Not everyone these days can afford their own home. The required amount for deposits is getting larger and for some, the option of living with parents while they save is unthinkable. Renting is a great alternative, and also a preferred option for some. However, there are some pitfalls that need to be managed carefully while you are doing it.  Renters’ contents insurance is a necessity for those who make their home in someone else’s. Some rental agreements may even insist that prospective renters hold a renter’s insurance policy.

So what exactly does contents insurance for renters cover?

As a renter it’s even more important to insure your belongings. You may not have the luxury of being able to withdraw on a mortgage should something happen. So it’s essential to put a little extra aside to cover you. You are not covered by the landlord’s insurance (although the flip side of this is that you’re not expected to insure the landlord’s property). Therefore you must source your own insurance. Renter’s insurance can help you replace your personal items if they are lost, damaged or stolen while you’re renting. Some policies can even insure just your belongings if you live in shared accommodation, so when you move, your policy does too. And renter’s insurance is generally lower in cost than the average contents insurance policy.

Of course there are some things you need to bear in mind.

Questions you need to answer whilst sourcing insurance

  • Is it new-for-old replacement (meaning if your 12 year old fridge is damaged and needs replacing, will your policy cover you for a brand new fridge)?
  • Are the old, damaged contents removed?
  • Can you store your undamaged items while repairs are carried out?
  • If you move, are your items covered while in transit?
  • Will you be covered in the event of a fire, flood, break in or “act of God”?

There are some questions you need to ask of your potential insurer: are you able to lower the cost of your premiums by increasing your excess? This is a great way to save money over the long term.

If you’re renting, or considering renting a property, and looking for the ideal property to move into, why not contact us today? Here at Aspect Estate Agents we are the market experts in locating the ideal rental home for our clients. We’re happy to offer advice on all things property and leasing. Our friendly staff can assist you in not only finding your property, but learning about your new suburb and its surrounds.