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Home insurance for renters: do you really need it?
Think of renters insurance — another way of referring to our Contents Only Insurance (which we have two types of cover!), since it’s popular with renters — as a way to protect your stuff. Along with loss of or damage to your household items in an insured event, it 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.
Why consider home insurance for renters?
From serious break-ins to a house fire — if you have to replace your stuff in a hurry, it can be stressful. You may think you don’t have anything worth covering, but you’re probably forgetting about a few key items, like your laptop, bike, and furniture. And do you really want to go a day longer than you have to without your coffee machine?
Imagine your apartment catches fire (touch wood!) during a housemates cook-a-thon, torching your things. Your landlord’s insurance covers the building itself, but renters insurance can help you repair or replace your stuff.
What does home insurance for renters cover?
- Things that damage, or cause you to lose, your stuff. This can be your furniture, electronics, and so on. This extends to cover for spoiled food or medicine up to a certain limit, for example, a small kitchen fire knocks out power to your fridge and your week’s dinner plans are ruined.
- Things that other people hold you responsible for (and expect you to pay for). Say, if you host a party at home and a guest slips and injures themselves, you can receive up to $20 million in legal liability cover to take care of any legal costs.
Pretty simple, right?
For a little more detail, here’s a few specifics about the two levels:
Home Contents Insurance
Covers 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 (keep reading for more info).
Fire and Theft Contents Insurance
This is AAMI’s low-cost cover, for renters on a budget wanting cover for their own contents up to $25,000 against fire and theft.
What about extra cover for portable valuables?
With Portable Valuables Cover, you can add cover for portable items to your Home Contents Insurance that you might take with you 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 for up to $1,000 per item. Other portable items, including high-risk items like mobile phones or anything you want covered for more than $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).
Explore AAMI Contents Insurance
Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.