Recent figures from State Insurance indicate that electronics account for 63% of contents claims among young renters, with theft being the leading cause of high claim values.
For State Insurance customers under 25, some claims for stolen items have surpassed $20,000, particularly in cases of burglary and theft.
Wayne Tippet, State’s executive general manager of claims, noted instances where young tenants lose entire bags of tech, including laptops, handbags, and phones – all highly portable and easily stolen.
“We’re seeing young tenants claim for stolen laptop bags containing all their tech, handbags, wallets, and phones – all items that can be quickly swiped by thieves,” he said.
Additionally, a notable number of claims arise from items stolen out of vehicles parked in places like gyms and university car parks.
In response, State recently launched a campaign focused on helping young renters understand the value of their belongings and how best to protect them.
Tippet said that while many renters don’t own a full household of items, the cost of replacing basics like a bed, laptop, or clothes can be significant in today’s market.
“It’s better to insure our items once rather than buying them twice,” he said.
Insights from State’s contents valuation tool, Tally, show that the average New Zealand household contains approximately $14,212 in tech-related items.
Popular claims among young renters tend to include smartphones, laptops, electronic accessories, and clothing. Claims for accidental damage are the most common, followed by burglary and theft, misplacement, and damage from weather events.
While the frequency of contents claims has been stable over the past three years, State observed a 67% rise in the average claim cost last year, a shift that Tippet attributes to both the increasing value of everyday items and the growing impact of loss events, such as storms, fires, and thefts.
“We all know that the cost to repair our prized items has increased, and this hits New Zealanders in the pocket, too, especially for lower-income households. So, it’s important to find ways to minimise the financial strain that these unexpected events can cause,” Tippet said.
Tippet emphasised the importance for young renters to consider protecting their personal property even if they don’t own the furniture or fixtures in their rental home.
State Insurance also addressed some frequent questions from renters under 25 regarding their coverage, which insurance companies and brokers could share with their clients:
Yes. Even if young renters primarily own only essentials like a laptop or bed, contents insurance ensures they are covered for the replacement of these items in case of loss or damage.
Generally, contents policies extend to personal belongings temporarily removed from the home, such as phones or laptops taken from a vehicle parked outside.
Coverage is specific to the policyholder’s belongings, meaning renters only need to list and insure their own items, not those of their flatmates or landlord-provided furnishings.
Most policies will cover new purchases automatically, though certain high-value items may need to be listed specifically to ensure full coverage.
Contents insurance often includes liability protection for accidental damage to other people’s property, including rented items.
For example, if a shopping cart damages a parked car or a renter accidentally damages part of their rental home, the liability cover may apply.
State Insurance data shows that common claims for young renters include items such as mobile phones, laptops, electronic accessories, and clothing.
In separate findings, AMI Insurance has identified a specific trend within New Zealand’s burglary claims: the theft of water heating units, which can lead to significant expenses due to the water damage left behind.
According to Paula ter Brake, AMI’s executive general manager for consumer brands, these incidents can result in repair costs exceeding $200,000.
AMI’s HomeHub team, which assists with home repairs, has noted that exterior water heaters and copper pipes are frequent targets, likely due to the resale value of copper. Burglars can often remove these items without triggering alarms, and daytime thefts are increasingly common as more New Zealanders return to workplaces after pandemic-related lockdowns.
