What is renters insurance and do I need it?

By AAMI 30 August 2021

Renters insurance is a way for you to insure your stuff if you’re a tenant — without paying for insurance for the house itself, as your landlord probably has that covered. You may not think you have much stuff to insure, but think again! A laptop, smartphone, and TV can quickly add up and that’s a lot to lose if an uninvited guest comes-a-knockin’.

Renters insurance doesn’t just cover your stuff if it is stolen or you suffer from loss or damage in an insured event. If you purchase the optional cover for accidental damage at home, it could help you cover the cost of repairing or replacing your belongings if they’re accidentally lost or damaged at home¹. Think Saturday night Twister gone wrong or, polished floorboards that become an ice-skating rink after one or two cocktails. Along with loss of, or damage to, your household items in an insured event, renters insurance can also cover your legal liability for injury or property damage to other people.

So, if you’ve ever asked yourself whether you need some sort of renters insurance, the answer is probably yes.

Whether you’re renting for the first time, or a seasoned expert,

we’ve all got some stories to tell.

From the housemate that hoarded all the cutlery,

to the one that kept stealing all the milk.

The partner who came home to find storm damage to their window,

and the other that accidentally broke the Wii remote bowling during lockdowns.

No Kevin, those steps don’t count.

The friends who helped you move… again

(but then dropped your washing machine down the stairs)

and the constant plus ones that your roommate kept bringing over…

even when they kept eating all of your snacks.

All the way to the landlord who helped to fix the roof when it leaked

but couldn’t help you fix your soaked laptop.

Here at AAMI, we may not be able to fix your housemates,

but we can help cover your contents.

That’s why we have AAMI Contents Insurance and Optional Extras cover,

because even if your landlord can help organise to fix maintenance and repairs at home –

it may be up to you to keep your belongings secure in the event that they are damaged.

What are the insurance options for renters?

There are plenty of options for covering what’s yours – and not pay extra to insure the building. You’ll usually want a contents only insurance policy, though even those can be difficult to narrow down.

AAMI has two contents insurance options that renters can choose from. If you want to insure your belongings but you’re on a budget, consider our Fire and Theft Contents Insurance. For cover for a broader range of events, such as storms, Home Contents Insurance is our highest level of cover for renters.

What does AAMI Renters Insurance cover?

AAMI Fire and Theft Contents Insurance

AAMI’s Fire and Theft Contents Insurance is a low-cost option for renters. It covers up to $25,000 in damage or loss to your household belongings, caused by theft or fire (including bushfire). We offer ‘new for old’ replacement – meaning we’ll replace your things with equivalent new items, or similar if the exact type isn’t available.

Explore Home Contents Insurance

AAMI Home Contents Insurance

With AAMI’s Home Contents Insurance, you can get a more comprehensive level of cover for accidental loss or damage to your contents, with optional covers to increase your protection. For example, let’s say you have valuable items you often take with you on the go, such as a smart watch. You could add these items as either specified or unspecified portable valuables items. to be covered outside the home as an Optional Cover for an additional premium, on top of your contents insurance.

With eligible unspecified portable items, we pay up to $1,000 per item.
We pay a maximum of $5,000 for a group of items.
Certain items, such as your mobile phone or tablet, may need to be specified to be covered under the optional portable valuables cover.
Some items, like watches, handbags or sunglasses, can remain unspecified and still be covered for up to $1,000 per item.
Other portable items, including mobile phones and tablets or items you want covered for more than $1,000, need to be specified for an extra premium. That is, you need to tell us about those items at the time of commencing or renewing your policy, and they need to be individually listed on your certificate of insurance. For more details, check out the Product Disclosure Statement (PDS).

Can I get Renters Insurance if I live in a house with housemates?

Unfortunately, you can’t take out contents insurance to cover specific rooms in a house – you can only insure the entire household. You are able to insure your contents in the name of more than one person, they would all be joint policyholders and named on the certificate of insurance. So, if your housemates are happy to chip in, you could include their items in the optional portable valuables cover and divide the cost.

Get a Home Insurance quote

What isn't covered by contents insurance for Renters?

Since insurance for tenants is contents only, it doesn’t include building insurance. Combined Home and Contents Insurance covers the house, including permanent fixtures, whereas contents insurance only covers your household goods and personal belongings. Sometimes, depending on your state’s law, this might also include fittings in a unit that aren’t legally part of the building – such as fixtures you own yourself and will take with you when you leave.

That’s why it’s a suitable option for people renting – you’re just paying to cover your things. Find the right level of coverage to suit your needs and get an online quote now.

¹This may be covered by an optional cover accidental damage at home. Terms and conditions apply. Please read the PDS for more information.

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. The Target Market Determination (TMD) is also available. 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. The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.