Canstar’s Latest Update Sharpens the Cost Question for Landlords

The update also points to a more uneven insurance market. Nationally, average landlord insurance costs for houses rose by $93, or 3.65%, compared with the previous year, while units increased by only $2, or 0.46%. For landlords already managing higher mortgage costs, maintenance bills and periods of tenant affordability pressure, even moderate premium growth can affect annual cash flow planning.

Regional differences remain especially important. Canstar’s figures show North Queensland as the most expensive area in the comparison, with an average house premium of $4,482, followed by the Northern Territory at $4,157. These higher figures are consistent with the broader insurance challenge facing properties exposed to cyclone, storm, flood and other weather-related risks. For investors, that means the cheapest policy may not be the safest answer if key events are excluded or subject to restrictive limits.

This is an extension of the premium pressure story already facing landlords, but the practical lesson is more precise: renewal time should be treated as a risk review, not an automatic payment. Investors should check whether their policy still reflects current rebuilding costs, rental income, tenant-related risks, landlord contents and liability exposures. Loss of rent, rent default, malicious damage, accidental damage and pet-related damage can vary materially between policies, so the headline premium rarely tells the full story.

Landlords looking to compare landlord insurance options should consider more than annual cost. Useful review questions include:

• Does the policy cover the tenant risks most relevant to the property and lease type?
• Are flood, storm, fire and liability inclusions suitable for the suburb and building?
• Are excesses, waiting periods and claim caps clearly understood?
• Has the sum insured been reviewed against current repair and rebuilding costs?

Where cover is complex, particularly for multiple properties, high-risk locations or furnished rentals, speaking with brokers may help investors compare exclusions and limits more carefully. The key takeaway is clear: in 2026, landlords need insurance that is affordable, but also resilient enough to protect rental income and long-term investment value when something goes wrong.