Do Renters Here Carry Renters Insurance to Cover Inadvertent Property Damage (from Fire, etc) ?

wisdomtooth on 05/01/2025 - 21:10
Last edited 06/01/2025 - 11:46 by 1 other user

I never did, nor did it ever come up when signing a lease, but just wondering, with all the talk here of chargers and batteries catching fire, and now EVs too…

UPDATE: After posting this topic, I found this thread about this. The upshot is that uninsured renters are at risk of paying for fire damage, if the fire comes from inside the property:

There are a lot of people who think that when accidental damage occurs, things will be fine if they can simply pay for the excess on their landlord's insurance policy to get things fixed. However, this is not the case. If you caused the damage, you can still be liable to pay for it (regardless of whether your landlord has insurance or not) - If it's not the landlord chasing you, then it'll be the landlord's insurer chasing you to recoup the money they paid out.
— @bobbifield

Financial Insurance

Comments

  • boomramada on 05/01/2025 - 21:13
    +3

    renters insurance? Do you mean contents insurance? or landlord insurance?

  • hasher22 on 05/01/2025 - 21:19
    +4

    If you're a tenant, you can get contents insurance for your own personal effects but you don't need property insurance (building insurance etc), that's what landlord insurance is for.

    For example if a fire burns down the property, your contents insurance covers your personal effects but your landlord will make a claim for the property through their own insurance.

    With EVs catching on fire, you have to make sure that part is covered under your car insurance (manufacturing fault is not usually covered by insurance). And let's say your car battery exploded, fire reached inside your home and burned everything down, then that's what contents insurance is for.

    • bargaino on 05/01/2025 - 22:21

      If you are careless, e.g. start a fire with a candle, the landlords insurer could sue you, so there is some benefit in tennants liability insurance.
      It is rare though.

    • wisdomtooth on 06/01/2025 - 07:55

      if a fire burns down the property, … your landlord will make a claim for the property through their own insurance.

      This thread says otherwise.

      • boomramada on 06/01/2025 - 08:25

        If your rented property burns down and you are game enough to start a new life with essentials, then you don't need contents insurance. Landlord insurance does not cover your stuff; it's your responsibility.

        • wisdomtooth on 06/01/2025 - 11:39
          -1

          What part of property damage did you not understand?

          There are a lot of people who think that when accidental damage occurs, things will be fine if they can simply pay for the excess on their landlord's insurance policy to get things fixed. However, this is not the case. If you caused the damage, you can still be liable to pay for it (regardless of whether your landlord has insurance or not) - If it's not the landlord chasing you, then it'll be the landlord's insurer chasing you to recoup the money they paid out.
          — @bobbifield

  • Halfpea on 05/01/2025 - 21:49

    We rent and we have contents insurance. Would be pretty silly not to. We have a full 4 bedroom house. My home theatre system alone would be 10k to replace new. I don't fancy being without a household full of things from a robbery or event.

    • elgrande on 05/01/2025 - 21:50
      +1

      How old is your stuff? Some policies have property age limits.

      • Halfpea on 05/01/2025 - 21:53

        We just went through a new for old upgrade so everything is quite new. At most I'd say 5 years only, and that's the home theatre set up. But 85% would be 2 years or less, well anything of value anyway.

        Replacing things soon add up. We were surprised when we added it all together despite having paid for it.

        • mskeggs on 06/01/2025 - 07:43

          The big problem with a fire or other large claim is the need to buy everything at once, so you can’t wait for a fridge on sale or Black Friday for clothes or whatever.
          For a lot of people on this site, the cost would be double what they paid in the first place.

          • SpainKing on 06/01/2025 - 17:31

            @mskeggs: I haven't had to deal with insurance yet. Is the amount an insurer pays out what the current market rate for that device/item is, or the price paid at purchase?

            If it's the former, I'd imagine buying your household items/appliances at a steep discount (via OzBargain) would mean you could potentially make a profit. If it's the latter it would work against you as the insured and you would be worse off for buying at a bargain price

            • mskeggs on 06/01/2025 - 19:39
              +1

              @SpainKing: It depends on what your PDS says, and the insurer’s policies.
              A friend had a house fire 25 years ago, and NRMA were very good about replacing with equivalent things, even if the price couldn’t be proven.
              But, they did so via gift cards or store credit to Harvey Norman or Myer etc, that I presume they bought at a discount. This obviously limits your ability to get a bargain.
              In my own case after a burglary, an older MacBook was stolen, and I successfully argued it should be replaced as new for old - so there is scope to negotiate with the insurance assessor.
              One silver lining, is stuff you wouldn’t re-purchase is also insured, in my case a bunch of CDs turned into store credit at JB used for a better stereo, and clothes from when I was skinnier were replaced at my fatter size.

      • boomramada on 05/01/2025 - 21:56

        If your house burned down and you're insured contents for 100k, you get 100k, it doesn't matter how old it is. But if your house got broken into and lost your 10-year-old home theatre system, you might get 1/10 of the price, based on the policy or new for old. It all depends on what is in that whatever doc lol

        • Halfpea on 05/01/2025 - 22:11
          +2

          I covered all the important bases when I took out the policy.

    • samfisher5986 on 06/01/2025 - 00:53
      +1

      Renting but you spend 10k on a home theatre system seems crazy to me. Buy a $500 TV and use $9500 on your deposit!

      • wisdomtooth on 06/01/2025 - 07:53
        +1

        Buying is crazy.

        • O K on 07/01/2025 - 12:39

          Until you’re on the news because your landlord has decided to give the house to his/her newlywed offspring for a pittance and you can’t find a place to live and are getting knocked back on all houses even though you’ve been holidaying overseas once a year/buying the latest technology the second it comes out/getting your nails done every two weeks/getting ubereats twice a week etc etc but are now in your 50’s living in a tent ….

          PS the “your” is not directed to you - it’s a general “your”

          PPS and not all those above scenarios are the reasons why people can’t afford a house, some people have medical problems but the attitude that “buying is crazy” may come back to bite you in a few years time

          • wisdomtooth on 07/01/2025 - 15:59

            @O K: You're conflating investing with spending. The alternative to not buying is not spending it all on holidays and layers technology; the alternative is making more liquid and less idiosyncratic investments.

      • Halfpea on 06/01/2025 - 08:05
        +2

        I have my reasons for renting. I will not buy a property in this country, especially where I live. I won't be retiring in Australia so I have no need to spend 700k on a tiny box that will trap me until I die.

        I can build a house tomorrow in my choice of country for retirement but, there is no rush. Thanks

        • boomramada on 06/01/2025 - 08:15
          -3

          That tiny shoe box in this country got awsome capital gain, just saying :)

          • Halfpea on 06/01/2025 - 08:24
            +1

            @boomramada: For now…

          • Protractor on 06/01/2025 - 09:43
            +2

            @boomramada: This is the great Australian cancer that ate the fair go.

            • boomramada on 06/01/2025 - 11:12

              @Protractor: It's still fair to go, I started from nothing and now I have a home and bit more, of course, there are some sacrifices. You just can't have it all.

              • Protractor on 06/01/2025 - 11:48
                +1

                @boomramada: No the fair go is dead. (not just in housing) Negative gearing for multiple properties is entitled unwarranted greed.
                Self interest ((profanity) you) is the default position for the majority of ppl these days.Even more obvious when post after post asks strangers how the OP should behave in certain situations.It's like they were brought up by robots and have all memories of their upbringing erased, so the retention of common sense is absent.
                Contemporary generations are situationally unaware by choice.

              • mskeggs on 06/01/2025 - 19:42

                @boomramada: Is there really no limit to housing price appreciation? Or do you think it will be harder for the average home to grow from $1m to $2m than it was from $500k to $1m?

                I guess “past performance is no guarantee of future returns”.

                • boomramada on 06/01/2025 - 20:33

                  @mskeggs: Time I bought the house, sales person pitch was, it will be double in 7y time. That wasn't the reson i bought it for, but he was correct 😬

                  And currently in my area, houses get sold soon after its enter the market, look like someone printing money lol

                  People always point the finger at negative gearing but prices will continue to rise due to tons of other factors.

                  Fair goes is still around, it just does comes in a platter.

      • coffeeinmyveins on 06/01/2025 - 10:50
        +1

        ah the old "don't buy lunch for $20, that could go towards a deposit" argument

  • Protractor on 05/01/2025 - 23:56

    WTF?
    Renters here as opposed to where? What country did you come from where they do?

    • mskeggs on 06/01/2025 - 07:45

      US terminology, because the whole internet must use US English or the Americans complain. I am sure that is the wording the top AI result on Google would give if you queried the need for insurance when renting.

      • Protractor on 06/01/2025 - 09:30
        +2

        Sounds to me like OP has migrated here, and from wherever they came 'tenants' may have been required to insure.I'm curious as to why and which country that would be. To me it's a gimme, if you wanted this concept here, the first thing gone is negative gearing. Landlords have plenty of opportunity now to self insure for shit tenants, as it should be.

        • wisdomtooth on 06/01/2025 - 11:40

          I have, but that's got nothing to do with it. The "here" in my question refers to OzBargain!

    • wisdomtooth on 06/01/2025 - 07:54

      Here on OzBargain, duh.

      • Protractor on 06/01/2025 - 11:53

        Better late than never ,eh?
        Maybe clarify if renter = the tenant or the landlord. Who knows, more ppl might understand what you're trying to ask.

        • wisdomtooth on 06/01/2025 - 13:44

          It's English:

          renter

          noun [ C ]
          uk /ˈren.tər/ us /ˈren.t̬ɚ/

          • someone who pays money to live in a house or apartment that someone else owns

          — Cambridge Dictionary

          In Australia too: Renters Insurance

          • mskeggs on 06/01/2025 - 19:46

            @wisdomtooth: That product is different to usual contents insurance, and is indeed targeted at tenants.
            The main difference is accommodation assistance (usually covered under building policies for owner occupiers) and liability insurance, which is again usually included in building insurance.

            If I was a tenant and it was the same price as a general contents policy from other insurers, I would choose it.

            • wisdomtooth on 06/01/2025 - 20:35

              @mskeggs:

              liability insurance

              The whole point of my initial question.

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