Do I need insurance while living in a rental property?
Tenants insurance costs from $1.00 per day and is worth every cent for the peace of mind it provides.
When you are renting, the owner of the property you are living in is responsible for damage or loss to the building and fittings, but you are responsible for your own possessions, ie your clothes, furniture, electrical goods and other valuable belongings.
When a disaster occurs, tenants are often the ones to lose everything and miss out on compensation.
Tenants insurance is a form of contents cover specifically designed for people living in rental properties. It protects against financial loss from specific risks such as fire or burglary, or against accidental loss or damage. It can also cover you for accidental damage to fixtures and fittings of the property that you are renting, or provide financial cover for legal liability. It may also cover your possessions when you move between properties, but it is recommended that you check the terms of your policy before assuming this is covered.
Be careful to make sure that the policy covers everything you need. Don't be fooled by low-cost contents-only insurance policies. These may provide little more coverage than to protect your possessions against fire and theft.
As tenants insurance can be quite limited in its cover, it is important to understand your policy to make sure you are not underinsured – that is, that your insurance covers the replacement cost of all of your possessions.
As with all contents policies, large-value items – such as expensive jewellery or artwork – should be specifically added to your inclusions or insured separately, which can raise the cost of your insurance.