two work together. A claim succeeds on evidence, and the property manager holds it: the lease, the ingoing condition report, routine inspection reports with photos, the rent ledger, breach notices and any tribunal orders. Wemark Real Estate inspects three to four times a year with photo reports, which is what an insurer will ask to see. See how our property management works.
How does a claim work in South Australia?
- Act on the arrears. In SA a breach notice for unpaid rent can only be served once rent is at least 14 days behind, and it must give the tenant at least 7 days to pay. The rules are on sa.gov.au.
- Go to the tribunal if needed. A landlord cannot take back possession without an order from the South Australian Civil and Administrative Tribunal (SACAT).
- Claim the bond. The bond is held by Consumer and Business Services, and a disputed bond claim runs through the CBS bond process. Insurers usually apply the bond first. Our guide to rental bonds in SA explains the steps.
- Lodge the insurance claim with the lease, condition reports, inspection reports, rent ledger, notices and orders.
Is the property earning what it should?
Insurance protects the rent. The rent itself is worth checking too. A free rental appraisal tells you what the home should lease for today, and the rental yield calculator shows what that means as a return. If you manage the property yourself, our comparison of self-managing and professional management sets out the work involved.
Not sure what your property should be earning?
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Common questions
- Is landlord insurance tax deductible?
- Generally, yes. The ATO lists building, contents, public liability and loss of rent insurance as a rental expense you can claim, provided the property is rented or genuinely available for rent. See the ATO’s list of rental expenses and confirm with your accountant.
- Does landlord insurance cover an Airbnb?
- Usually not. Standard landlord policies are written for a residential lease. Short-stay letting needs a policy designed for it, and those often leave out loss of rent cover.
- What if my tenant stops paying rent?
- Act early. In SA a breach notice can be served once rent is 14 days behind, giving at least 7 days to pay. If the tenant does not pay or leave, SACAT can end the tenancy. Loss of rent cover then pays the shortfall after the bond, up to the policy limit.
- Is landlord insurance compulsory in South Australia?
- No law in SA requires it. The lease must say who insures the premises and contents, and a lender may require building cover, but landlord cover itself is your choice.