Renters insurance vs. contents insurance: What’s the difference?

For anyone currently searching for cover to protect their belongings, the terms renters insurance and contents insurance may seem familiar. Indeed, both will pop up in an online search when looking for insurance for your personal items.

The terms are often used interchangeably and they are very similar. However, there is an important difference you should know about: while both provide insurance for your personal belongings, renters insurance is designed specifically for tenants. That is, it covers renters’ personal belongings and furnishings at a leased out property. 

Contents insurance can also be taken out by homeowners. So, a homeowner can take out building insurance to protect the actual doors and windows in their home and contents insurance to protect the belongings inside their home.

Some differences with renters insurance

Broadly speaking, renters insurance and contents insurance offer the same cover. One of the only differences is that some renters insurance will offer cover for accidental damage done to any fixtures or fittings in the place you are renting. An example of this would be if you dented your living room door by accident. 

With renters insurance providers will also sometimes offer a lower cost version that protects you solely against fire and theft. Although this may be a more cost-effective option, it is important to remember that this type of cover is more basic. In other words, you want to make sure that you don’t wind up being underinsured.

Besides these and a few other nuances, renters and contents insurance are very similar in what they actually cover.

What does contents insurance cover?

As mentioned above, contents and renters insurance alike provide cover for your personal belongings. This usually includes items such as:

• Furniture
• Whitegoods
• Electronic equipment, e.g. laptops, computers, TVs
• Clothing
• Jewellery

Exactly what items are covered will vary from policy to policy, so make sure you double check what the inclusions and exclusions are before signing on the dotted line. If you have a particularly pricey item to insure, you may have to take out additional cover.

Keen to start getting quotes for your prized possessions? Head to Mozo’s compare contents insurance page to see what policies are on offer right now, or check out the deals below.