A Fire Is Every Landlord’s Worst Case Scenario. Are You Actually Covered?

It’s not something any landlord wants to think about, but it does happen.

Fire incidents in rental properties are rare—but when they occur, they can be devastating for both owners and tenants. In almost every case, the first question that follows isn’t about repairs or timelines. It’s about insurance… and whether the right cover is actually in place.

That moment is more common than you’d think.

And it highlights a gap we still see across Brisbane. Some investors either don’t have the right cover in place, or haven’t reviewed it in years.

If you own an investment property, this is worth checking now. Not later.

Fire Risk Isn’t What It Used to Be

Fires in rental properties aren’t always caused by obvious issues anymore.

Everyday items like phones, e-bikes, laptops and power tools now rely on lithium-ion batteries. These are in almost every home and they come with real risk if damaged, overcharged, or used incorrectly.

In Queensland alone, there were over 200 lithium-ion battery fires in 2025, highlighting how common these incidents are becoming.

With high-density living across Brisbane and more tenants using e-bikes, scooters and portable devices, these risks are becoming more relevant for local investors.

Even well-maintained properties with great tenants are now exposed to risks that didn’t exist a few years ago.

The Two Covers Every Landlord Needs to Understand

When it comes to protecting your investment, there are two key types of insurance. And they serve very different purposes.

Building Insurance

This covers the physical structure of the property.

If there is a fire, storm, or major damage, building insurance is what pays for repairs or rebuilding.

Without it, you are personally responsible for the full cost.

We still come across investors who assume strata or other arrangements cover everything. In some cases they do. In many cases, they don’t.

If you own a house, building insurance is essential. If you own a townhouse or unit, it is critical to understand exactly what is and isn’t covered by body corporate.

Landlord Insurance

This is where many investors fall short.

Landlord insurance goes beyond the building. It protects your income and your position as an investor.

One of the most important inclusions is loss of rent.

If a property becomes uninhabitable due to a fire or major damage, you could be without rental income for weeks or months.

Landlord insurance can cover that loss, depending on the policy.

It may also cover:

• Tenant/Pet-related damage
• Loss of rent due to tenant default
• Legal liability in certain situations
   

Not all policies are equal, and not all situations are automatically covered. This is why reviewing your policy matters.

When Claims Get Complicated

One of the biggest misconceptions is that insurance will just cover it.

In reality, claims are assessed case by case.

For example:

• If a fire is caused by an accident or tenant misuse, it is often covered
• If it is linked to faulty installation or negligence, it may not be
   

This is where things can become unclear quickly.

We have seen situations where owners assumed they were covered, only to find gaps once a claim was lodged.

Simple Steps to Protect Your Investment

You don’t need to overcomplicate this. But you do need to be proactive.

Here’s what we recommend:

• Review your building insurance sum and confirm what is actually covered
• Check your landlord insurance, specifically loss of rent and damage inclusions
• Make sure smoke alarms are compliant and working
• Set clear expectations around things like charging e-bikes or devices indoors
• If tenants request additions like EV chargers, ensure they are professionally installed and approved
   

This isn’t about eliminating risk completely. It’s about reducing exposure and making sure you’re protected if something does happen.

A Quick Check Now Can Save You Thousands Later

The reality is simple.

Some landlords only think about insurance after something goes wrong.

The better approach is to review it now, while you still have options.

At Aurora, we work closely with our landlords to help identify risks, ask the right questions, and make sure you’re not exposed in areas you didn’t expect.

If you’re unsure what your current coverage looks like, or whether it’s enough, it’s worth having that conversation.

Because when something like a fire happens, you don’t want to be figuring it out in real time.