Does contents insurance cover that? 9 things renters need to know

For renters looking to protect their belongings, contents insurance can make an excellent option. But for the premium cost to be worth it, it’s vital your policy covers you adequately. 

So what does contents insurance cover? And what hidden traps should you know about?

Remember, policies vary between insurance providers, so it’s always important to read the product disclosure statement (PDS) before signing up.

It depends! So long as you tell your insurance provider you are moving, contents insurance will likely cover your belongings if they are damaged en route by an insurable event, such as a road vehicle accent, fire, or flood, or if they are damaged at your new or old address in a similar manner. 

However, contents insurance may not cover damage done by either you or the movers handling your belongings when loading or unloading. Additionally, your policy probably won’t cover any excluded items, like loose cash, cheques, gift cards, and so forth. 

It’s all down to risk: movers can knock belongings accidentally all the time, while a bushfire on the road is relatively unlikely.

Handle with care!

Astonishingly, some contents insurance policies cover indoor and pot plants! If they are not covered automatically, you may be able to add that expensive orchid as a specific item with a specific sub-limit. 

However, you probably won’t be covered for plants, hedges, and trees in your rental property’s lawn – that usually falls under your landlord’s building insurance. Check the PDS to get across the inclusions and exclusions.

Most contents insurance policies will not cover pet damage, and neither will your pet insurance. The only exception to the “animal exclusion” is if a wild animal, such as a bird, gets accidentally trapped in your property and damages your things trying to get out.

Unfortunately, contents insurance usually doesn’t cover mould damage. Mould is a gradual menace and often the result of poor ventilation, so providers put it down to negligence on your part. Negligence is too risky to insure, so they don’t.

As a tenant, knowing the rules around mould and your rental property is important. Your landlord is responsible for cleaning up mould before you move into your property – afterwards, most leases make preventing mould the tenant’s responsibility. 

If your rental home has a consistent mould problem, discuss ventilation solutions with your property manager. Left unchecked, mould can cause serious respiratory issues.

Contents insurance policies usually include storms, fires, and floods under their coverage – and good thing, too, because natural disasters don’t discriminate between homeowners and renters. 

Standard terms and conditions will apply, however. Providers will usually have specific definitions of what counts as a flood (runoff or welling water in your yard may not count), and your coverage may not kick in until a three-day waiting period has passed. 

Your belongings will also only be covered up to your sum insured, to make sure it’s adequate to genuinely replace everything you own.

Just like a homeowner, run your rental property through a home insurance checklist to see what risks are most relevant to your area.

Great news! If your rental lease says you’re responsible for certain fixtures and fittings that come with your new home, such as lights or curtains, your contents insurance may cover them, too. Even those custom kitchen tiles you installed (with your landlord’s permission) can be covered under your policy.

Termites can get into your wooden furniture, so it’s not just a problem for your landlord! Unfortunately, though, if critters or vermin infest your belongings, contents insurance won’t cover the damage. (But hey – neither will your landlord’s insurance).

Pests and parasites fall under the umbrella of ‘negligence’, making them too risky for providers to insure. 

Discuss any existing pest issues with your property manager before moving in, and make sure to keep your rental home clean and pest-unfriendly!

Some contents insurance policies have added inclusions for guests, including:

• Damage caused to guest’s belongings in an insurable event (i.e. flood) while staying with you.
  
• Legal liability in case of accidental loss, death, or injury while someone is staying in your home.
  

These aren’t usually commonplace, however, especially for basic and cheap contents insurance policies. 

Some weird exclusions may apply, too, such as damage done by guests to your belongings. If you invited them in, it’s on you.

Gone are the days when jewellery was the most precious item in our homes: now, it’s mostly smartphones, laptops, and our magnificent TVs. Fortunately, contents insurance usually covers damage to our electronic gadgets up to a certain sub-limit. 

Some conditions apply, however, such as:

• Your devices can’t be damaged while taking them out and about (i.e. bringing your laptop to work).
  
• They must be damaged in an insurable event, like theft, fire, or a genuine accident.
  
• If they’re stolen, they must be stolen from your home by someone who did not have your permission to be there (i.e. a break-in). Guests nicking your phone doesn’t count.
  
• You didn’t lose the device yourself. (Again, negligence is a no-go).
  

If there’s a silver lining, burglars tend not to go for electronic devices these days as they can be easily tracked. Hurray?

Compare contents insurance policies in the table below.