Contents insurance. As a tenant, you may not have to be concerned about protecting the house and making sure that the home is insured (that’s your landlord’s job). What about all of your possessions?
So, you are moving into a new house, that is exciting. While your stay may only be temporary, you should feel as comfortable and safe as possible. Have you thought about contents insurance?
Even if the four walls that surround you do not belong to you, and you are but a visitor in this space, you have plenty of belongings that are yours that you no doubt hold near and dear. A lot of your responsibilities as a renter fall on your landlord, which may be one of the nicest benefits however a lot of tenants often forget to consider contents insurance.
In worst-case scenario, there is a fire or flood in your home. Your landlord will cover damages to the house so you won’t need to worry about that. Who is liable for damages to your personal possessions? Unfortunately, home insurance does not cover your personal belongings. The only way to make a claim on your belongings is to have contents insurance.
Roughly 75% of Australian renters do not have contents insurance. Thousands of homes around Australia are affected by bush fires and floods every single year. In states such as Queensland with tropical climate and such a high risk of natural disaster, it is baffling that so many renters are not covered. Hopefully you will never have to make a claim, but peace of mind goes a long way, just in case.
Some tenants may feel as though contents may not be worth it as their possessions may not hold much value, but if you go through all of your items they may be worth more than first thought.
A good idea is to create an inventory of all of your items and tally up their worth. Then ask yourself if you would be able to afford to replace them in the worst-case scenario. If the answer is no, it might be a good idea to get contents insurance.
You can also get insurance to cover accidental damage. This might be a good idea if you have young children, or if you yourself are particularly clumsy (like me). Your brand new flat screen might thank you.
Think about it is like this: if you turn your house upside down and shake it, whatever falls out is covered under contents insurance, whatever doesn’t is covered under building insurance.