Do Tenants Need Their Own Insurance?

While landlords have insurance to protect their properties, tenants should also consider taking out insurance to cover their own belongings and liability. Here’s what you need to know.

Damage to Property
Under the Residential Tenancies Amendment Bill (2019), tenants are responsible for damage they, their guests or pets cause. They may need to pay either four weeks’ rent or the landlord's insurance excess, whichever is lower.

Landlord Responsibilities
Landlords must provide tenants with their insurance information, including whether the property is insured and what the excess is. This must be included in the tenancy agreement, and any changes in insurance details must be communicated promptly. Landlords have 21 days to provide insurance details, once requested.

Personal Insurance for Tenants
A landlord's insurance doesn't cover a tenant’s belongings. Tenants should consider taking out contents insurance, which may also include personal liability coverage for accidental damage to the rental property.

Renters' Insurance vs Tenants Liability Insurance
Renters' insurance is often the same as contents insurance. Generally, this is a broad all-in-one policy which includes the tenants’ personal property along with personal liability. It is essential to check that the value of your belongings is covered along with the extent of cover for liability. Tenants liability insurance protects against accidental damage of the property, fixtures and fittings in the rented property.

Earthquake-Damaged Properties
If you're renting an earthquake-damaged property, research carefully—some insurers may not cover it.

Damage and Disputes
If repairs are needed, both tenants and landlords can issue a 14-day notice for the other party to fix the problem. For unresolved issues, the Tenancy Tribunal can be contacted for further action.

Taking out the right insurance ensures peace of mind for tenants in case of accidents or damage.