House Contents Insurance

What Sort Of Insurance Do I Need When I’m Renting?

Renting a property, whether it be with friends or family, can signify the beginning of a new phase in your life. There are many changes that come with renting a new property. Many of us overlook some of the less obvious considerations that moving house brings.

Have you ventured out and away from the security of your parent’s home for the first time? Perhaps you are returning home to NZ after a stint away? It is possible that obtaining contents insurance is a new and potentially daunting concept.

And for that third of you who have been renting for some time but have yet to delve into the necessary realm of protecting yourself and your possessions, then here’s the lowdown you might need to prepare you.

What is contents insurance?

Different from house insurance, which the owner of the property must provide, contents insurance is designed to protect you and your things. Not only can contents insurance protect your belongings from fire, theft or a natural disaster, but it also covers you from any liability to damages.

Law changes in 2019 have determined that should any damage to a property occur due to your carelessness, however unintentional it may be, you can be made to pay either 4 weeks rent or your landlord’s insurance premium, whatever is lower. Having your own insurance can cover this. It can also cover unintentional damage to the belongings of someone who is living with you.

How much does contents insurance cost?

Not as much as you might think. A quote is generally worked out after considering the following factors:

  • Your address. Certain cities or areas can be deemed riskier statistically than others.
  • Your age. Generally the younger you are, the more you will pay in insurance.
  • Existing contents insurance or claims history A history of your behaviour can help or hinder you
  • Whether you live in an apartment or house Generally speaking, a policy for an apartment will be less costly.
  • How you pay Annual payments may be cheaper, although monthly are preferable by many as they are more manageable.
  • Who lives with you The more people living on the property, the higher the potential risk
  • Your excess If you’re happier to pay a higher excess, you can find annual fees are lower as a result
  • Whether you have a burglar alarm If you have one, you may pay less.

It can be difficult to determine the cost of your possessions, but by using the many available tools online and comparing results with different companies, you can find a policy that works for you.

What other kinds of insurance should I consider?

Depending on your stage in life, there are other forms of insurance aside from contents insurance to consider. Health insurance will ensure that you can afford certain treatments that might not be freely available in the public health system. There are also many different subcategories within a health insurance policy that you can opt in for according to your needs, such as:

  • dental cover
  • surgical cover
  • frequent GP visits/medication cost cover
  • optician exam cover

If you have dependents in your care and wish to know that your family will be financially secure should you pass away, then life insurance can usually be added on to your health policy for a nominal extra.

Get in touch with a financial advisor if you have any questions. They can provide you with bespoke support.

Are you looking for a new rental?

If you’re looking for a new house to call home, then make sure you check out the listings available on Shopless. Be sure to research the surrounding areas, even taking a walk and speaking to neighbours before committing to a contract.

This helps you to determine whether you will feel comfortable in your new home and you might save a few dollars on your contents insurance as well!

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