Whether you’re an owner or a tenant, we’re all vulnerable to unpredictable events that can damage or destroy our possessions. Freak weather events or opportunistic thefts can mean you lose access to many of your most prized possessions even when you think they are safe in your home. This is why the right insurance policy can be a real lifesaver!
If you’ve started to explore your options, you’ve probably come across two terms–contents insurance and renters insurance. Although they both sound similar, it’s very important to understand their many subtle differences.
Let’s dive into what these types of insurance really are, and which is the best one for you!
What is Content Insurance?
To put it simply, a contents insurance policy covers the contents of your home, meaning anything that isn’t affixed permanently to the property itself. These are the objects you bring with you when you move in or buy as you live there, and can include things like:
Typically Included:
- > Large appliances such as refrigerators and freezers, dishwashers, washing machines and dryers, and smaller appliances like toasters, kettles, rice cookers, jaffle makers and air fryers.
- > Materials like curtains, rugs, carpets, clothes, bedsheets and towels.
- > Electrical items such as computers, televisions and large game consoles.
- > Furniture like couches, beds, tables, chairs, stools and ottomans.
Not Usually Included:
Depending on the particular contents policy you are looking at, certain types of objects may or may not be covered. You may need to take out an extras policy to keep them safe! These can include:
- > Jewellery and watches (not including stones lost from individual pieces of jewellery).
- > Artwork (both paintings and prints), sculptures and displays.
- > Portable personal items like phones, laptops, handheld gaming systems, glasses and cameras.
External Property Damage
Many contents policies will not cover damage or losses of features attached to the property, such as:
- > Trees, shrubs, and other vegetation growing in the ground (potted plants may be an exemption).
- > Doors and drawers.
- > Light fittings and fixtures.
- > Larger towable possessions like caravans, trailers, carts and campers.
Your content insurer will either offer to replace the damaged, stolen or lost object for you (often called ‘new for old’ cover) or will cover the cost of what it would take to replace the object at the time at which it is insured. This last part is important–keep this in mind if the value of your insured possession is going to change over time!
What events can contents insurance protect me from?
A good-quality contents insurance will cover your belongings from a defined set of insured events. These will usually include:
- > Extreme weather events like fires, floods and storms. If you live in an area more prone to these natural disasters, then your insurance may cost you more.
- > Vandalism and burglaries. Again, living in a suburb with a high rate of crime may make your insurance more pricey. Be aware that a theft that has occurred due to negligence on your part may not be covered at all.
Most insurance policies will NOT cover you for purposeful and malicious damage (like someone punching a hole in your wall). However, accidental damage, like dropping a computer or knocking over a vase, is the type of damage that can sometimes be covered by the right optional extra.
Many contents insurance policies will also make you choose an optional extra for portable items, like your camera or phone. This can often be worth it though, as it covers you if these are lost or stolen outside of the home, whether you’re at the shops or overseas on a holiday!
What about home insurance?
This is the insurance you’ll need to protect your home and all its fixtures, such as walls, doors, windows, plumbing, gas and electrical systems. In the case where your home is completely destroyed, the right home insurance can cover the cost to rebuild; however, it won’t cover the cost of your belongings inside.
That’s why many insurers allow you to bundle your home and content insurance together! This way, your entire property is protected in case of emergency, and these will often be cheaper than taking out two separate home and content policies.
At We Do Property, we make investment and leasing easier than ever for clients across the Sunshine Coast. If you need any guidance on insurance, property maintenance, or rental compliance laws in Queensland, call us today!
We have real estate agents in Minyma, Buderim, Golden Beach, Mooloolaba and all the surrounding areas.
What is Contents Insurance for Renters?
Contents insurance for renters can be an excellent investment for tenants. Although the landlord is responsible for property maintenance and any matters related to body corporate, it’s ultimately up to you to protect any personal belongings.
Much like owner’s content insurance, a contents insurance for renters insurance policy will make sure your personal possessions are safe in case of any accidents or unforeseen circumstances.
Applying for a Contents Insurance for Renters Policy
If you’ve decided to apply for contents insurance for renters, start by calculating the cost of everything you want to insure. This can be tricky for larger, more expensive buys, so make sure to keep receipts of important purchases that accurately reflect their value.
Be aware that your insurance will only cover things like carpets, curtains, and appliances that you have brought into the property. Those supplied by the landlord will not be covered by your policy. Again, certain policies will not always insure you against theft if you have left your windows and doors unlocked, or if you left your keys in the door when you exited the building, even if the main security door itself still locks on your way out.
Note: Some rental policies will have accidental damage insurance included, so be sure to look for this feature if you’d like to have this safety net included.
FAQs About Content and Renters Insurance
- Should I get content or renters insurance?
Do you own the property you are living in? Contents insurance, or combined home and contents insurance, is your best bet for complete protection for your home itself and everything inside it.
Are you renting the space you live in? Look for content insurance for renters with the extras you need for peace of mind. Your landlord will insure the property itself.
Are you a landlord who needs to insure a property you aren’t living in? Look into specialised landlord content or landlord building insurance–or a combination of both!
- Do renters need to pay home and contents insurance?
If you are renting a house, unit or apartment, you will not need to pay home or building insurance. Your landlord should take care of this. However, insuring your personal possessions is up to you and can be done through a renter’s insurance policy.
Be aware that content insurance for renters will not cover anything not owned by you, like if your landlord has provided the carpets, curtains and dishwasher in your home.
- What is a reasonable amount for contents or renters insurance?
The amount of money that is best to pay for your insurance will depend on how many people are living in your home and how long you have been living there–you’d be surprised how much you will accumulate over the years!
If you have expensive electronics (TVs, computers, gaming setups), an outdoor work shed (full of power tools, hand tools and sports equipment) or camping equipment (camping equipment, portable cooking appliances and fridges, water sports gear), the price you’d need to replace everything will quickly add up. Be careful not to underinsure your contents!
You can use an insurance calculator to see what your insurance costs may be, but be aware these may not always be accurate and, depending on the company, may lead you towards a policy more favourable for them than for you!
Are you searching for trustworthy rental agents in Caloundra, Baringa, Buderim or Britinya? We Do Property is here to make your investment experience as smooth and stress-free as possible.
Questions About Owning, Buying or Selling? We Do Property Can Help!
Whether you’re renting, leasing or looking to build your property portfolio, a professional property manager can make the entire experience so much easier for everyone involved. At We Do Property, our team also has extensive knowledge of local laws and real estate compliance in Queensland.
Landlords can reach out to us on 07 5337 6495 or use our online form to leave us a message regarding their needs. Whether you are buying your second property or looking to increase your existing portfolio, we can help!
