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Renters' Insurance - Cover and Policy Costs

Renters' insurance safeguards your possessions while you are renting, as well as protects you from liability for damage. Our guide explains what it covers and what it costs.
Updated 26 November 2024

​What is renters’ insurance?

Renters’ insurance is cover you take out for your possessions and for damage to the home if you’re renting a property. 'Renters insurance' is effectively the same as 'contents insurance' - many insurers advertise renters' insurance but direct you to purchase contents insurance policies. 

We have created this guide to explain renters' insurance and answer the most common questions that renters ask, covering:

Do I need renters insurance?

  1. It depends. If you have valuable possessions that you can’t afford to replace, then renters insurance could be a good idea. 
  2. If you are concerned about being liable for accidentally damaging the home you rent 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 rental property, 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, 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 home or do something similar, you’ll be personally liable for the cost of the damage. This would also be the case if you had renters’ insurance, as policies exclude cover for deliberate damage.

​Renters Insurance - Our view:

  • Even if you’re renting a property from a landlord, you’ll still need renters’ insurance if you want to cover your possessions. This is why renters’ insurance is mainly focused on protecting your home contents.
  • As you don’t own the home, 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 Renters’ Insurance Cost?

The average cost of contents insurance for renters when we arranged quotes for contents insurance policies was $400 to $600. What you’ll pay depends on:
  1. Your address - some insurers assess certain cities or areas to be riskier, and like-for-like comparisons suggested 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 - generally (but not always), the younger you are, the more expensive your policy - so a 22 yo pays more than a 50 yo. 
  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 you have one, your 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 in the last few years, 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 renters’ insurance quotes

If you’re renting and looking for cover, comparing contents insurance policies on MoneyHub is the easiest way to find a better deal. We look at major insurers (and challenger companies) 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.

Five Must-Know Renters' Insurance 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.​

What does renters’ insurance cover?

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 renters 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 renters’ insurance policy?

Like many types of insurance, renters insurance policies have exclusions. These generally include:
  1. Theft of or deliberate damage to your belongings by anyone living in your home
  2. Damage or loss when your contents are in storage
  3. Items valued above the policy limits, unless they have been specified on your policy.
  4. Wear and tear leading to gradual damage
  5. Unforced entry, i.e. if you leave your windows opened and you’re burgled (check the policy as rules do vary between insurers).
  6. High-value items – all renters 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 renters’ insurance policies won’t cover items or belongings used for home businesses. 
  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 with renters’ insurance?

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.

Important – 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, New Zealanders are likely to insure laptops, phones, tablets and TVs.

Important - Get an accurate contents valuation: New Zealanders often undervalue or overvalue their home 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 people?

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?
Renters’ insurance covers shared student accommodation.
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