Home and Contents Insurance

Home and Contents insurance in Australia covers both the structure of the residential property and belongings like furniture, electrical goods, personal belongings etc. Home and contents insurance is not mandatory in Australia, however if taking out a loan for purchasing a property, many banks will make it a requirement.

There are many different insurance providers, each having many different products, including packages specifically for landlords and tenants. Most policies can be paid annually, half yearly or monthly, however some insurers will charge extra for monthly payments.

Home Insurance

Also known as building insurance, this is cover for residential properties, its fixtures, fittings and home improvements. In general an home insurance will cover the property insured for damages related to fire, theft, attempted theft, vandalism, flood and events like storms etc. The amount the home is insured for is based on the amount it would cost to rebuild the property, not its sale price.

Most insurance providers will include all permanent structures on the property used for domestic purposes as a part of home. For example, TV antennas, paved paths and driveways, clothes lines, satellite dishes, built in barbeques, fixed appliances which are permanently connected to the electrical, gas or plumbing systems such as air conditioners, dishwashers, fans, hot water services, light fittings, room heaters and stoves.

Home insurance often includes or can be extended to include a cover for other buildings and structures on the insured property like garages, sheds pools and fencing etc.

In most cases when renting, the insurance of the building is the owner’s responsibility but always check before finalising the rental contract

Contents Insurance

This is cover for personal belongings and furnishings. A contents insurance can be taken out to cover new for old replacement, cover for your furniture, furnishings, household goods, electrical appliances, clothing and personal belongings including valuables like Jewellery and electronics against the insured events above.

Some policies may only cover items up to a certain amount and not their actual cost. You may want to have expensive jewellery, works of art and antiques professionally valued and insure them separately.

A replacement policy will pay for the cost of replacing items with brand new ones and is usually more expensive to purchase. Wear and tear policies, which are a cheaper option, will pay the actual cost of the items with an appropriate reduction that takes into account the wear and tear placed on the items.

Though contents insurance covers only the objects kept at the insured property, some providers give the option of extending the cover anywhere in Australia and New Zealand for loss or accidental damage to the valuables and personal possessions.

If you work from home some policies may not cover the cost of replacing items used for business. You may need to look at taking out separate insurance cover for your home office.

Before taking out the policy it is advised to check for

• Any specific exclusions that in particular circumstances the policy will not cover. These could be damage caused by termites or flood, damage caused to gates or fences by ways of a tree falling on them. In most cases accidental damage, damage caused by pets and/or theft if you sublet your property is not covered.
• Excess costs you may be expected to pay after putting in a claim which then doesn’t cover the actual cost to rebuild or repair.
• Whether the property’s state of repair will affect the claim amount.

Always Remember

Most policies will need the insured to be able to prove ownership and costs before claiming. This can be done by keeping receipts for purchasing the items, keeping receipts for having items repaired and photographs or videos.

Keep the insurance policy up to date and inform the insurance provider if making any improvements or alterations to the property – eg install insulation or security measures, or undergo renovation.

If planning to build, renovate or extend a property always talk to the insurance providers first to make sure if they provide cover for damage and theft during construction – eg theft of work tools.

Popular Home and Content Insurance providers in Australia

Here are some of the popular home contents insurance providers in Australia:

1. RACQ
2. NRMA Insurance
3. Budget Direct
4. QBE
5. Bupa Home Insurance
6. AAMI Home Insurance
7. Allianz Home Insurance
8. Youi Home Insurance
9. Suncorp Home and Contents Insurance
10. HCF Home Insurance

When choosing the best home contents insurance provider in Australia, it’s important to consider factors such as:

• Coverage level: Ensure the policy covers your specific needs, such as accidental damage or high-value items.
• Price: Compare premiums and excess options to find a balance between affordable coverage and adequate protection.
• Customer service: Look for insurers with a strong reputation for customer service and claims support.

Each insurer offers unique benefits and features, so it’s advisable to compare multiple options using comparison websites or by contacting the providers directly to find the best deal for your situation.