Recent research from RACQ Insurance reveals that a majority of Queensland renters are not protecting their belongings, with 78% lacking contents insurance and 21% unaware of its existence. This situation is particularly concerning in a disaster-prone state like Queensland.
Trent Sayers, chief executive insurance at RACQ, pointed out that renters are just as susceptible to theft and natural disasters as homeowners.
"We know that Queensland renters are doing it tough. Many are struggling with expenses and insuring their contents drops off the priority list. But when you're renting, you're just as likely as a homeowner to be caught in a storm or be impacted by theft,” Sayers said.
Over the past three years, RACQ has handled 1,279 contents claims from renters for incidents including storms, floods, fires, and theft, with the average claim costing $8,107. For those considering contents insurance, the primary barriers are a perceived lack of valuable items to insure (26%), the cost (21%), and a lack of knowledge about it (8%).
Sayers emphasized that replacing essential items without insurance can be financially burdensome, as costs for furniture, appliances, clothing, jewelry, and technology can quickly add up.
“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,” Sayers said.
The study also found that younger renters are the most unaware of contents insurance, with 59% of those aged 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. 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,” Sayers said.
