The New Risks From Pet Law Changes And Landlord Insurance Pet Damage Claims

Pet rental laws are changing how landlords manage rental properties across Australia. More tenants now expect to be able to keep pets. In some states, landlords also have fewer reasons to refuse a pet request. This raises an important question: what happens if a tenant’s pet damages the rental property?

Landlord insurance for pet damage claims may help in some cases, but cover is not automatic. A landlord insurance policy may treat pet damage as accidental damage, malicious damage or tenant damage. This depends on the insurer and the policy wording. Some policies include limited cover, while others exclude pet damage.

Pet damage claims can include scratched timber floors, stained carpets, chewed skirting boards, damaged doors, torn flyscreens, strong odours or damage to landlord-owned contents. Before approving a tenant’s pet, landlords should check whether their policy covers pet damage claims, what exclusions apply, whether the pet must be named on the lease, and whether their bond, condition reports, and inspection records can support a claim.

Landlord Insurance For Pet Damage Claims

Landlord insurance for pet damage claims means cover that may help pay for damage caused by a tenant’s pet at a rental property. This may include damage to carpets, flooring, doors, walls, fixtures, fittings or landlord-owned contents. However, pet damage cover is not standard across every landlord insurance policy. Landlords should check the policy wording before they rely on it.

Some insurers treat pet damage as part of accidental damage cover. Others may classify it as tenant damage, accidental or malicious damage, or a specific pet damage benefit. In some policies, damage from a tenant’s pet may be covered up to a set limit, such as $4,000 per claim. Other policies exclude pet-related damage, especially if the pet was not approved, not listed on the rental agreement, or the damage built up over time.

Pet Damage Issue	Why It Matters For Landlords	Insurance Consideration
Scratched timber floors	Repairs can be costly and may affect presentation for future tenants	May only be covered if the policy includes pet damage or accidental damage cover
Urine-stained carpets	Damage can affect carpet, underlay and odour control	Gradual damage or poor cleaning may be excluded
Chewed doors or skirting boards	Can require repair or replacement before the property is re-let	The insurer may need photos, invoices and condition reports
Torn flyscreens or blinds	Often classed as tenant-related damage if caused by a pet	Landlord contents cover may be relevant for landlord-owned items
Strong pet odours	Can reduce tenant appeal and delay re-letting	Many policies exclude odours or gradual deterioration
Damage by an unapproved pet	Can create disputes with the tenant and the insurer	Cover may be denied if the pet was not named on the lease

Landlord Insurance Policy

A landlord insurance policy is designed for rental properties, not owner-occupied homes. This matters because standard home insurance usually protects the owner’s home and personal belongings, not the tenant’s personal belongings or the tenant’s possessions. Landlord insurance can respond to tenant-related risks linked to a valid rental agreement.

A policy may include landlord contents cover, liability cover, legal expenses, rent default and loss of rental income after an insured event. It may also include cover for accidental damage caused by a tenant’s pet, sometimes with a per-claim cap, depending on the insurer, policy type, and the contents sum insured.

Before approving a tenant’s pet, landlords should read the product disclosure statement and check the exact terms of their insurance cover for full details. The policy should explain whether pet damage is included, excluded, capped, or only available as an optional extra.

Rental Income

Pet damage can affect rental income if the property cannot be leased while repairs take place. For example, badly stained carpets, damaged flooring or strong pet odours may need to be fixed before a new tenant moves in. If the damage is linked to an insured event, some landlord insurance policies may help cover lost rental income during the repair period.

Landlord insurance can also include loss of rent cover for other tenant-related risks, such as rent default. This is different from a pet damage claim, but both can affect the landlord’s cash flow. Some policies may cover loss of rent for up to 12 months or up to 52 weeks. This depends on the policy wording, claim type and insurer.

Landlords should check whether their policy covers loss of rental income after tenant damage, pet damage or repairs. They should also confirm whether the cover applies to the weekly rental amount listed in the rental agreement. Waiting periods, caps and exclusions may also apply.

Rental Income Risk	Example Scenario	What Landlords Should Check
Pet damage delays re-letting	A tenant’s pet damages carpets, and the property needs repairs before a new lease starts	If loss of rental income applies during insured repairs
Rent default	A tenant stops paying rent before or after a dispute about damage	If rent default cover is included, and what evidence is required
Untenantable property	Damage makes the rental property unsafe or unsuitable for tenants	If loss of rent applies after an insured event
Weekly rent limit	The policy bases payments on the weekly rental amount	If the insured amount matches the current rental agreement
Repair delays	Flooring, doors or fixtures need replacement before re-leasing	If the policy has time limits, caps or waiting periods

Landlord Insurance Cost

Landlord insurance cost has become a bigger issue for many property investors as insurance premiums continue to rise.

When reviewing landlord insurance costs, landlords should consider:

• Whether pet damage is included, excluded or capped
• Whether accidental damage cover is standard or optional
• Whether loss of rental income is included after an insured event
• Whether rent default cover applies to tenant-related risks
• Whether building cover and landlord contents cover are set at suitable levels
• Whether the excess amount makes small claims less worthwhile
• Whether claims history may affect future insurance premiums

Premiums can vary by postcode, property type, housing type, building materials, claims history and the level of cover selected. A rental property in an area with higher weather risk, theft risk or repair costs may cost more to insure. A higher excess can lower landlord insurance premiums, but it can also increase the amount a landlord pays when making a claim.

Building Insurance

Building insurance can protect the physical structure of a rental property against insured events such as fire, theft, vandalism, storms and certain natural disasters. Since building insurance is not immediately included in the regular Landlord Insurance package, it’s important to check with your provider if they have options that cover both. For landlords, this cover is important because tenant-related damage may affect more than surface finishes.

A tenant’s pet could damage doors, skirting boards, built-in cupboards, flooring or fixed fixtures that form part of the building. In a strata property, the body corporate may arrange building cover for common property and the main structure, while the owner may still need separate landlord cover for fixtures or items not included.

However, building insurance does not automatically cover every type of damage at an investment property. Pet damage may only be covered if the landlord’s insurance policy includes it under tenant damage, accidental damage cover, malicious damage or a specific pet damage benefit. If the policy excludes pet-related damage, the landlord may need to rely on the rental bond, tenant reimbursement or their own funds.

Landlords should review their building insurance by checking:

• Whether the building cover applies to tenant-related damage
• Whether pet damage is included, excluded or capped
• Whether accidental damage cover applies to fixed building items
• Whether malicious damage by tenants is covered
• Whether the building sum insured reflects current repair and rebuild costs
• Whether flood cover or other natural disaster cover is optional
• Whether the policy requires the tenant’s pet to be approved and named on the lease
• Whether exclusions apply for wear and tear, gradual damage or poor maintenance
• Whether buying landlord insurance online changes the price or available policy options
• Whether discounts such as a multi-policy discount apply, while still comparing whether the cover suits the property

The building sum insured should reflect the realistic cost to repair or rebuild the rental property, not the market value. Location, building materials, labour costs, access, age and construction type can all affect repair costs after an insured event, and any discount may be subject to a minimum premium.

Landlord insurance tax treatment may also matter for property investors, and premiums may be landlord insurance tax-deductible depending on circumstances.

Compare Landlord Insurance

Landlords should compare landlord insurance before approving pets or renewing cover. Each insurance provider may treat pet damage differently. Some policies include limited pet damage cover. Some offer it as an optional extra. Others exclude it. This makes the product disclosure statement important, especially when rental laws make pet requests more common.

A strong landlord insurance policy should match the property, tenant risk, rental agreement and the landlord’s financial situation. It should also explain how pet damage claims, rent default, legal expenses, loss of rent and accidental damage cover are handled.

Landlords should not compare policies on price alone. A cheaper premium may come with lower caps, more exclusions or no pet damage cover. If flood cover is relevant, check how the policy defines it, as some wording refers to water covering normally dry land.

What To Compare	Why It Matters	What Landlords Should Check
Pet damage cover	Not all policies cover damage caused by a tenant’s pet	Whether pet damage is included, excluded, capped or optional
Accidental damage cover	Pet damage may fall under accidental damage in some policies	Whether accidental damage cover applies to tenant-related damage
Loss of rent	Repairs after damage may affect rental income	Whether the policy covers lost rental income during insured repairs
Rent default	Tenant defaults can affect cash flow	Whether rent default is included and what evidence is required
Legal expenses	Disputes may involve tribunal or recovery costs	Whether legal expenses and legal costs are covered
Building cover	Damage may affect fixed parts of the rental property	Whether the building sum insured reflects current repair costs
Landlord contents cover	Landlord-owned items may be damaged by pets	Whether carpets, blinds, curtains or appliances are covered
Claim conditions	Claims can be denied if reported late or inaccurately	Whether photos, videos, condition reports and proof of value are required

Rent Default

Rent default is separate from pet damage, but both can sit within the wider group of tenant-related risks. A tenant may stop paying rent before, during or after a dispute about damage. This can place extra pressure on the landlord’s rental income and repair budget.

When reviewing rent default cover, landlords should check:

• Whether rent default is included in the landlord insurance policy
• Whether cover applies only when there is a valid rental agreement
• Whether the policy uses the weekly rental amount listed in the lease
• Whether waiting periods or claim limits apply
• Whether the insurer needs rent ledgers, notices or tribunal records
• Whether loss of rent during repairs is treated separately
• Whether tenant damage or pet damage affects the claims process
• Whether a claim can be lodged by phone or through the insurer’s online portal

Landlord insurance can cover tenant-related events like rent default, depending on the policy wording and claim evidence. It may also cover loss of rent during repairs after an insured event. Landlords should check whether pet damage qualifies and whether any caps, exclusions or reporting timeframes apply.

Accidental Damage Cover

Accidental damage cover can help protect landlords when unexpected damage occurs at a rental property. For pet damage claims, this may include sudden damage caused by a tenant’s pet. Examples include a dog scratching a door, a cat damaging blinds or a pet chewing fixed fittings. The damage must usually meet the insurer’s policy definition of accidental damage.

Pet damage is not treated the same way across all landlord insurance policies. Some insurers may classify it as accidental damage. Others may treat it as tenant damage, malicious damage or a separate pet damage benefit. Standard wear and tear, gradual deterioration, odours, poor cleaning or damage that builds up over time are often excluded.

Type Of Damage	Example	Possible Insurance Outcome
Accidental pet damage	A tenant’s dog damages a door during the lease	May be covered if accidental damage cover includes pet damage
Gradual pet damage	Ongoing urine stains or odours build up over several months	Often excluded as gradual damage or poor maintenance
Malicious damage	A tenant intentionally damages the rental property	May be covered if malicious damage by tenants is included, including intentional damage in some policies
Wear and tear	Light carpet wear from normal use over time	Usually excluded from landlord insurance cover
Unapproved pet damage	A pet not listed on the rental agreement causes damage	May be denied if the policy requires approved pets only
Damage to landlord contents	A pet damages blinds, curtains or landlord-owned furniture	May depend on landlord contents cover and policy limits

Keep photos, invoices, condition reports and tenancy records ready, as insurers often ask for evidence.

You can often lodge a claim by phone or through the insurer’s online portal, depending on the insurer.

Check whether the damage appears accidental or malicious, as pet-related circumstances may affect how the claim is assessed.

Holiday Rental

Holiday rental properties can carry different insurance risks from long-term rental properties. A tenant’s pet in a standard lease is usually managed through the rental agreement. Pet damage in a holiday rental may involve short-stay guests, booking platform rules and different policy conditions.

Standard landlord insurance may not cover a short-term rental property or holiday rental unless the policy allows this type of use. This matters because guest damage, pet damage, loss of rent and liability cover may be assessed in a different way when the property is used for short stays.

Landlords who allow pets in a holiday rental should check whether their insurance cover applies to guest pets, accidental damage, landlord contents, legal liability and lost rental income. They should also avoid relying only on platform protections, as these may not replace a suitable landlord insurance policy.

Claims History

Claims history can affect landlord insurance cost because insurers may review past claims when assessing the risk of a rental property. If a landlord has made several claims for tenant damage, pet damage, rent default or loss of rent, the insurer may increase the premium, apply a higher excess or place stricter conditions on future cover.

Landlords should still make valid pet damage claims when needed, but they should reduce claim risk with clear records, detailed inspections and early action. Entry and exit condition reports help show when damage occurred, while regular inspections can identify pet-related issues before they become more expensive to repair.

Landlord Insurance For Pet Damage Claims And Pet Law Changes

Pet law changes have made it more important for landlords to manage pet approvals with clear lease terms, strong condition reports and suitable insurance cover. Since pet damage cover is not universal, landlords should check whether their landlord insurance policy covers pet damage claims, whether a claim cap applies, whether the pet must be named on the lease and whether accidental damage cover is included or optional.

The right landlord insurance policy can help protect rental income, building cover, landlord contents and legal liability when tenant-related risks occur. If you want to compare landlord insurance options for your rental property, call Duo Insurance on 1300 212 323 or get a free quote today.