How Much Does Commercial Landlord Insurance Cost in Australia?

Key points

• Two $2 million non-combustible buildings on a $1,000 excess were quoted $10,731 and $4,013 for the building section alone, each the most competitive insurer on our panel for that building on the same day.
• As at October 2026, the median annual premium for Queensland landlords' standalone liability policies in our book was $465, depending on the tenancies.
• Check a prospective tenant's effect on the premium before signing the lease.
• A lower building sum insured can reduce the premium and leave you short when claiming.

What were five commercial landlords quoted?

Each figure is the price from the most competitive insurer on our panel for that building on that day. None of them is an average or a market rate.

B and C make the point. Both are $2 million non-combustible buildings with a $1,000 excess, yet B costs more than two and a half times what C costs. B is leased to a takeaway with a deep fryer and C to two professional offices. These quotes show how strongly the tenant's trade can affect price.

Whole landlord policies on one building in our book: median annual premiums as at October 2026.

Most of those policies carry loss of rent and the owner's liability. A quote for one building can still sit well above these middle figures: B's building section alone, for the takeaway with a deep fryer, cost more than the middle whole policy for a $2 million to $3.5 million shop. The tenancy can shift any of them a long way. How the building, the rent and your liability fit together in one policy is on commercial landlord insurance.

Why did my renewal go up, and can it come down?

We take the building to the insurers on our panel. On one $1 million warehouse in August 2026, nine quotes came back on the same day, from $5,000 to $20,000. That spread was one building on one day.

Insurers usually review five years of claims. A poor history can add a premium loading and reduce insurer choice, often removing cheaper options. Repeated maintenance-related losses generally matter more than a one-off.

Compare cover as well as price before dropping a section or lowering a limit. Why your commercial insurance went up explains the renewal choices.

What are you paying for in a commercial landlord premium?

Set the building figure at rebuilding cost, excluding land. Commercial property insurance explains what belongs to each party; commercial building insurance explains the cover. A lender may request more: the commercial property loan guide explains its requirements.

Loss of rent needs enough money for the chosen indemnity period. Selecting 24 months does not double the sum insured. On the policies we arrange, rent must be scheduled and lost because insured damage prevents use. Include recoverable outgoings such as rates and insurance. Loss of rent insurance explains both limits and the calculation.

Standalone landlord liability premiums in our book, as at October 2026, were a median $465 a year in Queensland. At $10 million and $20 million limits respectively, the medians were $405 and $492 in Queensland, $374 and $495 in New South Wales, and $331 and $438 in Victoria. They include all fees and charges and vary with the tenancies. Why liability premiums keep rising considers the excess trade-off.

In our experience, increasing liability from $10 million to $20 million normally costs $50 to $150 a year, depending on the building and tenants. A strip of shops or arcade often sits towards the higher end. Property owners liability explains why your tenant's cover may not protect you.

How a broker builds the quote

Automatic indexation can leave a figure short if it started too low. In our experience, most landlords we see lack a current rebuilding figure and are underinsured. A desktop building replacement estimate uses aerial and street imagery, without a site visit, to help set that figure.

On the business packs we place, the average clause uses 80 per cent of rebuild cost. Some compare your sum insured with that figure; some use a limit 20 per cent above your sum insured. A short figure can reduce a partial claim, subject to the calculation and small-claim exemptions in your wording. On a total loss, most pay up to 20 per cent above the sum insured; you fund any remaining rebuild cost. The co-insurance and underinsurance guides explain the difference.

A higher excess may reduce the premium. We compare the saving on each quote.

Why your tenant's trade sets your price

Tell the insurer when activities change. A policy still describing an office after it becomes a workshop can leave a claim in dispute.

Check the insurance cost before signing with a new tenant. Some activities reduce insurer choice; on a gross lease, an increase falls to you. Knowing beforehand lets you consider the rent and outgoings. Who pays building insurance shows a real example.

The months between tenants matter too. On most of the policies we place, cover for fire, storm, water damage, malicious damage and theft stops once a building has been empty for 90 days in a row, unless the insurer agrees in writing.

A tenant's cool room can introduce sandwich-panel walls that reduce insurer choice. Commercial building insurance costs explains the threshold; industrial building insurance covers panel walls and asbestos roofs.

How your lease changes what you pay

Tenants commonly insure their fit-out and glass and service the air conditioning, while the owner replaces failed capital items. Mechanical or electrical failure needs breakdown cover. The commercial landlord insurance guide explains this, including owner-funded fit-out the tenant must insure. Ask your solicitor about the damage and destruction clause's effect on rent.

In our experience, glass claims are modest but recurring. A lease can make the tenant insure glass without transferring ownership; check their policy carries it. Retail, office and warehouse insurance explain the tenant's cover.

A tenant seeking cheaper outgoings may ask for a lower building sum insured. Any uninsured repair or rebuild cost remains yours. Who pays building insurance explains why.

What several tenants do to your premium

A floor-area split does not reflect those different risks. If requested, we can rate and invoice tenancies separately. The lease still determines each tenant's share.

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