When most people think of renters, they probably imagine university students who have just moved out of the family home and have only a few possessions. But that’s no longer the case.

There has been an almost 10 per cent increase in people aged 35 to 54 renting in the past few decades. It’s likely these people are well established, might be starting families and have accumulated a lot of possessions.

The number of South Australian households renting has also increased by about 10 per cent over that same period. And despite this, only 52 per cent of SA renters have contents insurance. Here’s why the other 48 per cent are putting themselves at risk.

Picture this: You’re renting and you don’t have contents insurance. After a busy day at work, you arrive home to firefighters and police cars. They’re parked outside your home, or what’s left of it. A fire has destroyed the house and all your possessions.

Thankfully the landlord has insurance, which will cover the cost of rebuilding the house. But because you don’t have contents insurance, your possessions weren’t covered when they were destroyed by the fire. Now, you’ll need to start from scratch and replace them yourself. You don’t want to put you or your family in that situation.

Why renters need contents insurance

Many renters believe their landlord’s insurance will help replace possessions if they’re lost, stolen or damaged. However, this isn’t the case. If you want to cover your personal belongings, you’ll need to take out a contents insurance policy. This will cover possessions you have in the house.

What contents insurance covers

Look around at all the possessions you have in your home. It’s likely you have a fridge, washing machine, television, computer or tablet, jewellery, and the list goes on. If you’re renting and purchase contents insurance, these items may be covered if they’re lost, stolen or damaged. Contents insurance may also cover things like food spoilage if your fridge or freezer breaks down or there’s an extended power outage.

In some cases, the policy may include legal liability coverage. If someone is injured – maybe your dog bit a child – your policy may cover the medical bills and even the court costs if you’re sued.

What the owner is responsible for

It can be difficult to get an accurate picture of everything you own. A good way to make sure you’ve included everything is by compiling a room-by-room inventory. Estimate the value of your contents in each room. Include everything from clothing and electronic devices to curtains and kids’ toys.

This product is issued by RAA Insurance Ltd ABN 14 007 872 602. AFSL No. 232525. Limitations and exclusions apply. Consider the Product Disclosure Statement and Target Market Determination available from the RAA website when deciding whether to purchase this product.