Contents insurance only covers your contents in the event they’re damaged by certain insured events (e.g. fire or theft). With insurance for renters, you can protect your furnishings, clothing, electronics and other items found in your home against loss, theft or damage.
Depending on your insurer and policy, you can also insure specific items that you regularly take out of the house (like your bicycle, phone or handbag) with personal effects cover.
Some events that your insurance for renters could cover for include:
Some of these coverages may be automatically included in your contents insurance, while others may be offered as optional extras you can include in your policy for an additional cost.
N.B.: Insurance for renters will usually provide cover up to certain limits, sub-limits, terms and conditions. Make sure you check the relevant Product Disclosure Statement (PDS) for a full list of inclusions and exclusions in your policy.
Depending on your renters insurance policy, you may have the option to add additional cover for things like:
If you’re moving to a new house, some contents policies may also include transit insurance. This provides limited cover against things like fires and car accidents when your contents are being taken by professional movers to another property.
Keep in mind that any optional extras you add to your policy will usually incur an additional cost.
Your contents insurance premiums depend on several things, including the value of the belongings you want to insure. Another factor that may affect the cost of your contents insurance is any item that’s particularly expensive to replace, which may need to be added separately to your policy for an additional cost. In addition to the value of your possessions, the excess can also affect how much a policy costs.
A combined home and contents insurance policy can cover both. Should anything happen to your home or the contents inside it, you could be reimbursed up to the sum insured amount listed on your policy if you’re suitably insured.
Be sure to check the PDS to understand your policy benefits, limits, terms and conditions. You should also make sure that you’re adequately insured for certain events.
The cost of home and contents insurance will be unique to each person because it’s calculated based on several factors. For instance, your premiums can be affected by the level of cover you choose; a premium policy will cost more than a basic policy, as it will include more benefits and cover a broader range of events.
Other factors that may influence the cost of your insurance can include:
Also, any optional extras you add to your policy for an additional coverage will affect the cost of your insurance. Optional extras can include things like insurance for portable items, flood damage and accidental damage cover.
If you want to get an idea of how much home and contents insurance could cost you, you can complete a quote through our comparison service.
Depending on the insurer and policy, insurance for landlords may cover you for loss, theft or malicious damage to your rental property by your tenant. This type of policy may also cover you for repairing or rebuilding your investment property after a natural disaster, such as a storm, flood or fire. Insurance for landlords can also cover loss of rental income due to tenant default, although this may be offered as an optional extra.
As well as cover for the building, landlords insurance will usually cover fixed items like:
Landlords insurance can also cover your legal liability if a tenant is injured or their property damaged in your rental home. Remember to always read your PDS to know exactly what you’re covered for.
We always hope that tenants will do the right thing, but sometimes things can go wrong. Your investment home could be damaged, the lease broken or your tenant might not pay the rent. Don’t forget also that this is Australia, where natural disasters are all too common. Without landlords insurance, you could be thousands of dollars out-of-pocket if something like this happens to you.
Which is why finding the right policy is so important. Luckily, this is where we can help. No matter the type of home you’re renting out, we can help you compare great-value in just minutes with our landlords insurance comparison tool.
Strata insurance covers the cost for repairs or replacement of both the external walls of a building and common property in a strata-titled complex. However, prices will vary between properties and types of insurance depending on how much the house or building would cost to repair or replace.
It’s common for strata insurance to cover fixtures and amenities like:
In some instances, strata insurance may also cover fixed (unmovable) parts of your building, like ducted air conditioning.
Generally, strata insurance (like home insurance) won’t cover you for the interior walls as well as fixings like blinds, curtains or carpets; these are usually covered by landlords insurance. A strata policy also won’t cover your personal belongings, which can be protected by contents insurance.
As such, owner-occupiers or renters will still need to take out a contents-only policy if they want to cover their possessions in a strata-titled property.
Your excess is the amount you may be required to pay when you make a claim. Excesses vary across policies and insurers.
To explain how an excess works, let’s say a storm damaged your home and the repair costs are $5,000. If your policy has a $500 excess, your insurer may deduct this amount from the $5,000 leaving the remaining $4,500 as a payout to you or in repairs or replacement costs.
If you need to make a claim on your combined home and contents policy for both your home and possessions for the same event, you may only pay one excess, which will likely be the highest excess fee out of the two.
If your home is damaged again later from a different event, you will usually need to pay another excess for the new claim.
This is how much you choose to insure your home and contents for and it can impact your premium. Generally, the more you’re insured for, the higher your premiums will be.
A high crime rate in your neighbourhood could increase your premiums. Conversely, living in a safer area or having additional security installed at your home (e.g. fences, alarms or cameras) may reduce your premiums.
For example, an older tin roof might be more likely to leak in a storm and damage your contents, which means a higher likelihood of claims being made. This increased risk may then bump up your premiums. Conversely, a sturdy new brick home may cost less to insure than an older wooden home.
If your home is in a risky area, like a flood or bushfire zone, you might find your premiums will increase in line with the higher probability of an insurance claim being made for these events.
Naturally, adding more cover to your policy will lead to an increase in premiums. How much that increase will be, though, depends on your insurer and how many extras you add.
Some optional covers you might find in various home and contents policies include:
To help you decide which policy is the most suitable to your home, we’ve summarised the coverage offered by each type in the following table.
Covered by landlord
If applicable, covered by landlord
If applicable, covered by your body corporate fees
Covers the landlord’s contents
If applicable, covered by your body corporate fees
Yes, most insurance providers will cover water damage in a home insurance policy when it’s caused by a sudden escape of liquid. It won’t cover damaged contents (that’s what your contents policy is for), but it may cover your walls, carpet and interior wall fittings if damaged by water escaped due to an insured event.
Strata insurance can cover the common property of the complex for damages caused by unexpected or accidental escape of liquid from any burst pipes, drainage or sewage systems, fixed tanks, waterbeds, appliances, or related water damage from a neighbouring apartment (dependent on circumstances). However, water damage caused by overflowing your bathtub or blocking your toilet (for example) is generally covered by your contents insurance.
Much the same as water damage, if fire or smoke damage occurs in your apartment or on the common property as a result of a fault in the building, this would likely be covered by your building’s strata insurance. Your contents insurance would then cover fire damage caused to the interior of your home.
Insuring the building you live in for flood damage will be a matter for your landlord and isn’t typically a tenants responsibility. If you have a contents insurance policy as a renter, it may cover the replacement of your belongings that are damaged or destroyed by flooding. While some policies might not automatically include flood cover, it may also be offered as an optional extra you can add on. Just keep in mind that any optional extras you add to your policy will likely affect your premiums.
Flood damage to the home’s physical structure could be covered by your landlord’s insurance depending on the policy your landlord has taken out.
Depending on your renter’s insurance policy, there will be specific terms, conditions and possible limits on the amount you can claim for flood damage to your contents.
It’s best to check with your insurer or your PDS for more information on what you’re covered for.
If you get the right policy with the right extras, contents insurance for renters can offer replacement or repair costs for items that are kept outdoors or outside of your address, including bicycles, sporting equipment and gardening tools. Contents insurance will generally cover these things if they’re damaged or stolen, whether they’re kept inside or outside. There may be conditions to this coverage, though, such as taking reasonable steps to prevent the theft of the bike (like bike locks).
If you live in a property that includes insurance as part of your strata or body corporate payments, this will generally provide home insurance cover for any damage to your home’s physical structure. However, strata insurance won’t protect your contents or valuables, which is where you will need contents insurance.
However, if you own a unit without any strata insurance, you’ll need to purchase both home insurance and contents insurance. It’s best to check with the property manager to determine your pre-existing level of cover.