2022 Guide To Home Renters Insurance

June 30, 2022
home renters insurance

As a renter, it’s important to get protection for your belongings and yourself with home renters insurance. But what exactly is this insurance? And do you need it? What does such insurance cover? How much does it cost? 

Don’t worry; we’ve got all the answers to your pressing questions about home renters or contents insurance in Australia. So, read on to get a more profound knowledge of this topic.

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What is home renters insurance?

Home renters insurance is often exchangeably known as the contents insurance. It is a type of insurance that covers your personal belongings in the event that they are damaged or stolen. 

It can also provide liability coverage if someone is injured while on your property. This covers situations where you are hurt in your rental, even if the cause is not a structural issue. 

Your landlord is responsible for injuries caused by structural issues. Renter’s insurance covers a wide range of properties, including studios, one- and two-bedroom flats, entire houses, or mobile homes.

What is the difference between renters and contents insurance?

Contents insurance only covers your personal belongings and does not cover the physical structure of the home itself. Renters insurance, on the other hand, can protect your belongings and the physical structure depending on the policy. 

Should I get contents insurance for a rental?

If you’re renting a home, apartment, or even just a room, getting contents insurance is a good idea. Your landlord’s insurance policy most likely will not cover your personal belongings in the event of damages or theft. 

So, do you need renters insurance in Australia? The answer is yes; as a renter, you should have contents insurance to protect your belongings.

What does renters insurance protect against?

home renters insurance

Home renters insurance policies vary from company to company, but there are three basic criteria for any renters insurance. So, what are the three major parts of a renters insurance policy? These are explained below:

  1. Liability

This rental cover will protect you if someone is injured while on your property and decides to sue you. It also covers expenses in case you, your pets, or your family member cause damage to others. It covers any court judgments and legal fees up to the policy amount.

  1. Personal belongings

This will cover your belongings if they are damaged by vandalism, fire, theft, electrical malfunctions, plumbing, specific weather-related damage, and other hazards. This is true for both inside and outside of your home.

It also covers jewellery, art, collectibles, and computers. The amount of coverage varies depending on the policy. On the other hand, floods and earthquakes are not covered by this policy and must be paid for separately.

  1. Additional living expenses

If your home is destroyed, you definitely need to live elsewhere. If you get the insurance, it will cover the cost of additional living expenses. This includes bills like hotel stays, restaurant meals, and transportation in your home renters insurance. 

How much is contents insurance for renters in Australia?

The price can differ based on the size and location of your home, how much coverage you need, security features on your home, and the value of your belongings. It also depends on your history of insurance claims.

In general, the contents insurance for renters in the South Australia regions costs much less than in northern Queensland. However, there are three ways to get the best offer on your home renters insurance:

  • Prices differ significantly from one insurance to the next, so shop around. 
  • You may save money by selecting a higher excess. 
  • Consider installing deadbolts and keyed locks on all exterior windows and doors to persuade your owner to safeguard the house.

Do landlords have to have insurance?

Landlord insurance is a kind of insurance that protects landlords in the event their rental property is damaged or their tenants cause damage. It can cover the cost of repairs, replacement of lost rental income, and legal fees. 

Is it compulsory to get the landlord’s insurance? No. But most landlords are required to have this insurance by their mortgage lender. Even if it is not needed by your lender, it’s still a good idea to have it in case something happens to your rental property.

How often should you shop around for renters insurance?

home renters insurance

The best way to find the most affordable home renters insurance is to shop around and compare policies from different insurers. You should also review your insurance policy regularly to ensure it meets your needs. It’s a good idea to shop around for a new policy at least every few years.

What is the best way to estimate the worth of my belongings?

To be adequately insured, it’s critical to accurately calculate the total value of your belongings before acquiring a policy.

One approach is using an internet contents calculator like the Insurance Council of Australia. This calculator asks a series of detailed questions to provide a more accurate result. To streamline your assets, obtaining individual evaluations for more expensive goods is advisable. 

Make sure to keep a complete record of your belongings after you’ve purchased your insurance policy in case you need to claim later. Receipts, images, and estimates are some of the valuable things to keep a record of. You’ll need to run a thorough inventory of all your possessions in order to verify your losses and assist with your claim.

What is the procedure for renters insurance claims?

Your insurer may mend or replace your broken items if you make a successful claim, or they might give you the cost of doing so.

There is a clause for ‘new for old’ replacement on covered items. This covers the expense of replacing all your stuff with new ones.

Alternatively, some companies may give you the value of your lost or destroyed goods. The most significant distinction is that this takes into account what the item is worth at the time it is covered. For instance, a five-year-old television set would not be worth as much as a new one.

To help you buy a new TV, the ‘new for old’ policy will cover a considerable amount. This means you need to pay more for the insurance than the ‘value for replacement’ cover.

Always familiarize yourself with the home renters insurance policy’s terms and conditions, or contact your insurance to confirm which policy you’re investing in.

Is it possible to get renters insurance if I am a member of a shared household?

home renters insurance

You can’t choose which rooms to cover if you want to get a renter’s insurance. This means that you may not be able only to insure your room; instead, you’ll need to cover the whole house. Here you can opt for short-term rental insurance to save money.

You’ll need to determine what you’d want if your home mates offer their help. Depending on whether they want to chip in, you may include or exclude their belongings from the list of essential items.

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