What is renters insurance?

In the event of a natural disaster or break-in, not having insurance can be stressful and potentially leave you with a sizeable dent in your bank account.

Renters insurance can help provide a safety net if you find yourself in this situation and need support getting back on your feet financially.

What is renters insurance and how does renters insurance work?

Renters insurance is a type of contents insurance policy for people who are renting a property. It works by covering all or part of the cost of repairing or replacing your belongings if they are stolen, damaged or destroyed due to certain events, such as fire, storm and theft. For example, if someone broke into a home you were renting and stole your TV, this insurance would typically cover the cost of replacing it.

What is the difference between renters insurance and contents insurance?

In many cases, renters insurance is the same or very similar to a contents insurance policy. When applying for a quote for a contents insurance policy, you may just need to specify that you’re a tenant. If you decide to apply for a policy advertised as ‘renters insurance’, be sure to check that it offers enough cover. You can also consider a standard contents policy, which may be more comprehensive, depending on the product.

Why might I need renters insurance?

Renters insurance covers your belongings. Your landlord will likely have taken out an insurance policy on the property where you’re living, but that does not cover the items you own in that property, such as your clothes, your furniture, and any valuables you keep on the property.

When you are renting, the owner will generally take out landlord insurance or home insurance to protect the property. If it’s a furnished property, the owner may also take out contents insurance to cover the items they own.

While the owner is responsible for damage or loss to the physical property, fittings and any furniture they own, they are typically not responsible for any damage or loss that occurs to your personal belongings. It’s usually your responsibility to protect your own items.

Given your belongings may not be otherwise protected, taking out a suitable insurance policy could be worth considering if you are a renter. Think about the cost of your furniture, electronics, clothes and other valuables—it could add up to more than you realise.

What does renters insurance cover?

Renters insurance covers the cost of repairing or replacing your belongings if they are damaged or destroyed by certain events. The level of cover depends on the policy you buy.

You can generally insure all of your personal belongings, including furniture, appliances, electronics and clothes. But be sure to check if your policy has any exclusions before committing to it. For example, you may need to get additional cover for portable items such as your phone, laptop or jewellery.

Your insurer might also put limits and sub-limits on what you can claim. For example, they could limit a jewellery claim to up to $1000 per item. Therefore, you may want to insure particularly expensive items separately on your policy. But keep in mind this may raise the price of your insurance premiums.

Renters insurance typically protects your possessions against events such as:

• Fire
• Theft
• Storm, hail, cyclone, rainwater and water from leaking pipes
• Accidental breakage of glass or ceramics
• Lightning
• Earthquakes and tsunamis
• Impact damage, such as loss or damage caused by the impact of a motor vehicle or falling tree
• Legal liability cover, which is designed to protect you financially if someone takes legal action against you as a result of an incident that occurred at the property you are renting
• Food spoilage due to an insured event

Renters insurance may also provide you with temporary accommodation for a certain period of time if the rental property you live in is significantly damaged from an insured incident.

You may also be able to add optional extras to your policy, such as portable contents cover, flood cover, accidental damage and motor burnout.

What doesn’t renters insurance cover?

It’s worth noting that renters insurance would generally not cover the cost of your rent if you were unable to pay it due to a drop in your income. If you are looking for insurance that covers you for loss of earnings, you may want to consider income protection insurance.

This may pay part of your income to help you cover expenses such as rent if you are unable to work because of an injury or illness. But it typically doesn’t cover you if you’ve been stood down or have become unemployed.

How much does renters insurance cost?

The cost of insurance can vary depending on factors, such as:

• how much coverage you decide to take out
• your excess
• whether you decide to add any optional extras
• your claims history
• where you live

You may be able to get a discount on contents insurance if you buy your policy online.

Another way to potentially lower your premiums is to increase your excess. Typically, the higher your excess, the lower your premiums. But make sure you can afford to pay this amount, should you need to make a claim.

→ Related article: Home insurance discounts & deals currently on offer

Who offers renters insurance in Australia?

The following providers offer renters insurance in Australia. Bear in mind that some providers only operate in certain states and territories.

• AAMI
• Allianz
• APIA
• Aussie
• Bank of Melbourne
• BankSA
• Budget Direct
• CCI Personal Insurance
• CGU
• Coles Insurance
• Essentials by AAI
• Hollard Australia
• Huddle
• Insurance 4 That
• NRMA
• Ozicare
• Qantas Insurance
• QBE
• RAA (SA)
• RAC (WA)
• RACQ (QLD)
• RACV (VIC)
• RentCover Landlord Insurance
• SGIC (SA)
• SGIO (WA)
• St.George
• Suncorp
• Territory Insurance Office (NT)
• Westpac
• WFI

There are also some renters contents insurance options offered through a broker for providers such as ACS Financial.

Source: Insurance Council of Australia. Correct as of 16 April 2025.

How do I calculate the value of my belongings?

Before taking out a policy, it is important to accurately estimate the total value of your possessions to ensure you’re properly covered.

One way of doing this is by using an online contents calculator, such as the Insurance Council of Australia’s. It may be a good idea to use a calculator that asks a number of detailed questions to get a more accurate result.

Once you’ve purchased your insurance policy, make sure to keep a detailed record of your belongings in case you ever need to make a claim. A detailed inventory may be essential to verify your losses and support your claim, so receipts, photos and valuations could prove important. It could also be worth getting independent valuations for more expensive items.

How will I be compensated by renters insurance?

When you make a successful claim, your insurer may arrange to repair or replace your damaged belongings, or pay you the amount it would cost to repair or replace them.

Many providers offer ‘new for old’ replacement of covered items. This covers the full cost of replacing your belongings with similar new ones. Alternatively, some providers may offer you the value of your lost or damaged belongings, based on what they were worth at the time it was insured.

For example, if your laptop was valued at $500 when you took out content insurance, you would only receive this amount when making a claim. But it may cost you more money to buy a new laptop of the same quality.

Because ‘new for old’ replacement generally offers you a higher level of cover, the premiums may be more expensive than value replacement. Consider the terms and conditions for the policy carefully or contact your insurer to confirm whether a policy you’re considering will offer ‘new for old’ or value replacement cover for your items.

Can I get renters insurance if I am living in a sharehouse?

Insurance policies typically don’t let you pick and choose which rooms to cover. This means you may not be able to just insure your room, and instead would need to take out insurance for the entire household. Depending on whether or not your housemates want to chip in, you can either add or leave their stuff off the valuable items list. If you do choose to only cover your own belongings, this could help keep premiums low.

How to find the best renters insurance

The best renters insurance policy for you may be different from what’s best for the next renter. Because everybody has different financial and living situations, it’s important to compare a variety of different renters insurance options and consider their cost, features and benefits before applying.

To help you work out which renters insurance policy might best suit your needs, consider taking the following steps:

1. Work out how much your belongings are worth
2. Do you have any expensive and/or portable items to insure?
3. Would you prefer new for old replacement or value replacement cover?
4. Do you want extra cover, such as temporary accommodation?
5. Get quotes from a range of different insurers
6. Consider whether it could be worth adjusting the excess or extras to affect the premiums
7. Compare the costs and benefits of each quote before making a final decision.

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