It can be difficult to keep track of the value of the items we buy and accumulate over time. This leads many Australians to undervalue the average home contents value.
Rental
What is renters insurance and what can it help cover?
Learn what renters insurance is, what it can help cover, what's usually excluded, and why it's worth considering whether you rent a house, apartment or unit.
Renting a home doesn't mean you have nothing to protect. When accidents occur, having renters insurance can help alleviate the financial pressures of having to replace your possessions - or help with extra rent costs when an insured event has made your home unlivable.
"The unexpected, like fire and storm damage, can happen. And when it does happen to renters, they may discover that they're not covered by the landlord's insurance," explains Bill Bloodworth, General Manager Home Insurance at RACV.
"With people living in rental properties longer, they may find themselves owning more contents, and contents of greater value, as their lifestyles change and their families grow. This may leave them open to greater financial loss without adequate insurance coverage."
Understanding what renters insurance covers – and what it doesn't – can help you decide whether it's right for your circumstances.
What is renters insurance?
Renters insurance is a type of contents insurance designed for people who rent rather than own their home. It helps protect the belongings you keep inside your rental property, such as furniture, electronics, clothing and other personal possessions.
Unlike homeowners insurance, renters insurance doesn't cover the building itself. That's because the property owner is generally responsible for insuring the home, including its structure, permanent fixtures and fittings.
Instead, renters insurance focuses on the items you own and, depending on the policy, may also provide cover for legal liability if you accidentally cause injury to someone or damage their property.
What can renters insurance help cover?
Renters insurance helps cover contents losses due to insured events.
RACV Renters Insurance may help cover the following insured events if they impact your contents:
- theft - if your things are stolen during a break-in or there's damage caused by attempted theft
- flood^ - flood damage or loss caused by things like lakes, creeks, rivers, canals or dams
- fire - damage caused by fire (like a bushfire, kitchen fire or electric fire)
- storm - loss or damage caused by rain, hail, lightning, snow or wild winds
- impact damage - damage caused by fallen satellite dishes or aerials, or a car that's lost control
- earthquake and tsunami - loss or damage from an earthquake or tsunami; includes resulting landslide or subsidence that occurs within 72 hours
- water and oil leaks - sudden leaks from things like gutters, pipes, baths, toilets, appliances, fixed heaters and cooling systems
- explosion - loss or damage caused by an explosion from things like gas boilers or electronic devices
- animal damage - loss or damage from an animal that isn't kept on your property. Excludes vermin or insect damage, and bird pecks, scratches or bites.
Cover for general contents (your belongings)
Renters insurance provides cover for general contents - that is, your belongings inside your rental home. This could include clothes, furniture, rugs, TVs, fridges, washing machines, home office and sports equipment, tools, and more.
RACV Renters Insurance provides:
- new-for-old item replacement - if an item listed on your policy is stolen, damaged or destroyed after an insured event, and if it can be replaced.
- up to $500 for spoiled food or prescription medicine - following an event that we insure, if the event interrupts your electricity supply, you'll get up to $500 to replace spoiled food and prescription medicine in your fridge or freezer.
- cover when you're moving house in Australia - your existing policy will continue to cover your contents for up to 2 weeks while you're moving, in both your current and new houses.‡
You can choose to add increased cover for any valuables category (e.g. jewellery and watches; art; music, games and movies; or collections like stamps, coins or cards) if you want more than $2,500 cover for any valuables category.
More: Valuable items cover - how to insure precious items with contents insurance
Temporary accommodation
If an insured event damages or destroys your rental home so that it is no longer safe or fit to live in, renters insurance can help cover costs for temporary accommodation while your rental home is repaired or while you find another rental property.
For example, RACV Renters Insurance provides reasonable extra rent costs for temporary accommodation for up to a year if your home is unliveable after an insured event. It also covers family and pets that permanently live with you.
"Trying to find temporary accommodation after an insured event can be particularly difficult for renters who have young families or pets," says Bloodworth.
Personal liability
Many renters insurance policies include legal liability cover. This may help if you're found legally liable for accidentally injuring another person or damaging someone else's property. For example, it could assist if you are riding your bicycle on a road and cause an accident.
RACV Renters Insurance provides up to $20 million in liability cover for claims against you and your family for death or injury to others, or damage to others' property while away from your home, but in Australia.
Always check any limits, exclusions and conditions that apply.
Renters insurance is contents insurance designed for people who rent rather than own their home.
What isn't usually covered by renters insurance?
Like all insurance policies, renters insurance includes exclusions that vary between insurers.
Some examples of what's not covered by RACV Renters Insurance include:
- intentional loss or damage caused by you, someone you live with or someone you've allowed into your home
- structures like your home, garage, carport or fences, and permanent fixtures like light fittings, built-in wardrobes, cupboards or floorboards.
- stock used in any business, trade or profession.
- plants, trees or shrubs growing in the ground, and grass, rocks or soil.
- motor vehicles, trailers, caravans and certain watercraft.
- rust, corrosion, gradual deterioration, depreciation, or wear and tear.
Policies also have excesses, benefit limits and conditions that determine when claims can be made. Reading the Product Disclosure Statement (PDS) before purchasing a policy can help you understand exactly what's covered.
Does renters insurance cover items outside your home?
Standard renters insurance is generally designed to cover belongings kept at your insured address.
With RACV Renters Insurance, you can add optional Portable Items cover to protect belongings you take outside your home, such as phones, cameras, laptops, watches or jewellery. This helps cover your portable items if they're lost, stolen or unintentionally damaged outside the home.
More: How to insure portable items that leave the home
Does renters insurance cover accidental damage?
Renters insurance generally does not cover accidental damage to your belongings.
With RACV Renters Insurance, you can choose to add on accidental damage cover to your renters insurance, which adds cover for accidental damage to your belongings caused by you, someone you're living with, or a guest.
An example of accidental damage could be accidentally knocking over your TV.
Renters insurance can help cover damaged or destroyed belongings in your rental home. Image: Getty
What are the benefits to renters insurance?
Many renters underestimate how much it would cost to replace everything they own.
Take a moment to mentally add up the value of your belongings, including all furniture, electronics, white goods, sporting equipment, clothing, bedding, and so on. Even a modest rental property can contain tens of thousands of dollars' worth of belongings.
Replacing everything after a fire, burglary or major storm could place significant financial pressure on many households. Renters insurance may provide valuable financial protection if the unexpected happens.
How much renters insurance do you need?
One of the most common mistakes is underestimating the value of your contents.
Before taking out a policy:
- walk through each room and list your belongings.
- estimate what it would cost to buy everything new today.
- don't forget items stored in wardrobes, cupboards, garages or storage cages.
- include electronics, sporting equipment, jewellery and appliances.
- update your insured amount if you make major purchases.
Many insurers offer online contents calculators to help estimate the replacement value of your belongings.
Can you get renters insurance if you live with housemates?
Yes, you can still get renters insurance if you live with housemates. You could take out one policy to cover everyone's contents, or take out your own policy with just your contents.
Only the people listed on the policy will have their belongings covered – so if you're getting insurance as a group, make sure anyone who wants cover adds their name to the policy.
"Unexpected events such as fire or flooding can often impact the contents of an entire share house, so it's prudent to ensure that all housemates are covered," says Bloodworth.
"Those living in shared rental accommodation can choose to take out a RACV Renters Insurance policy which protects the contents of all residents, when all residents are listed on the policy, and then split the cost just like any other bill."
Tips for choosing renters insurance
Not all renters insurance policies are the same. Before choosing cover, consider:
- whether the insured amount is enough to replace all your belongings.
- which insured events are covered.
- whether accidental damage cover is included or available as an optional extra.
- if valuables such as jewellery or bicycles have sub-limits.
- whether you need cover for belongings outside your home.
- the excess you'll need to pay if you make a claim.
- any exclusions or waiting periods that may apply.
Choosing the right level of cover can help ensure you're protected without paying for features you don't need.
Consider whether renters insurance is right for you, and whether you'd like to include all housemates on one policy.
Renters insurance FAQs
Generally, no. A landlord's insurance usually covers the building and, if applicable, fixtures they own. Your personal belongings are typically your responsibility.
No. Renters insurance isn't legally required in Australia, but many renters choose it to help protect their possessions against unexpected loss or damage.
Some policies include accidental damage as standard, while others offer it as an optional extra. Always check your policy to understand what's included.
Yes, many insurers allow you to specify valuable items separately if they exceed standard policy limits.
If your belongings are damaged or stolen, contact your insurer as soon as possible. You'll usually need details about what happened, evidence of ownership (such as receipts or photos), and, for theft claims, a police report.
‡ Cover available if your contents are currently insured with RACV Renters Insurance. You must provide the details of your permanent home within 14 days from when you start moving and pay any additional premium.
^ Unless you have chosen to remove flood, rainwater run-off or storm surge cover (if that option was offered to you). Other exclusions apply including that damage caused by actions of the sea is not covered.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
