Real Estate
31 July, 2024
Insurer warns against lack of contents cover
THE vast majority of Queensland renters were putting themselves at risk because they were not protecting their precious belongings, according to new research from RACQ Insurance.
The study found that 78 per cent of Queensland renters had not insured their contents and 21 per cent of uninsured people had never even heard of contents insurance.
Insurance chief executive Trent Sayers said for a disaster-prone state, the alarming trend potentially exposed thousands of residents to financial and emotional risks.
He said in the event of theft or disaster, uninsured renters would have to bear the full cost of replacing their belongings.
“We know that Queensland renters are doing it tough. Many are struggling with expenses and insuring their contents drops off the priority list,” Mr Sayers said.
“But when you’re renting, you’re just as likely as a homeowner to be caught in a storm or be impacted by theft.”
In the past three years, RACQ received 1279 contents claims from renters related to storm, flood, fire or theft, with the average cost per claim at $8107.
For those who had considered contents insurance, the main barriers were a perceived lack of worthy items to insure (26 per cent), the cost (21 per cent), or not knowing enough about it (8 per cent).
“Replacing items such as furniture, appliances, clothing, jewellery and technology can add up quickly and become a significant financial cost,” he said.
“We understand that adding another expense can be daunting however there are some options to customise your coverage which may help reduce the price of contents insurance.
“The cost needs to be weighed against the potential financial impact that could result from loss or damage to personal belongings.”
For the 21 per cent of people who had not heard of contents insurance, it was most evident among younger renters, with 59 per cent of those aged between 18-34 falling into this category.
“This age group, often new to the responsibilities of independent living, may not fully understand the implications of not being insured,” Mr Sayers said.
“In the event of a disaster like flooding, if your personal belongings are damaged, destroyed or stolen, contents insurance may help to repair or replace them with brand new items.”
