---
title: What is the difference between loss of rent and rent default cover?
description: Loss of rent and rent default protect against different causes of lost rental income. Learn how the covers differ and what policy conditions may apply.
url: "https://www.webberinsurance.com.au/help/insurance-products/landlords-insurance/loss-of-rent-vs-rent-default"
updated: "2026-10-07"
category: Insurance Products / Landlords Insurance
---

# What is the difference between loss of rent and rent default cover?

Loss of rent and rent default cover protect against different causes of lost rental income. Loss of rent generally applies when insured property damage makes the rental property uninhabitable. Rent default relates to specified non-payment or tenancy events, where the insurer offers and includes that cover.

## What is loss of rent cover?

Loss of rent cover may respond when an insured event, such as fire, storm or water damage, prevents the tenant from living at the property.

The policy may pay the rent that would otherwise have been received while covered repairs are completed. Time limits, monetary limits and other conditions apply.

## What is rent default cover?

Rent default cover may protect against certain losses when a tenant stops paying rent or leaves unexpectedly.

Depending on the insurer and policy, cover may be automatically included, unavailable, or available by request. It can have specific eligibility requirements, waiting periods, excesses and claim limits.

## Are loss of rent and rent default automatically included?

Not always. Insurers structure Landlords Insurance differently, so it is important to check:

- Whether each cover is included or optional.
- The events that trigger cover.
- Applicable excesses, waiting periods and limits.
- Requirements for written tenancy agreements and rental records.
- Any exclusions relating to the tenancy or property condition.

## What records should I keep?

Keep the signed tenancy agreement, rental ledger, property condition reports, inspection records and correspondence with the tenant. These documents may be required if you need to claim.

Webber Insurance can help you compare the available cover and understand how the relevant policy terms apply.

  **General Advice Warning:** The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.