Guide to renters insurance
How contents insurance can cover your belongings in your rental home
Kochie’s top tips for renters purchasing insurance
Don’t miss what David Koch has to say about renters insurance.
David Koch
Economic Director
Video Transcript
Just because you’re renting doesn’t mean it isn’t important to protect your belongings! Because as much as we try to minimise the risk of theft and damage, sometimes life has other plans. Renters insurance – also known as contents-only insurance – is a financial safety net that can help repair, replace or pay out the value of your lost belongings. If you’re shopping around for a policy, Compare the Market has these tips. First check for inclusions.
Things like accidental damage to your property or portable contents like your phone may be offered as an optional extra but not included automatically. Don’t underestimate the value of your belongings. Take the time to look through your contents and make a reasonable assessment of the value of your belongings to ensure you have sufficient cover. Keep a record of your valuables. These might include photos, videos or receipts.
Having some evidence on hand can be super helpful if you ever need to make a claim. And always compare your options! It’s the best way to make sure you’re getting value for money while looking for a policy that meets your needs. So, protect your belongings and start your journey today, with Compare the Market.
What is renters insurance?
Renters insurance, often called contents insurance, helps protect the belongings you’ve built up over time from unexpected events such as fire, theft, storms and any accidental damage (if included in your policy).
Because as a renter you don’t own the property, you generally don’t need home building insurance. However, you may still be responsible for your personal belongings, as well as certain furnishings and appliances provided by the landlord that you’re legally responsible for under your lease if they’re damaged and you’re found liable.
Many tenants assume their landlord’s insurance will cover the contents if damage occurs at the rental property, but this isn’t usually the case. Landlord insurance is designed to protect the property owner, their building and landlord-owned items, such as carpets, blinds and appliances supplied with the property. It doesn’t generally cover a tenant’s personal belongings or any contractual obligations the tenant may have under the lease. For example, you may still be responsible if you accidentally burn a carpet or damage built-in fixtures such as wardrobes, dishwashers or cooktops.
If your policy includes legal liability cover, it may also help cover your liability for damage to the landlord’s property, including fitted carpets, furnishings and built-in fixtures.
Always read the Product Disclosure Statement (PDS) to understand exactly what’s covered and excluded under your policy.
Why take out renters insurance?
While your landlord’s insurance is responsible for insuring the building, their policy typically won’t cover your personal belongings. That means if your furniture, clothing, electronics or other valuables are damaged or stolen, you’ll likely need your own contents insurance to help cover the cost of repair or replacement. Replacing these everyday items can cost far more than most people expect.
In fact, the cost of replacing household contents has increased by more than 16% since 2020 and 36% since 2007, meaning common items such as sofas, beds, dining tables, TVs, computers, refrigerators and washing machines are now more expensive to replace than they were just a few years ago. Given that, a typical Australian family home can contain anywhere from about $80,000 to $500,000 worth of contents, depending on the size of the household and the belongings inside it, waiting until after a loss occurs could leave you facing a much larger bill to replace your belongings.
Taking out contents insurance early can provide valuable financial protection against these rising replacement costs. So, if your sum insured hasn’t been reviewed in a while, it may be worth comparing the latest contents insurance quotes to see if your cover still matches the current value of your belongings.
Choosing cover as a renter
Choosing contents insurance as a renter starts with working out what your belongings are worth and how much it would cost to replace them. As you weigh up your options, you’ll want to consider:
- Your sum insured. This is the value of your insured belongings if you had to replace them with new items after an insured event. When setting your sum insured, be careful not to select too low a figure, as you could end up underinsured and may have to foot some replacement costs yourself.
- Optional extras. You may have the choice of optional extras to add to your renter’s insurance for extended coverage (and an additional premium). Some optional extras you may add to your policy include portable contents cover (also known as ‘personal effects cover’), specified contents cover and accidental damage cover.
- Policy excess. The excess is the amount you typically pay towards a contents insurance claim, and you may be able to choose this amount when you take out a policy.
Expert insurance tips for renters
Compare the Market’s home and contents insurance expert, Adrian Taylor, has the following tips for renters looking to insure their belongings:
Adrian Taylor
Chief Executive – General Insurance
Make a reasonable assessment
It’s easy to underestimate the value of all the contents in your home, so take the time to look through and make a reasonable assessment of what your policy limit should be. If you can, take photos or videos of your possessions as evidence and keep them in a safe place.
You can switch anytime
You don’t have to wait for your policy’s renewal date to save on your insurance. You can cancel your existing policy at any time and switch insurers.
Don't rule out smaller brands
Don’t dismiss the lesser-known or smaller insurance brands. These insurers are often backed by well-known underwriters, so you have peace of mind knowing you’re in safe hands. Plus, their policies could be cheaper than the major insurers!
How contents insurance for renters works
Renters contents insurance helps pay to repair or replace your belongings if they’re damaged, lost or stolen due to an insured event. You pay an ongoing premium and, if you make a successful claim, your insurer may cover the cost of repairing or replacing your insured items up to your policy limits.
You’ll generally need to explain what happened and provide supporting information, such as photos, receipts or proof of ownership.
If your rental property becomes unliveable following an insured event, some contents insurance policies may also provide temporary accommodation cover. If this benefit is available, check the policy terms carefully, including any limits, waiting periods and the length of time cover applies. Some insurers may cap temporary accommodation payments at a percentage of your total sum insured.
Guidance from tenant bodies reviewed by Compare the Market suggests renters can also make the claims process easier by:
- Keeping a record of their belongings: Photos, receipts and serial numbers can help prove ownership and support a claim. It’s also worth updating your inventory and sum insured as you acquire new possessions.
- Documenting any damage: If an incident occurs, take photos, videos and notes as soon as it is safe to do so. This can help support your insurance claim and clarify any issues relating to the rental property.
What does renters insurance cover?
Renters insurance covers the cost of repairing or replacing your personal items if they’re lost, damaged or stolen due to an insured event. Many policies may also include legal liability cover and temporary accommodation benefits.
Some events that are commonly covered by renters insurance include:
- fires
- theft
- storm damage
- floods (sometimes offered as an optional extra)
- damage from fallen trees
- impacts and explosions
- earthquakes and tsunamis
- malicious damage and vandalism
- debris removal and temporary accommodation
- legal liability.
You should also keep in mind that contents cover can vary between insurers. Always read the relevant Product Disclosure Statement (PDS) for the full details of an insurance policy before you purchase it. It’s also worth checking your insurer’s Target Market Determination (TMD) to see if the policy is suitable for you.
What items are covered by renters insurance?
A renters insurance policy covers personal belongings such as appliances and furniture, as well as some fixtures you own in your rental home, including:
- clothing and jewellery
- furniture
- internal curtains or blinds, carpets, floor or wall coverings (that belong to you)
- electronics (e.g. laptops, televisions) and toys
- household electrical appliances and whitegoods
- artwork, décor and valuable collections
- tools of trade (e.g. musical instruments, power tools)
- above-ground, inflatable and portable swimming pools and spas
- garden equipment, mowing appliances and household tools
- potted plants.
Keep in mind that different insurers may cover different items, so be sure to read your PDS carefully to know exactly what’s covered by your policy. You should also look at the limits and sub-limits of your cover (i.e. the maximum amount your insurer may pay you).
What isn’t covered by renters insurance?
Renters insurance generally doesn’t cover the building structure, damage from general wear and tear, or your motor vehicles.
While exclusions vary between insurers, the ones commonly excluded are:
- gradual wear and tear
- damage caused by termites and pests
- business activity conducted from home
- illegal acts
- damage to electrical motors (unless covered by a motor burnout add-on)
- motor vehicles (cars, motorcycles). You’ll need a separate car insurance policy for that.
Your contents insurance claim can also be denied if you failed to disclose important information when you signed up for the policy, such as 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 to also update your policy when your circumstances and details change.
How much is contents insurance for renters?
The average indicative cost for contents insurance is $445, according to premiums paid by customers who purchased contents insurance through Compare the Market.1 However, there’s no set price for contents insurance. The premium you pay will depend on the replacement value of your belongings, your suburb’s risk and the excess level you choose.
Some of the main factors that can affect the cost of renters insurance include:
- The value of your belongings. Your policy’s sum insured (i.e. how much you’ve insured your belongings for) will be a factor in how much you pay for insurance. When you set your sum insured, you should ensure that it’s as accurate as possible to reflect the potential replacement costs of your possessions.
- Whether your suburb is a risk zone. Many Australian homes are vulnerable to various natural disasters such as floods, bushfires, cyclones, storm surges and erosion (including sinkholes). If you’re renting in a hazard-prone area, this risk will reflect in your insurance cost.
- Your suburb’s crime rate. While the area you’re renting in might seem safe and quiet, the statistics might offer a different story. The higher the crime rate, the more your insurance policy will likely cost.
It’s important to remember not every policy provides the same level of cover, and not everyone’s belongings are worth the same amount. It always pays to confirm the full list of inclusions and exclusions within your insurance policy’s PDS to make sure the policy is a good fit for your situation.
Why is contents insurance important for renters?
Contents insurance helps pay to repair or replace your personal belongings if they’re lost or damaged by an insured event, as your landlord insurance generally won’t. Depending on the policy, it may also help cover temporary accommodation if the rental becomes uninhabitable or protect portable items such as laptops and phones when they’re taken outside the home. 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 such as fire or a flood.
What are renters responsible for?
If you’re renting a home, you’re generally responsible for damage caused by you, members of your household or your visitors. This could include broken windows, chipped basins or marks on walls that go beyond fair wear and tear.
You’re also responsible for insuring the belongings you bring into the property, as your landlord’s building insurance generally won’t cover your furniture, appliances, clothing or other personal items.
Do renters need home building insurance?
No, renters generally don’t need to take out home building 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.
Are tenants liable for accidental damage?
Yes, tenants are generally responsible for accidental damage they cause to a rental property. This is different from fair wear and tear, which is generally the landlord’s responsibility. For example, a tenant may have to pay for repairs if they accidentally break a window or damage flooring.
A landlord’s insurance may cover damage to the building, but the landlord or their insurer could seek to recover the repair costs from the tenant if the tenant was found responsible.
If you’re renting, 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 a standard benefit in their contents cover.
Meet our home and contents expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor works to make it easier for homeowners, renters and landlords to protect their home and contents. He believes it’s important for all residents (whether they rent, own or lease) to have adequate financial cover for their property and belongings in case the worse should happen.
Want to know more about home and contents insurance?
1 Average premium figure represents the average annual premium paid by customers who compared and purchased a contents-only policy through Compare the Market during the period 1 July 2025 to 30 June 2026. Premium data includes indicative stamp duty and GST where applicable. Premiums have been rounded to the nearest dollar.