Do I need contents insurance for my rental home this Christmas?

By Maria Milillo, Business Support Manager, Property Management, Raine & Horne
NOVEMBER 5, 2021

This is a great question, especially with the winding back of lockdowns and restrictions.

With the end of restrictions, more people will be out and about, which means a greater chance of damage to a rental property and even the possibility of a spike in home invasions.

Moreover, figures from the NSW Bureau of Crime Statistics and Research regularly indicate that Christmas Eve and New Year’s Eve are peak times for property offences, including home burglaries and break-ins.

When renting a house or apartment, the landlord is responsible for damage or loss to the building and fittings and should have landlord insurance to protect against these risks. If you’re living in an apartment, the landlord will be contributing to the strata insurance that covers damage to the building and its common areas.

However, as a tenant, you have some liabilities that should be covered by insurance – unless perhaps you’re living in a fully furnished rental apartment. For example, as a tenant, you are responsible for your possessions – such as your clothes, furniture, electrical goods, books, and other valuable belongings. Therefore, if a disaster occurs, you’d be wise to have some contents insurance to ensure you can replace your lost possessions.

Before checking around for the best contents cover, be mindful there is a form of contents cover designed for people living in rented properties. ‘Renters insurance’ is a type of contents insurance policy designed specifically for people who are renting a property.

According to comparison website Canstar, Renters insurance works by covering all or part of the cost of repairing or replacing your belongings if they are stolen, damaged or destroyed due to specific events such as a fire, storm, and theft. For example, if someone broke into a home, you were renting and stole your TV, renters insurance would typically cover the cost of replacing it.

As with most types of cover, renters insurance varies from insurer to insurer. So, comparing policies from the likes of Terri Sheer and the more prominent insurers such as QBE, NRMA and AAMI to find the features that best suit your needs is a worthwhile exercise to ensure you have a festive and not restive Christmas break.