Do I Need Renters Insurance?

Hi Scott,

I am a renter, and recently my new property agent mentioned contents insurance. I understand that the building is covered by the landlord, but I have never bothered with contents insurance before. I just had a quick google and it is a minefield! There is ‘contents insurance’, then there is ‘renters contents insurance’ ‒ I have no idea what the difference is and which one I should be looking at. Any advice?

Mardi

Hi Mardi,

Just so we’re clear, renters insurance (which is the same as contents insurance, just for renters) covers your personal contents at your property, and usually with an option to cover your personal effects when you’re out and about, whereas landlords insurance covers the building structure itself.

I did a few online comparisons for budget renters insurance, and the cost for insuring $20,000 worth of contents against fire, flood and theft ranged from $150 to $300 per year (though it may be different based on your own situation and what you want covered).

If you’re in a share house it gets a little trickier (you can’t insure individual rooms), but some policies allow you to detail the items you want to cover. If all your flatmates have expensive stuff like a laptops, fancy cameras, phones and jewellery, it may be worth you all chipping in for it.

Bottom line?

If you’re most expensive possession is a Bob Marley bong, perhaps you can pass on it. Otherwise, add up the cost of replacing everything and then run the sums.

Scott