What you need to know to help you find the right home insurance in Victoria.
Are you looking for home and contents insurance in Victoria? You’re not the only one. With a population of 6.1 million, Victoria is the second-most populous state in Australia and growing faster than anywhere else in the country.
Home and contents insurance protects your home and your treasured possessions against everything from accidental damage to fires, storms, floods, theft and vandalism. However, before choosing a policy, it’s important to be aware of the unique risks faced by Victorian homeowners and how to find an insurer that provides all the cover you need.
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Why do I need home insurance?
There are plenty of reasons why you need home and contents insurance in Victoria.
- Protection for your home. You’ll probably never spend more on anything else in your life than you do on your home, so it makes sense to protect such a costly investment.
- Protection for your possessions. Your belongings are more than just stuff; they’re important to you for a variety of practical and sentimental reasons, and contents insurance is the best way to protect them.
- Accidents happen. Pipes can burst, trees can fall down and natural disasters can wreak a trail of destruction. Accidents can happen at any time, so home insurance is an easy way to protect yourself against the unexpected.
- Home loan necessity. Some lenders won’t let you take out a home loan unless you have an adequate level of home insurance cover in place.
- Peace of mind. Taking out home insurance means you don’t have to worry. No matter what the future may hold, you’ll be financially protected against any nasty surprises.
What should I consider when purchasing home insurance in Victoria?
The right type and level of cover for you may vary substantially depending on where you live in Victoria.
One of the biggest risks facing rural properties in Victoria is bushfire, while some towns on the banks of the mighty Murray River face an increased risk of a flood. If you’re the owner of an apartment in the CBD, you might be more likely to face theft and break-ins or water damage if your upstairs neighbour has plumbing problems and your apartment is flooded.
You’ll need to consider a wide range of factors when deciding on the best home insurance policy for your needs. First, you’ll need to consider whether you want standalone home or contents cover, or whether you want to combine the two and enjoy the benefits of comprehensive cover.
Next, think about your specific cover requirements. How much cover do you need? What risks do you need to protect your property and possessions against? How much would it cost to replace everything you own if it were completely destroyed?
By taking your unique risks into account, you’ll be able to find a policy that matches your needs.
What type of home insurance can I get in Victoria?
There are three home insurance options available to Victorian homeowners:
- Home insurance. Also known as building insurance, this type of policy protects your physical building from loss or damage caused by fires, storms, impacts, theft and a variety of other risks.
- Contents insurance. Contents insurance protects your furniture and possessions against loss or damage due to an extensive range of events.
- Home and contents insurance. Combining all the cover of the two policies listed above, a home and contents insurance policy provides a high level of protection for your building and possessions.
How much does home insurance cost in Victoria?
The cost of home insurance in Victoria varies depending on a number of factors:
- Where you live. Location can play a big part in determining the total cost of your premium. For example, someone who lives in a flood-prone area may have higher premiums than someone who doesn’t, while a home in an area with high burglary rates will cost more to insure than if it was located in a “safe” area.
- Your level of cover. The higher the sum insured, the more you will pay for insurance. Adding optional extras to your policy will also increase the cost.
- Your claims history. If you have few or no previous home insurance claims to your name, you could enjoy lower premiums.
- Your home. Certain features of your home can also contribute to how much it costs to insure. For example, some roofing materials can withstand a hailstorm better than others, while having a back-to-base security alarm installed will deter thieves and lower premiums.
- Any discounts that apply. Some insurers reward long-term customers with loyalty discounts, while others offer multi-policy discounts to customers who hold more than one policy.
What insurers can I access in Victoria?
Most home insurance providers are not state specific and provide cover for homes all around Australia. finder.com.au’s panel of home insurers features some of Australia’s leading home insurance providers that offer cover in Victoria:
Are there any exclusions and additional costs I should be aware of in Victoria?
Before you choose a home insurance policy, make sure you’re aware of any general exclusions that apply. The following are some common home insurance exclusions:
- No cover if your home is used for illegal or criminal activity.
- No cover if you leave your home for an extended period of time, such as 60 continuous days.
- No cover if you fail to maintain your home in good condition.
- No cover for bushfires within 72 hours of cover starting.
- No cover if you fail to take reasonable steps to secure your home.
Finally, when you do take out home and contents insurance in Victoria, make sure you’re aware that a 10% duty charge will be included in your premium. An additional Fire Services Levy used to apply to all policies, but this was scrapped in July 2013.
* 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.
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