Guide to Home Insurance for renters
Why do I need Home Insurance?
If you’re renting your home, you probably don’t need insurance for the building; presumably your landlord has that sorted.
But you’ll want to think about Home Insurance for renters. That means insuring the things inside the building. That is, all your belongings—the stuff you brought with you when you moved in, and that you’ll take with you when you leave.
How boring would Friday movie night be if you didn’t have a TV? How limited would your dinner options be without a fridge? How cold (and awkward) would your morning walk to work be if you didn’t have any clothes? Contents insurance covers all these things.
Are there different levels of Contents Insurance?
Yep! AAMI offers two different levels of Contents Insurance—Home Contents Insurance, and Fire and Theft Contents Insurance.
Both will insure the contents of your home— “contents” being household items that aren’t permanently attached to the building, like furniture, clothes, and old arcade machines that you picked up for a bargain online but don’t really fit anywhere—in the event of burglary or fire.
What’s the difference?
Fire and Theft Contents Insurance is our basic, low-cost cover, while Home Contents Insurance offers a higher level of cover.
Fire and Theft Contents Insurance will cover damage or loss up to $25,000, while Home Contents Insurance provides cover up to your chosen sum insured (that’s the total amount you choose to insure your contents for, and the maximum we’ll pay to repair or replace them).
Unlike Fire and Theft Contents Insurance, Home Contents Insurance will cover damage or loss caused by events such as flood, storms, bushfire and earthquakes. If you’re willing to pay a bit extra, Home Contents Insurance also offers a few optional extras, like cover for high-value items such as jewellery and art, and extra cover for portable valuables.
What’s extra cover for portable valuables?
Portable Valuables Cover lets you add cover for portable items that you might remove from your house, like handbags or mobile phones—so if you’re one of those people who can’t go a month without cracking your phone screen, Home Contents Insurance with Portable Valuables Cover might be right for you.
Some items, like watches, handbags or sunglasses, can remain unspecified and still be covered. Others, including high-risk items like mobile phones or anything valued at over $1,000, need to be specified. That is, you need to mention them to us at the time of commencing or renewing your policy, and they need to be individually listed on your certificate of insurance. For more detail, check out the Product Disclosure Statement (PDS).
So, how do I choose what level of cover to get?
If you’re after basic renters insurance cover on a budget, consider Fire and Theft Contents Insurance. If you have a few extra bucks to spend and want to beef up your coverage, or think the optional extras might come in handy, give some thought to Home Contents insurance.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Consider the Product Disclosure statement before making a decision about this insurance. Contact us for a copy. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.