What Happens When You Need to Make a Landlord Insurance Claim?

For landlords, insurance is one of those things you hope you never need to use. But when something goes wrong, whether it’s storm damage, a burst pipe, tenant-related damage, theft or lost rental income, knowing what to do can make the claims process much smoother.

At Rent Choice, we understand that dealing with property damage or a financial loss can be stressful. While every insurance policy is different, understanding the general claims process can help landlords know what to expect.

Step 1: The incident happens

The first priority is to protect the property and prevent further damage, where it is safe and appropriate to do so.

For example, this could mean arranging urgent repairs to prevent additional water damage or securing a property following a break-in.

Common situations that may lead to a landlord insurance claim include:

• Storm or water damage
• Fire or other major property damage
• Tenant-related damage
• Theft or malicious damage
• Loss of rental income
• Certain legal liability matters

Acting promptly can help minimise further damage and provide useful documentation for the claim.

Step 2: Lodge the claim as soon as possible

Once the immediate situation is under control, the next step is to notify your insurer as soon as possible.

Depending on the circumstances and your policy, you may be asked to provide information such as:

• What happened and when
• Photos or videos of the damage
• Repair quotes or invoices
• Property management reports
• Lease agreements
• Rent payment records
• Police reports, where applicable
• Other relevant supporting documents

Providing as much information as possible upfront can help reduce delays and minimise the need for repeated follow-up questions.

Step 3: The insurer assesses the claim

After the claim has been lodged, the insurer's claims team will review the circumstances and determine how the policy applies.

They may consider tenancy records, property condition reports, photographs, repair estimates and reports from tradespeople.

For more complex claims, the insurer may also appoint a loss adjuster or specialist to investigate the circumstances and assess the extent of the loss.

It’s important to remember that coverage varies between policies, so landlords should always refer to their specific policy documents or speak directly with their insurer.

Step 4: Settlement

If the claim is accepted, the insurer will determine the settlement in accordance with the terms of the policy.

Depending on the type of cover, this could potentially include costs associated with property damage, loss of rental income or other covered losses.

The final amount will depend on factors such as the extent of the loss, the policy's coverage and limits, and any applicable excess.

Step 5: The Claim is closed

Once the claim has been assessed and the settlement has been finalised, the claim can be closed.

But a good claims experience isn't simply about receiving a payment. Clear communication, accurate records and knowing what to expect throughout the process can make a significant difference.

Why good property management records matter

For rental property owners, keeping accurate and up-to-date records can be particularly valuable when an insurance claim arises.

Property condition reports, inspection photos, maintenance records, tenancy documents and rental records can help establish what happened and provide supporting evidence when required.

This is one of the benefits of working with a professional property management team. At Rent Choice, maintaining detailed property records and clear communication with landlords and tenants forms an important part of managing a rental property.

This article provides general information only and is not financial or insurance advice. Insurance coverage varies between policies. Landlords should refer to their policy documents and speak with their insurer or insurance adviser for advice about their individual circumstances.