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Insurance for Students - Cover and Policy Costs

​Insurance for Students protects your possessions while you are renting and living away from home. Our guide explains what policies cost and what you're covered for.
Updated 26 November 2024

​What is Students Insurance? Do I need it?

Student insurance, also known as contents insurance, is cover you take out to protect your possessions (phone, laptop, TV etc) if you’re living away from home as a student. 'Student insurance' is effectively the same as 'contents insurance' - many insurers advertise Students insurance but direct you to purchase contents insurance policies.

We have created this guide to explain Student Insurance and answer the most common questions that student ask, covering:

MoneyHub Founder Christopher Walsh Shares His Views on Student Insurance:

"I believe it's critical to be strategic with what insurance you get while avoiding the risk (and cost) of being over-insured. Since 2019, the law has protected students (or anyone renting a property) from the costs of causing accidental damage to a home, limiting the general need for a contents policy. However, certain assets have risks that may need to be insured against:

1. Third-Party Cover for Cars: I believe third-party car insurance is essential (if you don't have a comprehensive policy). Too often, students damage someone else's car or home with their car; the costs can be nearly unlimited, and you can be in debt to an insurance company for years paying off the damage. Third-party is much cheaper than a comprehensive policy and can protect against theft and fire damage as well. Driving without some form of car insurance is a major risk and one I don't believe is worth taking.

2. Valuable Assets: Your laptop, phone, tablet, or other high-value items are indispensable as a student. However, many get lost, stolen or broken and can cost thousands to replace - money a typical student doesn't have immediate access to. Contents insurance policies range in price - if you don't believe the cost is worth it and are prepared to take the risk of replacing a loss at your own cost, that's perfectly understandable.

Insurance companies often market products that sound essential but add little real value to students. For example:
  • Redundant 'landlord protection' (or similar) cover: Tenancy laws already limit your liability for property damage, so you likely don't need extra 'liability' policies. The only risk you must protect in a student flat is the damage or theft of your items.
  • Over-insured contents: Be strict on what you genuinely need to cover and the value to replace it. By doing so, you'll avoid overpaying for a policy.
  • Duplicate covers: If you live in a residence hall and are a first-year student, some home and contents policies cover you. If you think this applies to you, check with your parents to see the scope of their policy. Furthermore, you won't need to cover the phone under a contents insurance policy if you already have phone insurance.

Insurance safeguards you against life's uncertainties, but it's not about buying every policy being sold. The key is to insure only what matters most - and what you can't afford to replace out of pocket. Don't over-insure; just be accurate with the value of your belongings and find a policy that covers you sufficiently while charging a low annual fee".
Christopher Walsh
MoneyHub Founder

Do I Need Student Insurance?

It depends. If you have valuable possessions that you can’t afford to replace, then getting contents insurance could be a good idea. 
  1. If you are concerned about being liable for accidentally damaging your student flat and want insurance for that, things have changed considerably. A new law passed in 2019 minimises a tenant’s liability for damage. As per a summary on the government’s Tenancy Services website, if tenants (or their guests) cause careless (i.e. accidental) damage in a rental property, they will only be liable for 1) the cost of the damage, 2) up to four weeks’ rent or 3) the landlord’s insurance excess, whichever is lower.
  • So, if you leave a frying pan on, get distracted and burn down your student flat, your liability could be as little as $200 if that’s the landlord’s excess. If the excess is $1,000, but your weekly rent is $150, then your liability will be $600.
  • Unlike historical legal cases (with many involving students), insurance companies cannot pursue tenants on the landlord’s behalf for the cost of damage unless the damage was intentional or the result of an act or omission that constitutes an imprisonable offence.
  • This means that if you intentionally set fire to your flat or do something similar, you’ll be personally liable for the cost of the damage. This would also be the case if you had a contents insurance policy, as deliberate damage is always excluded.

Student Insurance - Our view:

  • Even if you’re renting a property from a landlord, you’ll still need contents insurance if you want to cover your possessions - this is the primary benefit of such policies. As you don’t own the flat you live in, your landlord is responsible for buying a home or landlord insurance policy to protect the building.
  • To help you plan and estimate the value of your contents, download our spreadsheet to make the task easier.

How Much Does Student Insurance Cost?

The average cost for a student when we arranged quotes for contents insurance policies in various cities was $400 to $600.

​What you'll pay depends on:
  1. Your address - some insurers assess certain cities or areas as riskier, and like-for-like comparisons suggested that Auckland addresses, for example, could pay 5-10% more than regional addresses for the same level of cover.
  2. Whether you live in a house or an apartment - contents cover for items in apartments can be cheaper (but not always).
  3. Your age - as a student, the younger you are, the more expensive your policy - so a 19-year-old pays more than a 50-year-old.
  4. If you have existing contents insurance - insurers like to see a history of behaviour, so if you have had insurance before, some insurers offer lower quotes than someone taking out contents insurance for the first time.
  5. A burglar alarm - if your flat has one, your contents policy may reduce in price, and if it's monitored, you might pay even less
  6. Your claims history - if you've been unlucky and submitted claims before, your premium may be higher
  7. The number of flatmates you have - this can be a factor; generally, the higher the number, the higher the risk, and the more you will have to pay for a policy.
  8. How you pay - monthly instalments help manage costs, but annual payments are often cheaper.
  9. Your excess - volunteering a higher excess payment tells insurers that you'll only make a claim when the loss is big. In return, you'll pay a lower premium as the risk you'll make small claims is low. 

Compare contents insurance quotes

  • If you’re a student, renting a room in a flat and looking for cover, comparing contents insurance policies is the easiest way to find a better deal.
  • We look at trusted insurers and compare the policies and prices.
  • As with all insurance products, the cheapest option isn’t always the best, nor is the most expensive the best either.
  • ​To get the right policy for your needs, we suggest having an accurate list of the possessions you wish to insure. This way, you'll avoid overpaying for insurance you don't need and minimise the risk of underinsuring.

Must-Know Insurance for Students Facts

We outline the important information and explain the fine-print buried in policy wording:

Will my landlord’s home insurance cover me?

If your landlord has a contents insurance policy in place, it is most likely to only cover the contents in the house. For example, if your rental is fully-furnished, it will cover the beds, carpets and whiteware, but not your possessions. You can ask your landlord if they have other forms of insurance to be sure.​ 

Know This: Most students who choose to insure their personal items, such as laptop, phone, musical instrument etc, don't rely on their landlord's policy as it is unlikely to cover them. Instead, they buy a stand-alone contents insurance policy.

What does a typical contents insurance policy cover (specific to students and the risks while flatting)?

It depends what you choose to cover, and how much you insure for. A standard policy will include $10,000 or $20,000 of cover, with fixed limits for specific items. In general, a standard contents insurance policy should pay out if your possessions are damaged as a result of the following:
  • Storms
  • Flooding
  • Fires
  • Explosions
  • Vandalism
  • Theft
  • Subsidence
  • Earthquake
  • Escape of water

Will my contents be covered for accidental damage?
Usually yes – but check the policy before signing up as they do differ between insurers.

What isn’t covered by a typical contents insurance policy?

All contents insurance policies have exclusions. These generally include:
  1. Theft of or deliberate damage to your belongings by anyone living in your home is why choosing flatmates carefully is as important as keeping your belongings safe.
  2. Damage or loss when your contents are in storage - if you study in another city and store items in between academic years, you won't be covered for any loss unless the policy allows it.
  3. Items valued above the policy limits unless they have been specified in your policy - make sure you are accurate. 
  4. Wear and tear leading to gradual damage - contents insurance won't pay out when items stop working or become obsolete.
  5. Unforced entry theft, i.e., if you leave your windows open and are burgled (check the policy as rules vary between insurers).
  6. High-value items – all contents insurance policies have a single-item value limit, meaning you won't be able to claim on items that exceed a certain value. If you need cover for items like a $10,000 camera or $20,000 musical instrument, you'll need to purchase additional cover.
  7. Business possessions – if a covered event occurs, many contents insurance policies won't cover items or belongings used for home businesses. This isn't likely to be relevant to students, but it's worth being aware of.
  8. Away-from-home: Check to see if you're covered if you take belongings out of your home. Some will pay out if disaster strikes (theft, loss, etc.), others won't. ​

How much cover do I need as a student?

This depends on what possessions you own and their value. When getting a quote, it’s useful to have a sum of the value of your contents as well as a list of any special value items. This avoids guessing and risking getting the wrong cover.

Know This: If you overestimate your contents you’ll pay for cover you don’t need. On the flip side, underestimating can leave you exposed if disaster strikes and you need to claim. To help you plan and estimate with precision, download our spreadsheet to make the task easier.

Generally, students are likely to insure laptops, phones, tablets and TVs, as well as musical instruments.

Important - Get an accurate contents valuation: New Zealanders often undervalue or overvalue their contents. Our sum insured guide provides detailed information to help you get it right. We recommend starting with Suncorp's contents calculator, which we explain in our video.

Will I be covered if I share a flat with other students?

Yes – but limits for claims exist. For example, you won’t be covered if a flatmate or if a guest of a flatmate steals from you. When getting a quote, the insurer will ask you about your living situation – make sure to specify that you’re flatting and let them know how many people you flat with. 

What about contents in student accommodation, i.e. halls of residence?
Contents insurance policies cover shared student accommodation.
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