Written by Kirk Wallace
Reviewed by Adrian Taylor
Last updated 26/09/23
Understanding the insurance you need as a renter in Australia can be confusing and there are some important things to remember:
While your landlords insurance covers your rental home, your belongings, furniture and appliances aren’t included. By taking out contents insurance, you can:
When it comes to choosing the right content insurance policy as a renter, you’ll need to consider:
You should also keep in mind that contents cover can vary between insurers, so you should always read the Product Disclosure Statement (PDS) for the full details of an insurance policy before you purchase and your insurer’s Target Market Determination (TMD) to check if the policy is suitable for you. Some events that are commonly covered by renters insurance can include:
Compare the Market’s home and contents insurance expert, Stephen Zeller, has the following tips for renters looking to insure their belongings:
A renters insurance policy can cover a variety of belongings that you bring into your rental home, including:
Keep in mind that different insurers may cover different things, so be sure to read your PDS carefully to know exactly what’s covered by your policy. You should also take a look at the limits and sub-limits of your cover (i.e. the maximum amount your insurer may pay you).
Insurance can’t cover everything, so make sure you check the exclusions of your renters’ contents insurance policy. These can vary between insurers, but some common exclusions are:
Your contents insurance claim can also be denied if you failed to disclose important information when you signed up for the policy, like your true address or your previous claims history. This is why it’s important not only to be upfront and honest when taking out insurance, but also to update your policy when your circumstances and details change.
The cost of renters’ contents insurance varies across customers and policies because insurers look at a variety of factors when determining your premium. It’s important to remember not every policy provides the same level of cover, and not everyone’s belongings are worth the same amount.
When you take out a contents-only policy, the cost of your insurance may be affected by a range of factors, such as:
Contents insurance can bring you financial peace of mind as belongings under the roof of your rental can be safeguarded against loss or damage caused by accidents or any other insured event.
There are additional benefits as well. Some insurers will also pay for temporarily storing undamaged contents if it isn’t safe to keep them at the rental property after it’s been damaged by events like fire or a flood.
It always pays to confirm all the inclusions and exclusions within your insurance policy’s Product Disclosure Statement (PDS) to make sure the policy is a good fit for your situation.
No, renters don’t need to take out home insurance for their rental home as this is the responsibility of the homeowner – in this case, the landlord. As a renter, you only need to take care of your belongings inside the rental home, which contents insurance can help you with.
As a tenant, you are responsible for any damage or breakages you, household members or visitors may cause, and the cost to replace and/or repair will fall to you (this doesn’t include wear and tear to a property). As a tenant, you might want to consider accidental damage as an optional cover on your contents policy. It’s typically available for an additional premium, although some insurers may offer this as standard within their contents cover.
If you’re renting a home, you’re responsible for damage you cause to the property, such as scratches on the wall, broken windows or chipped basins. On a broader level, you’re also responsible for insuring the belongings you bring into the home, as your landlord’s home insurance won’t cover these.
As the home and contents insurance expert at Compare the Market, Stephen Zeller works to make the protection of a homeowner’s most significant financial assets an easier and more efficient process. Stephen empowers people with choice and believes it’s important to have adequate cover in the event of the unexpected – fire, flood, storm or vandalism.
Stephen has more than 30 years of experience in the financial services industry. He is an Allied member of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and ensures any information about insurance products that we publish is accurate and comprehensive.
