TenantsTips / Australia / Why Contents Insurance is Important for Australian Tenants

Why Contents Insurance is Important for Australian Tenants

Many, if not the majority, of tenants choose not to protect their valuables with contents insurance. There are probably a variety of reasons for this but the main reason is probably psychological.

A tenant may think that since it is not their 'home' then protecting their contents is not important. Additionally television and newspaper ads about contents insurance rarely target tenants. However, it is not the landlord’s responsibility to insure your personal possessions.

It’s not just expensive items that need to be insured

The mindset referred to above really needs to change, particularly as more and more families choose to rent rather than buy. Singles, couples and families may well have a number of expensive items in the premises they are renting such as TVs, computers, stereo systems and other expensive items (either decorative or functional).

In many cases, the decision to purchase Australian contents insurance should be a no – brainer. A good rule of thumb may be to consider that if there is anything in your house that you bought using a loan then you should make sure it is insured, because if it isn’t and it gets stolen or damaged, you are still going to have to make the loan repayments.

Compare prices of Australian contents insurance

So where do you go to find contents insurance that is appropriate for you? This is made slightly more difficult by the fact that insurance companies rarely consider that tenants may want to purchase insurance. However there are an increasing number of websites that allow you to compare the policies provided by insurance companies.

Remember that when you are looking at different contents insurance policies make sure you are thinking of the fact that you are protecting the items in your home. They are your possessions regardless of whether you are a tenant or owner.

Include all your items when you get a quote for contents insurance

People who have never looked into contents insurance often tend to include big and expensive items such as the ones mentioned, that may have been purchased using a loan, and overlook items that individually may not be overly expensive but when grouped together are in fact quite valuable.

Clothes are a very good example of this. There may be few expensive items in your closet, particularly if you are male, but if there is a fire in your house it will cost a lot of money to replace all the clothes that were damaged. It could still be expensive if you replace only a fraction of the items that were damaged or destroyed.

Hopefully this article has demonstrated how important contents insurance is for tenants in Australia. And as more families choose to rent the decision to insure items purchased using loans is also something that must be considered.



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