So, they’ve grown up, in what can sometimes feel like a blink of the eye, and they’re off flatting. It’s a rite of passage for teenagers. It’s exciting, new and even a little bit scary for you and them.
There’s a lot to think about and organise, as they launch into this new life chapter. And one thing that is often overlooked is contents insurance.
It may seem unnecessary. In fact, your teenager might even be heard to say “I don’t have much stuff. I’ll be fine.” But the reality is that it is not only about what they own but they could be held liable for expensive damages.
They Likely Own More Than They Think
Add up the laptop, phone, headphones or ear pods, furniture for their room, clothing, jewellery, maybe a bit of sports equipment – and suddenly you’re looking at thousands of dollars’ worth of belongings.
And what could possibly go wrong?
Well, what if there is a burglary at their flat, or they lose their phone at a party! The bike they’ve used as their transportation to and from Uni could easily get nabbed from outside the lecture hall and then there’s the scenario that sees them leaving their laptop, headphones, tablet, tennis racket, running shoes, 18th birthday watch, sunglasses and jewellery case in their car and voila, the window is smashed and their possessions are gone.
Without contents insurance, all of that value can disappear in an instant, leaving them without essentials — and very possibly calling you for financial help. Contents insurance provides a safety net, turning what could be a huge financial setback into a manageable claim.
It's not Just About the Stuff – Liability Matters Too
Contents insurance isn’t just about replacing their belongings. One of the most valuable (and often overlooked) parts of a policy is personal liability cover.
Shane Riley
Domestic Broker - Fire & General
Penberthy’s Shane Reilly, who has worked as a Domestic Broker for over 15 years, shares his advice.
Most policies in New Zealand also include legal liability cover, which is arguably one of the most important benefits for a young person living in a rental property. This protects them if they accidentally cause damage to someone else’s property—like accidentally flooding the property or, worst case, starting a fire.
The reality is, flatting life comes with risks — and accidents do happen. Yes, they’re now mini adults but their carefree approach could lead to big problems.
Maybe they leave a pot on the stove too long and cause fire or smoke damage. What if they accidentally back their car over their flatmate’s bike, or reverse into the garage door (oops, should have checked that first)? An overflowing bath could easily damage the bathroom flooring, and then there’s the phone call to say they’re in the bad books with their flatmate because they dropped a mug of coffee on their laptop and it’s fried.
Liability cover can save your teenager from being liable for potentially massive repair bills, or you. It’s essentially peace of mind for the both of you.
An Affordable and Smart Move
While a young person might think they can’t afford insurance, more often than not it will be a lot cheaper than the possible cost of covering accidental damage to the landlord’s property.
In some cases, you may be able to add your teenager to your existing contents insurance policy when they are at boarding school or living away from home attending a Polytech or university, which can be a very cost-effective way to get them covered while they’re away from home. However, it’s important to check the specific policy details and limits to ensure their belongings are adequately protected.
Whether they acknowledge it or not, sorting out their contents insurance can also be an opportunity for them to appreciate financial responsibility. It helps them understand the importance of protecting what they (or you) have worked hard to buy.
The Bottom Line
If you are considering contents insurance for your flatting teenager, it’s important to discuss with your financial adviser, as each policy is different.
Making sure your teenager is covered with contents insurance, so they’re not one incident or small mistake away from a major financial setback, is a simple and smart step that can prevent major headaches – for them and for you.
Because while they’re learning to budget, cook, and live independently, knowing they’ve got the right protection in place helps everyone sleep easier at night.
Get suitable advice, protection & support for what matters most to you.
Disclaimer: The information in this article is for general purposes only and doesn’t constitute financial, legal, or professional advice. Please consult one of our financial advisers or brokers for advice tailored to your specific situation.
