Are tenants covered by the landlord’s insurance?

When you rent a property, you might think that your belongings are covered by the insurance that your landlord holds. Unfortunately, this is a common misconception. Landlords are not responsible for insuring the tenant’s items in the rental property, nor does their landlord insurance extend to offer this type of cover.  

With this in mind, how important is it that a tenant protects their belongings with insurance? Well, think about this… As a tenant, you might own items such as computers, mobile phones, televisions, clothes, furniture and jewellery. If you don’t insure your belongings, and they are damaged or stolen, you could leave yourself exposed to financial hardship if disaster strikes.  

The decision to take out contents insurance is one that should be thought about carefully. The main argument made by those who don’t think they need contents insurance is: “I don’t have anything worth stealing”. 

The reality is that this is often not the case. Tenants are likely to own electronic goods (think the i-suite: iPad, iPhones, pods and macs) and personal goods such as clothing, accessories, books, bedding, bikes and jewellery. While many think they have nothing worth stealing and therefore insuring, if their possessions are damaged or stolen, the cost to replace those items quickly adds up. 

TIP: Tenants should complete an inventory of household belongings (including electronics, furniture, linen and jewellery) – the total value of the contents may be surprising.  

Theft is not the only risk tenants should be mindful of. A contents insurance policy can provide cover for insured events such as fire, storm and flood. 

Here is an example of when a contents policy may step in for a tenant…  

During a flood, water enters the rental property destroying carpets and floating floors, leaving the property uninhabitable. This means the tenant is unable to reside at the property for a period, while it is being repaired. The tenant would not be required to pay rent during this time, and the landlord’s insurance would step in to cover loss of rent during this period, but would not be responsible for paying for alternative accommodation for the tenant. With the right contents insurance (specialising in tenants), a tenant may be able to claim for the funds needed for temporary accommodation and may replace any damaged personal items owned by the tenant.  

Meanwhile, there is another really important feature in contents policies that tenants should not ignore – liability cover.  

Although the owner of the property is responsible for ensuring the home is properly maintained and safe and may be responsible if the tenant or their guest was injured on the premises because of negligence, there are times where the responsibility for losses falls to the tenant (sometimes known as occupiers’ liability).  

A tenant can face liability for damage or injury if they fail to maintain a safe environment for anyone that comes onto the property. Medical costs, lost wages or business earnings, compensation for pain and suffering, and even legal costs can all be awarded to someone injured on a premises – and be footed by the tenant if they are not careful in their duty of care.  

Here is an example of when liability cover may step in for a tenant…  

Say you have a guest over and they are sitting casually on the couch, however the tenant-owned mirror that hangs above them (a mirror you/the tenant recently hung) falls and hits them on the head, causing serious injury. They can sue you/the tenant if it was found the mirror was not hooked correctly to the wall. Legal liability would typically cover medical expenses and legal fees associated with this. 

It is a scary thought, but it does happen!  

Now, it is important to note that all contents insurance policies are different. So, when looking for one that suits you, it should typically cover you for specific risks you may face as a tenant including fire, theft, storm and liability. Shop around to find a policy that suits your needs and objectives. When comparing policies, read the Product Disclosure Statement (PDS) to determine the most suitable cover for your belongings. The PDS explains exactly what is and is not covered.  

To sum this up, what would you do if everything you own was destroyed in a house fire? Or you were burgled? Or someone hurt themselves on your property (and it was your fault)? This is where tenant insurance comes in. It is a safety net in case the unexpected happens. Tenant insurance ultimately offers tenants the opportunity to recoup costs when something goes wrong. Got other questions? Check out our tenant FAQs here.  

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are there, contact 1800 661 662 if you have any questions.