Why You Should Get Renters Insurance

If you are renting it is important to have insurance to cover your personal belongings. While a homeowner is responsible to insure the physical property, fixtures and furnishings they own, this does not apply to tenant personal possessions.  This is why Click recommends that tenants have insurance for their belongings.

Why You Should Get Renters Insurance

Content insurance (sometimes called renter’s insurance) covers belongings such as a phone, laptop, TV, furniture, clothes, and jewellery. Contents insurance and renters’ insurance policies tend to offer similar cover however, some insurance companies separate renters’ insurance from contents insurance to cover incidents where tenants may accidentally damage a rental property. Tenancy Services NZ also recommend personal liability insurance for specific situations where contents insurance does not cover damage.

Renters insurance policies generally cover damage because of natural disasters, theft, fire, and vandalism. Insured items that are damaged, will be repaired or replaced with something of equal value under renters’ insurance cover. 

Most insurers offer free quotes and price calculators on their website. If you already have another kind of insurance plan e.g. car insurance, ask your insurance company about package deals to reduce the cost.

Changes were made to the Residential Tenancies Act in 2019 regarding tenant liability for damages. If a tenant damages property due to either accidental, careless or malicious behaviour, they will be liable for costs, up to a maximum of 4 weeks rent, or the landlord’s insurance excess, whichever value is lesser. It is important to note, this does not cover damage or loss to your personal possessions kept in your home.

As a tenant, the landlord must inform you about whether their property is insured and if so, the excess amount. This information is provided to you in any new tenancy agreement and can be requested at any time throughout the tenancy. 

If you have any questions about insurance cover or any other queries, contact your property manager or call our office on 03 466 7783


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