The Importance of Contents Insurance for Tenants

Often, with the stress of looking for a new rental property, packing/unpacking and settling in, insurance is the last thing on your mind.

We would like to stress how important it is for tenants to have contents insurance. It can go a long way with protecting your belongings and providing peace of mind.

The first thing to understand, is that building insurance is the responsibility of the landlord. If any damage such as a natural disaster, a fire or issues completely out of your control occur, the responsibility falls to the owner and their insurer to arrange and cover the cost of repairs.

However, in each of the above circumstances your possessions are not covered. The landlords insurance does not cover your possessions.

The Australian Bureau of Statistics estimates 23 per cent of Australian households do not have contents insurance. Most contents insurance policies are very reasonable and can be paid monthly, annually. If you live with housemates, the cost is even cheaper if you divide the whole policy.

Insurance policies usually place a maximum claim amount per item, so check the policy to understand if you are adequately covered. If you own an expensive possession such as a piece of jewellery or bike, specifically identifying it in your policy will ensure you are compensated to the full amount of the item’s value.

Three things we advise checking the print for:

– How much is the excess?
– Are items that are stored separately to the house/apartment itself (garage, storage cage) covered?
– Does your policy cover portal items (mobile phones, jewellery, cameras out of the home? Even overseas?

If you do have a current policy, we recommend taking the opportunity to read the fine print to know what you are and are not covered for. It is always a good idea to shop around when your policy is nearing an end, as you may be able to secure a better deal from a competitor.

Please feel free to contact us at Living Here South Yarra if you would like any more information on (03) 98261399.