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Why do I need home insurance?
Not getting insurance for your home is like riding a motorbike without a helmet - it's just not a good idea. You've been slaving away for years, putting away every penny toward your home, so why wouldn't you take the extra step and make sure it's covered against the worst?
If your home was to catch fire, how much trouble would you be in? If a thief stole your expensive jewellery, how angry would you be? If disaster struck, would you actually be able to afford the expenses that come with it?
No? We couldn't either.
That's why home insurance is such an important thing to have. It protects you against everything from fire and storm damage to burst pipes, falling trees, theft and vandalism. Here's a quick breakdown of why you need it:
It protects your house. Your home is usually the most expensive thing you’ll ever buy and the most valuable asset you’ll ever own. Home building insurance provides protection against an extensive range of risks, guaranteeing that you will be able to repair or rebuild from scratch if an unexpected disaster strikes.
It protects your possessions. Whether it's family heirlooms, your expensive dining room set, or even your Xbox, many of us couldn't live without our possessions. The contents of your home aren't just stuff; they’re often your most important and treasured possessions and can hold just as much sentimental value as they do financial worth. Contents insurance ensures that you will be able to repair or replace your possessions if they’re damaged by fire, storm, theft or a range of other insured events.
It's a home loan requirement. If you take out a mortgage to buy a home, most home loan lenders require you to purchase home insurance before they will approve your application.
Quite simply, it gives you the ultimate peace of mind. The biggest benefit of getting cover is the peace of mind and confidence it provides. With the right policy in place, you can rest assured that you will have the financial support you need should loss, damage or some other unexpected misfortune affect your home or contents.
Not sure what you're getting yourself into? That's totally fine! Sometimes it seems that insurance companies try to overcomplicate and confuse their users on purpose. But it's okay. Our guides can help you actually understand home and contents insurance, how it works, and why you shouldn't go without it.
Contents insurance is stand-alone cover for your possessions in the home. This includes jewellery, electronics, carpets, curtains, furniture, appliances, and furnishings. This is a great option for renters or those homeowners who live in an apartment.
This is stand-alone cover for only your home. It also covers other fixtures on your property, such as garages, fences, and sheds. It protects you against a bunch of natural events, such as fire, storm damage, and floods.
Landlord insurance protects your home against theft, malicious damage, loss of rent, as well as natural events like storms, flood, and fire. It's a smart idea if you're renting your home out to strangers.
The situations covered by your insurance will vary depending on the insurer you choose and the level of cover you select. However, the best policies generally provide cover against the following:
Fire. If your home and possessions are lost or damaged due to fire, home insurance can provide financial protection.
Storm. You're covered for loss or damage caused by a storm, including violent winds, hail, snow, rain, thunderstorms, cyclones and tornadoes.
Lightning. Loss or damage caused by lightning, or by a power surge caused by lightning.
Flood. Protects you against loss or damage caused by water that has escaped the normal confines of a lake, river, creek or dam, or a number of other bodies of water. Many policies only offer flood cover as an option, not as an automatic inclusion.
Earthquake and tsunami. This benefit ensures that you are covered against loss or damage caused by an earthquake or tsunami.
Water and oil leaks. When water or oil escapes from gutters, pipes, baths, toilets, appliances or a range of other household items, you're covered for the resulting loss or damage.
Theft or burglary. Covers you against loss or damage caused by theft, attempted theft or burglary.
Malicious acts and vandalism. If your home or contents are damaged due to vandalism or a malicious act, your policy can offer financial protection.
Riots or civil commotion. Financial protection in the event that a riot, civil commotion, or industrial or political disturbance results in loss or damage to your home.
Accidental glass breakage. This covers accidental breakage of items such as window glass, skylights, fixed mirrors and light fittings, sinks, basins, baths, toilets and glass cooktops.
Explosion. Loss or damage caused by an explosion, as well as a landslide or subsidence that occurs as an immediate result of an explosion.
Impact damage. This benefit covers you against impact from objects such as falling trees, power poles, TV antennas, motor vehicles and meteorites.
How to make sure your policy fits you like a glove
So is home insurance worth it? Take a moment to think about how you would cope financially if your home and everything you own was completely destroyed. Sure, it’s a worst-case scenario and one that you’ll hopefully never have to deal with, but would you have the financial means to start again from scratch following an unexpected disaster? Even a burst pipe or a thief could set you back thousands of dollars.
You've spent all these years turning your house into a home, so it just makes sense to put aside some cash each year and make sure that it's protected no matter what life throws at you. With the right level of protection in place, you can be sure that you won’t end up out of pocket if your home or contents are damaged or totally lost. Home insurance gives you peace of mind.
Step 1: Evaluate how much your home and possessions are worth. When you take out home insurance, you give a dollar value to your insurer for how much your home is worth. The cost of home insurance for you will depend on this figure. Insure your house for too little and you risk being underinsured and out of pocket come claim time. Overinsure your house and you'll pay higher premiums.
Step 2: Determine what kind of cover you need. Do you want to cover your home and everything in it? Then opt for home & contents insurance. Only want to cover your contents? Just your building? Figure out what kind of things you want to cover and find the policy that fits those needs. For example, a policy that offers total replacement cover might cost more but will also ensure you won't be underinsured. You'll also pay more if you want to get covered for accidental damage, but if you've got toddlers running around this is a no-brainer and could save you more cash in the long run.
Step 3: Compare insurers. Once you've figured out how much your home and contents is worth and you know what policy you're after, start comparing insurers. Be sure to look at what the policy features as well as price.
So you've just bought your new home. Before you pop the champagne, make sure you're insured in case that cork decides to go straight through your wall.
It's a good idea to have building insurance in place when you exchange contracts. People used to get cover notes for the period between exchange and settlement, however, these are no longer offered. What you can do, however, is take out insurance and request a start date up to 40 days in the future.
If you require insurance in place in order to get a home loan, all you need to do is send a copy of your insurance contract to your lender in order for them to release the funds.
It's also a good idea to get your contents insurance organised before you move, as this will include damage or loss of your possessions while in transit.
Unfortunately, there’s no "one size fits all" answer that explains exactly how much cover is enough for your home and contents. You need to carefully consider your insurance needs to work out what will be adequate protection. According to research from the Insurance Council of Australia, 83% of Australian homeowners and renters don’t have enough insurance to cover their home and contents. That’s an alarmingly high figure, so it’s essential that you take the time to think about your requirements before choosing a policy. Ask yourself:
Unless you have sufficient protection to cover the cost of replacing everything following an unexpected disaster, you will be under-insured, and the financial consequences can be disastrous. Many insurers offer handy online calculators to help you work out how much home and contents insurance cover you need. These useful tools are a great place to start, but an independent valuation will be much more accurate.
You should also remember to consider the benefits of a particular policy: does it provide cover for all the risks you need protection against? Do you need to add extra-cost options so you have a suitable level of cover? If you take time to crunch the numbers and carefully examine your needs, you’ll be able to select the right amount of cover for your home and possessions.
As well as checking what a policy covers, it’s also essential to check the PDS for a list of general exclusions. These are situations in which an insurer will refuse to pay your claim. Common circumstances under which you will not be covered include the following:
Our guide to common home insurance exclusions also outlines a range of situations when your insurer will not offer any cover. You should also read the PDS closely as well to ensure you don’t get any nasty surprises.
Cost
The cost of insurance differs substantially depending on where you live, what kind of house you live in, your age, as well as a bunch of other factors.
Whilst there's no universally cheapest home insurance company, sometimes shopping around can give you the best bang for your buck.
We found a difference of $1,335 a year between the least and most expensive home insurance policy for the exact same home. You can easily find a cheaper policy by just shopping around.
| Monthly | Yearly | |
|---|---|---|
 | $97.65 | $990.07 |
 | $180.71 | $1,936.26 |
 | $195.09 | $1,934.26 |
 | $98.41 | $999.97 |
 | $116.18 | $1,394.08 |
 | $89.59 | $977.17 |
| Monthly | Yearly | |
|---|---|---|
| $166.48 | $1,690.22 |
| $264.90 | $2,838.22 |
| $288.07 | $2,864.10 |
| $167.85 | $1,707.11 |
| $195.21 | $2,342.40 |
| $140.25 | $1,529.88 |
Like so many other things in life, when buying home insurance you really do get what you pay for; if you choose a cheap policy with an insufficient level of cover, the results could be disastrous. Remember to look past the price of a policy to the features and benefits it offers to determine whether you are getting true value for money. There are also several other things you can do to lower the cost of your policy, such as the following:
Compare Australian home insurance policies
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Bushfire victims are being warned of another potential danger, as scammers often strike in the wake of a natural disaster. Read more…
Local tradespeople to get the jobs when rebuilding in bushfire devastated communities. Read more…
Where to find assistance when the bushfire crisis has left you short of funds. Read more…
*Disclaimer:
*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
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i want home insurance ‘without’ contents. does anyone know of an insurer.
Hi Tracey,
Thanks for your comment and I hope you are doing well.
Yes, you can find home insurance for only your home by viewing this page about BUILDING INSURANCE. As it says above, this is a stand-alone cover for only your home. It also covers other fixtures on your property, such as garages, fences, and sheds. It protects you against a bunch of natural events, such as fire, storm damage, and floods.
You will find a table that compares the features and benefits of each home insurance provider in terms of what it does and doesn’t cover. This way it will be easier for you to see which provider fits you best. If you need further help, a quick guide on how to compare home insurance is also stated on the page. As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
I hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki
I been trying to look for a home insurance for me rental property but it was declined due to the following reasons:
1. it is a rental property and we don’t know when we can have a tenant to occupy the property
2. Its still under renovation/construction but water tight now.
can you please help me find a cover for my property?
Hi Andrew!
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
Sorry to hear that you’ve been declined for home insurance. Perhaps you may want to look at Landlord Insurance. You can compare and choose insurers as well as information on coverage, benefits and the difference between home insurance and landlord insurance.
However, many insurers won’t cover you if your property will be unoccupied for over 30 days. It will be considered unoccupied and you may void your home insurance. Each provider imposes its own time limit on the maximum period you can leave your home unoccupied and still expect full coverage under your policy. Some insurers have a maximum unoccupied limit of 60 days, others extend this limit out to 90 days, but some companies require notification if you’ll be away for more than 30 days.
Check the product disclosure statement (PDS) for the limit imposed by your insurer. If you exceed this limit, one of two things will happen:
The insurer may impose an additional excess on any claims that arise while your home is unoccupied.
Your policy may be cancelled.
However, it may be possible to contact your insurer and arrange for home insurance cover to remain in place for the entire time your home is unoccupied.
For more information, you may view this page.
Please note that we’re a product comparison website and we hold no affiliation with any company we feature on our site. We provide general information on products to assist you in your buying decision process hence we cannot recommend product / service that is rightfully fit for you.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki
If I purchase a property, do I need any form of insurance prior to settlement? Deposit insurance??
thanks
Hi Peter,
Thanks for reaching out.
That would be the Lenders Mortgage Insurance and it will depend on how much deposit you are able to make.
LMI is an upfront charge you will pay if you borrow over 80% of your property’s purchase price or value when buying a home or investment property.
Because LMI allows many borrowers to purchase a home with as little as a 5% deposit, it’s not just a fee but also a tool. You may view this page to find out what LMI is, how it works, ways to avoid LMI, and answers to commonly asked questions.
Cheers,
Joanne
Need insurance that will cover our home year round, we live in the home 6 months a year and overseas 6 months a year, during which time we will Air BNB which we also need to be covered for. Would prefer complete replacement cover. Getting so many varying quotes and getting a bit lost!
Hi ET,
Thank you for your question.
finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
You may find ShareCover page helpful.
All the best,
Zubair
Who supplies Insurance to new incomplete dwellings, without a final certificate being lived in prior to completion.
Hi Mick,
Thank you for your question.
finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
You will need to contact home insurers directly about this matter.
All the best,
Zubair
If your part of a body corporate, why is it so hard to get home and contents insurance?
Hi Sarah,
Thanks for getting in touch. finder.com.au is a comparison service and we are not permitted to give personalised financial advice. You may find our strata insurance article helpful. On this page, you’ll also find an inquiry for our brokers, who may be able to help you with your question.
All the best,
Zubair
I have cracks inside my home high in the walls near where the walls meet the roof, also cracks on corners,and some in the cyprock ceiling, and
walls are brick and render walls, building inspector told me it was from the plats the roof sits on from high winds shifting it, been insured for over 30 years with the some insurer, they have rejected to pay my claim, what should I do?
Hi Jack,
Thanks for getting in touch. If you feel that you’ve been unfairly assessed, you can go through your insurers internal dispute resolution process. If after that you’re still unsatisfied, you can contact the ombudsman.
Cheers,
Richard
Why do you only show Hollard underwritten policies, plus you, under house and contents?
Do you have a financial connection to Hollard?
HI Bruce,
Thanks for your question. While Hollard is the underwriter of Woolworths insurance products, finder.com.au does not have a financial connection with Hollard. Out of our panel of home insurers, only Woolworths is underwritten by Hollard.
I hope this was helpful,
Richard
If I’m renting out my property do I need both home insurance and landlord insurance?
Hi Cheryl,
Thanks for your question. finder.com.au is a comparison service and we are not permitted to provide our users with personalised financial advice. Landlord insurance covers many aspects your home (building) insurance wouldn’t cover a may include cover for home contents (your personal contents and not that of the tenant), storm damage, loss of rent and malicious damage. Every policy is different so you should review the policy document carefully before getting any cover.
I hope this was helpful,
Richard
Hi, buying a holiday home on the coast where I intend to reside 2-3 days a week. Also expect to rent out occasionally for short term holidays (Easter , XMAS, etc). Is normal Home & Contents policy OK in this situation?
Hi Jack,
Thanks for your question. finder.com.au is a comparison service and we are not permitted to provide our users with personalised financial advice. If you are looking to rent your policy using a holiday letting service such as Stayz or Airbnb, you may find ShareCover interesting.
I hope this was helpful,
Richard