A recent survey by QBE has highlighted a potential risk exposure among Australian landlords, with 38% indicating they could encounter financial stress within two to six weeks if rental payments stopped or the property became uninhabitable.
Despite this vulnerability, only 56% reported having landlord-specific insurance.
The data, collected from 500 landlords in April 2025, underscores a mismatch between the level of protection landlords assume they have and the coverage they actually maintain.
The findings suggested that a significant proportion may not be adequately insured for rental income loss or tenant-related property damage.
Jo Hatcher, managing director of consumer at QBE Australia Pacific, said the research points to a common misunderstanding about what standard home insurance policies include.
“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,” she said.
The survey revealed that 34% of landlords had dealt with tenants falling behind on rent, while 30% reported property damage caused by tenants.
Among these landlords, 17% said their losses weren’t covered due to either insufficient insurance or not selecting key policy add-ons such as rent default protection.
Hatcher said many landlords manager their properties well, but that doesn’t always translate into having the right insurance arrangements.
“These findings highlight the importance of checking that your insurance matches your needs. Without the right cover in place, landlords can be left financially exposed if their tenants fall behind,” she said.
QBE encourages landlords to regularly review their policies, especially in light of ongoing changes to the property market and rental dynamics.
Most landlords (70%) rely on property managers or agents to oversee day-to-day responsibilities.
While over 80% confirmed that inspections occurred every three to six months, nearly 20% admitted inspections were annual, irregular, or unclear.
Hatcher said routine inspections aren’t just about maintenance – they’re a safeguard against longer-term financial and legal complications.
“Regular inspections are key to protecting your investment, especially when unexpected issues arise. Keeping a close eye on your property helps avoid small problems becoming major headaches,” she said.
The survey comes amid ongoing concerns within the property and insurance sectors about systemic issues affecting supply, affordability, and regulatory efficiency.
These themes were central to discussions at the 2025 Sydney Property Think Tank, hosted by Colin Biggers & Paisley with partners including Macquarie Bank and RSM Australia.
The forum explored how rising construction costs, planning delays, and labour shortages continue to restrict housing delivery.
Nerida Conisbee, Ray White’s chief economist and chair of the Construction Forecasting Council, said that New South Wales had completed fewer than 46,000 new dwellings in the past year – well short of the 57,000 estimated to be required.
For underwriters and brokers, these issues carry implications for how risks are assessed and premiums calculated, particularly as delays and cost pressures may impact insured values and project viability.
Speakers at the forum, including Pacific Planning’s Matthew Daniel and Centennial Property Group’s Jonathan Wolf, raised concerns about planning system inefficiencies and labour shortages.
Daniel suggested integrating development economics into planner training, while Wolf called for immigration reforms to ease trade skill shortages.
The event also considered the use of modular building techniques and standardised design templates to help lower costs and speed up project delivery.
However, implementation barriers, especially at the local council level, remain a challenge.
There was also debate around inclusionary zoning, a policy tool requiring new developments to include affordable housing. Views were mixed, with some questioning its impact on investment and others pointing to broader regulatory reform as a more effective solution.
