QBE has warned landlords to ensure their coverage is adequate after a survey revealed many would face financial difficulties if their rental business was disrupted.

The insurer’s April survey showed 38% of respondents could face financial strain if their properties were rendered uninhabitable or rental payments stopped for two to six weeks.  

About 35% of landlords had known tenants who failed to pay rent on time, and 40% of them claimed on their rental default insurance. However, 17% were not covered because they did not have the right policy or had opted out of rent default coverage.  

The study also showed 30% of landlords had suffered property damage by renters, and 61% of those had claimed for such losses.  

“Many landlords assume home insurance will cover their rental property, but the reality is that it might not – especially for things like loss of rent or tenant-related damage,” QBE Australia Pacific consumer MD Jo Hatcher said.

“This gap can leave landlords in a tough spot if something goes wrong. The right insurance can mean the difference between a short-term setback and long-term financial strain.”  

Ms Hatcher says only 56% of survey respondents had landlord insurance, while 43% opted for home covers.  

“Landlord insurance isn’t just a safety net,” she said. “It’s a practical way to help protect your property and manage the financial risks that come with renting it out.”  

The insurer adds that while most landlords are diligent in making home inspections, about 20% of landlords inspect properties only once a year or not at all.  

“If your rental isn’t inspected regularly, you have no way of knowing if the tenant is looking after it, putting your investment – and potentially your insurance policy – at risk,” QBE householders technical manager Tony Waizer said.