Malicious or accidental damage by a tenant, legal liabilities, loss of rental income ... the list of hazards facing landlords is almost endless, and, not surprisingly, many choose to hand the day-to-day responsibility for their investment properties to real estate agents or property managers.

But one responsibility that can't be passed on is obtaining suitable insurance cover.

National sales manager at Terri Scheer Insurance Brokers Kristy Gregory says landlords should double-check their insurance policy's fine print to ensure they're covered for common tenancy mishaps.

"We have so many conversations with landlords who have taken out a building policy, often called a 'landlord' product, and assume they're covered, only to find out later the cover is severely limited," Ms Gregory says.

"Even if they say, 'I've got landlord cover', we tell them to check if they're covered if the tenant defaults, for malicious damage and arson, and if it does, check the excess."

According to the brokers' Victorian office manager Christine Fraser, standard building insurance offers some protection for landlords, but often contains clauses excluding malicious damage by a tenant, accidental damage, legal liability and cover for the loss of income.

"But for the owner of an investment property, these are the very reasons why claims are made," Ms Fraser says.

The level of cover and premiums charged for landlord insurance differ from broker to broker.

As a guide, Terri Scheer's Landlord Preferred Policy will cover up to six weeks rent if tenants abscond and up to 15 weeks if tenants default on their payments and the landlord has to repossess.

Taking cover

Before signing up for 'landlord insurance', check that it covers the following risk factors: