More than one-third of Australian households rent, and the majority have no insurance covering their possessions. The most common reason is a misconception: that the landlord's insurance covers them. It does not. Your landlord's building insurance covers the structure — walls, roof, fixed appliances, floors. Your belongings inside that structure are entirely your responsibility. A fire, break-in, or flood that destroys a rental property will leave an uninsured tenant with nothing.
| Item | Landlord's building insurance | Renters (contents) insurance |
|---|---|---|
| Walls, roof, floors, fixed fittings | Yes | No |
| Built-in appliances (oven, dishwasher) | Usually yes | No |
| Your furniture | No | Yes |
| Your electronics (TV, laptop, phone) | No | Yes |
| Your clothing and personal items | No | Yes |
| Your liability to others | No | Yes (personal liability cover) |
| Temporary accommodation if uninhabitable | No | Yes (most policies) |
If you are renting a furnished property, the landlord's contents insurance may cover their furniture. But your personal possessions — laptop, phone, clothes, jewellery, bicycle — are still your responsibility regardless of whether the property is furnished or unfurnished.
Renters insurance is a contents-only policy. It typically covers:
Insured events: Fire, storm, flood (check — some policies exclude flood), theft and attempted theft, malicious damage by third parties, water damage from burst pipes, and accidental damage (if you select this optional add-on).
Personal liability: If you accidentally cause damage to the building or injure someone, your personal liability cover pays the legal costs and compensation. This is particularly valuable in rented properties — if you accidentally start a fire or flood a neighbouring apartment, the resulting liability could be substantial. Most renters policies include $10–$20 million in personal liability cover as standard.
Temporary accommodation: If your rental property is made uninhabitable by an insured event, most policies cover the cost of alternative accommodation while the property is being repaired — typically up to a daily limit for a set number of days.
What it does not cover: Accidental damage to your own possessions (unless you add this), items left in your car, general wear and tear, and valuables above any specified sublimits unless separately listed.
Renters insurance is the cheapest form of personal insurance available in Australia. Annual premiums typically range from:
| Coverage scenario | Typical annual premium |
|---|---|
| Single person, $20,000 contents, city apartment | $180–$280/yr |
| Couple, $40,000 contents, suburban house | $280–$420/yr |
| Family, $60,000 contents, house | $380–$600/yr |
| Premium (high-value contents, accidental damage) | $600–$1,200/yr |
Premiums vary by postcode (bushfire, flood, crime risk), the excess you choose, the sum insured, and whether you add extras like accidental damage or portable valuables cover. A higher excess reduces the premium; most standard policies default to a $200–$500 excess.
Most renters significantly underestimate the replacement value of their possessions. The key word is replacement — not what you paid originally, but what it would cost to replace everything today with new equivalent items. A room-by-room count typically produces a number that surprises people.
A rough estimate for a furnished one-bedroom apartment: laptop $1,800 + phone $1,200 + TV $1,000 + clothing and shoes $5,000 + kitchen equipment $800 + bicycle $600 + bedding and linen $800 + furniture (if your own) $5,000+ = $16,200+ before accounting for jewellery, camera gear, instruments, or sporting equipment. Most single renters need at least $20,000–$30,000 in contents cover; couples typically $35,000–$55,000.
Many renters set their sum insured too low and only discover the gap when they claim. If you experience a total loss (fire destroying everything) with $20,000 insured but $35,000 in actual replacement value, you absorb the $15,000 difference personally. Spend 20 minutes doing a room-by-room count before setting your sum insured.
Standard contents policies cover your possessions at your home address. A laptop at a cafe, a phone in your pocket, a camera on holiday — these are not covered by default. Portable contents or personal effects cover is an add-on that extends protection to items you take away from home. It is typically an additional $50–$150 per year and covers items taken anywhere in Australia, with some policies extending to worldwide cover for travel. If you regularly take high-value items outside the home, this add-on is usually worth the cost.
Theft from a vehicle is excluded by most standard contents policies unless the vehicle was locked and showed signs of forced entry. Leaving a laptop visible on a car seat and returning to find it gone is unlikely to be covered. Accidental damage — dropping your phone, spilling a drink on your laptop — is only covered if you specifically added accidental damage cover, which is optional. Flood cover varies: standard policies may exclude flood but cover storm damage; some exclude both. Check your PDS specifically for flood, not just "water damage."
Check whether your renters insurance is priced competitively for your situation.
Check My Contents Insurance