Do Renters Need Insurance?

Did you know that over half of Australian renters don’t have insurance for their valuables? That’s a staggering number of people putting themselves at significant financial risk every day.

Here’s a closer look at how Renters Insurance helps to protect you from damage and loss to your belongings.

What is Insurance for renters?

Renters Insurance is a type of contents insurance that provides financial protection against damage and loss to the personal items in your home. It can also cover you for damage to your landlord’s house and fixtures that you may be responsible for.

Should the home you’re renting be affected by fire, theft or other unforeseen events, Renters Insurance will help ensure you don’t end up significantly out of pocket.

You may even be able to add on additional cover to protect your valuable items when they’re away from the home with you, anywhere in Australia or New Zealand, and sometimes when you’re overseas (review cover for detail).

Do I need contents insurance while renting?

Some renters may mistakenly believe their valuables are covered under their landlord’s insurance policy. Or perhaps some simply think, “It won’t happen to me.”

Yet one in 15 Australians will file a claim on their Home and Contents insurance each year – that’s nearly 720,000 claims.

Ask yourself, ‘If disaster struck, would I be in a financial position to replace all my furniture, clothes, computers and electronics?’ We can’t control everything that happens, but we can take steps to reduce the financial impact of unexpected events.

That’s why it’s so important to have Contents insurance to cover your valuable belongings against damage and loss due to:

Fire
Vandalism
Theft and attempted theft
Storm damage and lightning
Water damage and floods
Explosion and impact damage
Earthquakes.

Always read over the terms and conditions of your policy to make sure you understand the exclusions, limits and conditions that may affect your coverage. If you have any questions, speak to your insurer.

What types of personal items are covered?

With furniture, appliances, clothing, computers, electronics and jewellery, the value of the contents in your home can quickly add up to thousands of dollars. Renters Insurance is designed to cover you for the replacement value of these everyday items and more.

However, bear in mind that it’s your responsibility to keep your receipts and to determine the correct replacement value for your items. In some cases, this may involve having an appraiser create a valuation for the more expensive items.

Are there different types of Contents insurance?

While all Contents insurance policies are designed to do one thing – protect the contents in your home – there is no one-size-fits all approach to your cover.

You can tailor your Contents policy to meet your needs by adding optional extras for a higher premium.

For example, you may want to take out additional cover for:

Accidental damage. Covers you for loss or damage to contents caused by an accident in the home.
Flood insurance. Provides additional cover for the contents in your home due overflowing lakes, rivers, dams, etc.
Personal effects cover. Insures your valuable items away from home. There are two types of personal effects cover:
Unspecified. Covers unspecified items worth up to $1000.
Specified. Covers specified items listed on your insurance certificate worth $1000 or more.
Collections cover. Allows you to insure expensive items, such jewellery and artwork, at their appraised value.

Why you don’t need Home insurance when you’re renting

Home insurance differs from Contents insurance in that it’s designed to cover the cost repairing, rebuilding or replacing the building itself. That’s why, as a renter, you don’t need to carry Home insurance.

On the other hand, if you’re a homeowner (or planning to become one) it’s important to carry Home and Contents insurance to cover both the building and the contents within it.

In the market for a great Contents insurance policy?

As a renter, Contents insurance is one of the most important types of cover you can buy.

The good news is, iSelect has partnered with Budget Direct to help you save a bundle. As a new Budget Direct customer, you can shave 20% off the price of your policy by purchasing Smart Contents insurance online.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.