Tenant Insurance in Perth: Why It’s Essential for Renters
Are you new to renting and considering whether rental insurance is worthwhile for you?
Many first-time renters moving out of home have never had to make decisions about insurance before.
If renting and insurance are new to you, it can be difficult to navigate options, so we’ve put together some handy tips from our experts.
Why Do I Need Renters’ Insurance
Landlords take out home building insurance, and may also insure their own contents, but their insurance never covers tenant’s possessions.
You are responsible for insuring your own belongings — clothes, furniture, etc.
Insurance may not seem like a ‘must have’, but having managed properties for many years, we’ve sadly seen tenants devastated by unexpected events. Many of these could have been insured for but were not, leaving tenants with some unexpected costs!
You may never experience these events, but they can all happen:
- burglary
- natural disasters like:
- storms, with damage from lightning, hail, wind, or stormwater
- fire — domestic / bushfire
- flood
- earthquake
- malicious damage
- escaped water (e.g. from a burst pipe)
- impact — a tree or vehicle crashing into the property
- guests injured, creating liability.
You may think your contents aren’t worth much, but if you lost all of it, could you replace even the bare necessities immediately?
Not many of us could without help from our insurer.
Steps Towards Making a Good Insurance Decision
Do Some Preliminary Research
One of the first steps to take is to speak to a property manager — if you aren’t renting through an agency already, the team at We Love Rentals may be able to help.
Property managers can’t give personal insurance advice, but they can suggest what to look for.
Other ways to find information include:
- Consulting Choice for consumer research comparing insurers and policies
- Searching websites like Canstar and Finder which list and compare insurance products
- Asking an insurance broker to find you a good deal.
NOTE: brokers and comparison sites both offer useful information, but neither access all products on the market.
Always read the Product Disclosure Statement (PDS) for any policy you’re considering. Note what is covered and definitely what is “excluded”.
Weighing Up Risks
You may not own many big budget items, but it can be a shock to realise how much your possessions will cost to replace if disaster strikes.
So, consider what risks are prevalent in the area and weigh these up against your personal situation.
We suggest checking locality risks — for example, whether the area is known for crime, bush-fire prone, or on a floodplain.
Make sure any policy you take out covers your risks and those you see as important. If the policy doesn’t it probably isn’t right for you, even if it seems reasonably priced.
Calculating Insured Value
To work out what cover you need, and to get an accurate quote, ask yourself:
- What do I own?
- What is it worth?
- What is the replacement cost?
- Do I only need it insured at home?
There are useful calculators to help you work out the value of your contents on most insurers’ websites. The Insurance Council of Australia also provides one.
Most renters’ policies cover these items to a limit, provided they belong to you:
- furniture
- clothing
- kitchen items (pots, pans, cutlery, plates, etc)
- jewellery
- curtains / rugs
- electronics
- toys / books / games
- appliances / whitegoods
- artwork / decorative items
- tools
- portable pools / spas
- garden equipment
- potted plants.
Consider whether you need “extras”. For example, you can nominate valuables worth more than the usual policy limits, and/or ‘portable’ items you want covered away from home. These might include:
- jewellery
- sporting equipment
- tools
- art / antiques / collectibles
- laptops / phones
- musical instruments.
If you’d like to be insured but don’t have a big budget, don’t despair. Basic renters’ policies can be quite reasonably priced.
But pay close attention to the differences between policies and look closely to see what is best for you.
Cover local risks, the type of belongings you own, and find the policy to suit your circumstances.
What’s The Next Step?
Why not talk to your property manager or give us a call?
The experienced property managers at We Love Rentals have a wealth of knowledge to share and can also refer you to a local broker.
Email us or call (08) 6254 6300 for friendly, professional advice.
Brendan Leahy
I am the licensee of We Love Rentals and provide support to the team whenever needed. I began my real estate career over two decades years ago. While I loved seeing people achieve their dream of a new home for their family, I kept thinking that there had to be a better way of doing real estate – one with respect for the long term benefit of the client and one that focuses on customer satisfaction.
