Do you need renters insurance in Australia?

Renters insurance, often referred to as contents insurance for tenants, is not legally compulsory in Australia, meaning tenants are never strictly mandated by law to purchase a policy before moving into a rental property. However, purchasing coverage is heavily recommended because a landlord's building insurance policy exclusively covers the physical structure of the dwelling and landlord-owned fixtures, leaving all personal belongings—such as laptops, phones, furniture, and clothing—completely unprotected. If a fire, theft, or flood occurs, the tenant must bear the entire financial burden of replacing their own items out of pocket unless they maintain an active renters contents policy. Furthermore, many contents policies include valuable personal liability insurance, protecting tenants if they accidentally injure someone or cause damage to the landlord's property.