Why contents insurance is just as important for renters as homeowners

Insurance can’t prevent things from happening, but it can come in handy when they do. It's more like a safeguard that can help reduce financial stress if something goes wrong (as long as it’s listed on the policy, of course).

For example, let’s say someone breaks into your rental property and steals your new TV. If theft and your stolen TV were covered by contents insurance, you’d be able to make a claim on your policy to help cover the cost to replace it. So, while taking out contents insurance as a renter is a personal choice it can help in certain situations that might otherwise leave you out of pocket.  

A landlord is only responsible for insuring the building and any contents that they choose to insure — not the tenant’s belongings. For your things to be covered by insurance, you need to take out your own contents insurance policy.

Contents insurance for renters can help cover the cost to repair or replace items you keep in your home if they’re ever stolen, damaged or destroyed by a fire, theft or other insured event. As a tenant, you don’t need to worry about insurance for the structure of the building (whether it’s a house, townhouse, apartment, etc.), or its permanent fixtures. 

All sorts of household items and valuables can be covered by contents insurance, including entertainment devices, furniture, appliances, clothing, jewellery, electronics, and more. In some situations, it can even cover prescription medication and food. For example, if a storm causes a blackout and your fridge stops working, causing the medication and food to spoil.

Contents insurance can also cover legal liability in certain circumstances. For example, if someone comes over to visit you and injures themselves at your home, you may be covered for part of any medical fees resulting from that injury that are claimed against you. 

Just remember, different limits and conditions can apply depending on the policy and the insurer, so you should always read the Product Disclosure Statement (PDS) for the full break down of what is and isn’t covered.

If you’re weighing up getting a policy, a good place to start is to work out an estimate of the current value of all your belongings. Then, you might like to consider the following questions:

• If your valuables were damaged, lost or stolen, would you have the money to replace them?

• Could you survive without certain valuables if they were damaged, lost or stolen?

At the end of the day, insurance is a personal choice, but in the absence of a crystal ball, it’s always nice to have a little peace of mind.