What you need to know to help you find affordable and comprehensive home insurance in Tasmania.
Covering an area of just over 68,000 square kilometres and with a population of around 500,000, Tasmania is the smallest state in Australia. But what it lacks in size it makes up in pristine wilderness, a laid-back lifestyle and some of the best food and wine anywhere in the world.
If you’re a Tasmanian homeowner or preparing to buy your own home, it’s essential that you take out adequate home insurance cover. Read on to find out how you can choose the right policy for your home.
Want to find the best* home insurance policy for Tasmania?
Why do I need home insurance?
There are many reasons why home insurance in Tasmania is so important, including:
- Stuff happens. From lightning strikes and hailstorms to bushfires, burglaries, burst pipes and freak accidents, disaster can strike at any time. There’s no way of predicting what the future holds, so home insurance offers critical protection against the unexpected.
- Home loan requirement. Some lenders will not approve your home loan application unless you have already purchased an adequate level of home insurance cover.
- Financial protection. You’ll probably never buy anything anywhere near as expensive as your home, so it makes excellent financial sense to protect the largest investment you’ll ever make. With the right home insurance cover in place, you can enjoy the peace of mind of knowing you will be looked after financially even if your home and everything you own is destroyed.
- Cover for a broad range of risks. Fire, storm, hail, earthquake, impact damage, theft, vandalism and even your legal liability – the best home insurance in Tasmania covers a huge range of risks and events.
What should I consider when purchasing home insurance in Tasmania?
It’s also essential to consider the specific risks faced by Tasmanian homeowners.
Bushfire is a constant threat to some properties during the summer months, while strong winds can wreak havoc in coastal areas.
Severe floods hit northern Tasmania in 2016, so it may be a good idea to ensure that you have flood cover.
Before choosing home insurance, make sure you carefully consider exactly what you want in a policy. Do you need standalone building cover, contents only cover, or the comprehensive protection of combined home and contents insurance? How much cover would you need to fully replace all your contents and rebuild your home?
What type of home insurance can I get in Tasmania?
There are three main types of home insurance available:
- Home insurance. Sometimes referred to as building-only cover or home building insurance, this type of policy protects your home and any permanent fixtures at your property.
- Contents insurance. Contents-only insurance protects your personal possessions and household items against fire, storm, theft and much more.
- Home and contents insurance. Combined home and contents cover ensures that your home and all your personal possessions are covered.
It’s also worth pointing out that there are some home insurance policies specifically designed to provide protection for landlords, while there are contents-only policies designed for renters.
How much does home insurance cost in Tasmania?
How much you pay for home insurance in Tasmania varies depending on a number of factors, including:
- Your level of cover. The higher the level of cover you select, the more you will have to pay for your policy. Adding optional extras to your policy, for example, accidental damage cover or fusion cover, will also increase the premium.
- Where your home is located. Homes in storm-prone areas, for example, may be more expensive to insure than homes in other regions. If you live in a suburb with a high rate of burglaries, you can also expect higher premiums.
- The features of your home. The materials used to construct your home affect the likelihood of your home suffering damage, and therefore affect the cost of premiums – for example, brick homes are cheaper to insure than weatherboard homes, while a home with a back-to-base security alarm should be cheaper to cover than the same home without any security protection.
- Discounts. Some Australian home insurers offer discounts for loyal customers, for seniors and for customers who hold multiple policies with the same insurance provider.
What insurers can I access in Tasmania?
Finder.com.au’s panel of insurers includes some of Australia’s leading home insurance providers, all of which offer cover to Tasmanian homeowners. These insurers include:
Are there any exclusions and additional costs I should be aware of in Tasmania?
Before choosing a policy, take a close look at any general exclusions that apply. Some common exclusions are:
- No cover if you fail to keep your home in good condition, for example, if you fail to repair a leaky roof
- No cover if your home is left vacant for more than 60 days, such as if you’re overseas on an extended holiday
- No cover for any part of your home that is used as a business
- No cover for damage that occurs as a direct result of renovations or extensions
- No cover if you fail to properly secure your home
In addition, make sure you’re aware that duty is payable on Tasmanian home insurance premiums at a rate of 10%.
* The offers compared on this page are chosen from a range of products finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms "Cheapest", 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.