Renters Insurance

What is renters contents insurance?

Simply put, renters contents insurance¹ is a product that is designed to protect tenants while living in a rented property. It can help cover belongings of an individual should something be stolen² or damaged in an unforeseen event.

Depending on the level of cover, renters contents insurance can cover things, up to policy limits, such as:

• Jewellery (earrings, necklaces, rings, bracelets, pendants)
• Furniture (couches, lounge chairs, beds, tables)
• Clothing (shirts, dresses, jeans, shoes, hats)
• Electrical devices (TVs, stereos and speakers, laptops, tablets, monitors, cameras)
• Books

Varying levels of cover

As with most forms of insurance, customers investing in renters contents insurance³ have the option of taking out low or high levels of cover, which will in turn attract respective fees. In other words, comprehensive plans could come with higher premiums, while basic plans could come with lower premiums.

Nominating specific valuables:

Customers can also nominate specific items within their policy and insure them for a greater amount. This may be beneficial if you have valuable jewellery or electronic equipment that you wouldn’t be able to replace should something go wrong. Note that receipts and other proof-of-purchase documents may be required when it comes to making a claim for such items.

Portable cover:

Keep in mind that renters contents insurance can sometimes extend to belongings that are taken with you away from your home or place of residence. Examples of this may include laptops or devices that are used offsite for work and business.

Always read the Product Disclosure Statement:

It’s always important to read the Product Disclosure Statement (PDS)⁴ before making a decision to ensure that you’re getting appropriate cover that suits you. This will also help you to understand what is and isn’t covered under your chosen policy, along with any policy limits.  

What are the benefits of having contents insurance if you’re renting?

The Australian Securities and Investments Commission (ASIC)³ indicates that contents insurance can help you to claim money back on belongings lost or damaged due to the following common situations:

• Burglary
• Fire
• Any accidental event

Here are some hypothetical examples to consider:

• Fire : A faulty electrical switch explodes and catches fire, damaging your stereo. You could claim back the cost of replacing this item under a renters contents insurance policy. This would save you from going into your own pocket to repurchase what was lost.
  
  
• Theft: Thieves break into your bedroom, stealing expensive jewellery. Renters contents insurance could cover you in this situation. Depending on your policy, you could be reimbursed for the monetary value of any stolen belongings. Note, for more expensive items, further cover may need to have been taken out.
  
  
• Accidental damage: While rearranging your lounge room, your foot catches a rug and you drop your tv on the floor. The screen is smashed and the device no longer works. With an adequate level of cover, you may be able to claim some or all of the costs of buying a replacement model.

Compare* renters contents insurance policies with iSelect

Taking out a contents insurance policy could give you that added peace of mind while you’re renting. With iSelect you can compare contents insurance policies online from our range of providers. Compare online today, or call our friendly team on 13 19 20.

Sources

1. https://moneysmart.gov.au/glossary/renter-s-insurance
2. https://www.rta.qld.gov.au/Newsroom/Rentals-and-robberies
3. https://moneysmart.gov.au/home-insurance/contents-insurance
4. https://moneysmart.gov.au/glossary/product-disclosure-statement-pds

Last updated: 27/05/2020