Contents Insurance

What is contents insurance and why do I need it?!

Written by Korina Kontogeorgos

You have just signed a new lease and are preparing to move into your new pad however you cannot help but wonder whether or not you need contents insurance.  

Think about how you would cope if you damaged or lost your valuables due to a robbery, flood, fire etc. Things tend to happen when we least expect them to, so it’s best to guard yourself against your own stupidity or sheer bad luck.

More often than not, tenants assume their landlord will cover their contents insurance, however this is not the case. The landlord will cover home insurance, but unfortunately this policy does not cover the tenant’s personal possessions. The only way for a tenant to make a claim on their belongings is to have contents insurance.

Ultimately, the type of cover you choose will affect the premium you pay. The most inexpensive option, which entitles you to the bare minimum of cover, is a defined events policy, this will typically cover damage as a result of theft, fire, flood etc. For a broader range of coverage, policies that include accidental damage will protect you against unintended events e.g. spilling red wine on a carpet or dropping and breaking a fragile item such as a vase. Others give you limited cover if certain items are damaged outside of your home e.g. mobile phones, cameras or jewellery. 

There are two main types of contents insurance: 

  • Policies that cover the value of your belongings.
  • Policies that replace your belongings with new items e.g. 'new for old'. 

If nothing else, contents insurance can give you peace of mind. Not everyone with this kind of insurance will need to make a claim, but it is good to know it is there should you require it.

Keep Reading

What is landlord insurance and why do I need it?!

Many landlords believe that the cost of landlord insurance might outweigh the peace of mind, protection and financial security benefits it can provide. This is not the case. Whilst all care is taken when choosing your tenant and managing your property, unforeseen situations can arise. Read More

REIV strikes back as continued restrictions threaten Metro Melbourne's property sector

As a result of unacceptably high COVID-19 case numbers, the Victorian Government has made the decision to extend emergency powers for six months, revealing that physical inspections will not be allowed until at least 26 October 2020.   Read More
Find us on Facebook Follow us on Twitter Find us on Instagram Find us on Pinterest Visit our YouTube channel Find us on Linkedin