Assisted living insurance

What is assisted living contents insurance?

Assisted living contents insurance is basically a scaled-down version of apartment cover. Similar to anyone living in apartments, people in assisted living residences don't own the property itself, and therefore don't need building insurance. However, a number of people in assisted living establishments have fewer personal belongings than people in apartments as many of the furnishings and fixtures belong to the facility.

What is covered under assisted living contents insurance?

At the moment, Apia is the only Australian brand that offers assisted living insurance. According to their PDS, you are covered for up to $1,000 per item for items and belongings that you own and keep at your residence. These include:

• Furniture and furnishings
• Household goods, clothing, leisure/sporting equipment and other personal effects
• Medical equipment and motorised wheelchairs/mobility scooters that do not require registration
• Belongings that you normally wear or carry (but only when they are kept in your dwelling)
• Portable electronic, photographic and optical equipment and accessories

If you have items that you want covered when you carry them outside of your residence, you also have the option of individually insuring these as add-ons to your assisted living contents cover. These belongings can include:

• Handbags, wallets, jewellery and watches
• Phones, laptops and tablets
• Sporting equipment (but not while in use)

What is not covered by assisted living contents?

Assisted living contents insurance does not cover all types of belongings. Items that are not covered include:

• Cash, credit cards and vouchers
• Audio and video media, including hard copies
• Motor vehicles
• Tools

There are also a number of general exclusions where your claim may be denied for items that would typically be covered under normal circumstances. Examples include situations where you’ve broken the law, destroyed an item while cleaning with chemicals or failed to install safety precautions (such as smoke alarms) where required by law. Make sure to read the policy PDS to find out exactly what's excluded.

What events am I covered for with assisted living insurance?

Assisted living contents insurance should cover you for the following:

• Fire. If your contents are lost or damaged due to fire including bushfire, your assisted living contents insurance can provide financial protection.
• Storm. This insurance covers loss or damage caused by a storm, including violent winds, hail, snow, rain, thunderstorms, cyclones and tornadoes.
• Lightning. Your contents will be covered when damaged by lightning, or by a power surge caused by lightning.
• Flood. Assisted living contents insurance protects you against loss or damage caused by water that has escaped the normal confines of large bodies of water including lakes, rivers, creeks and dams.
• Earthquake and tsunami. This benefit ensures that you are covered against loss or damage from an earthquake or tsunami.
• Water and oil leaks. When water or oil leaks or overflows from appliances or other household items, assisted living contents insurance covers you for the resulting loss or damage.
• Theft or burglary. Assisted living contents insurance covers you against loss or damage caused by theft, attempted theft or burglary (except when you've invited the person into your home).
• Malicious acts and vandalism. You will be covered if your contents are damaged due to vandalism or a malicious act (except acts committed by you, another resident of your property or someone you've invited into your property).
• Riots or civil commotion. If a riot, civil commotion, or industrial or political disturbance results in loss or damage to your contents, you will be covered.
• Explosion. You will be covered for lost or damaged contents in the event of an explosion.
• Impact damage. Assisted living contents insurance covers you against impact from objects such as falling trees or power poles, and motor vehicles.
• Damage by an animal. Your contents will be protected in the event an animal destroys or damages your contents (excluding damage caused by insects, vermin and rodents).

Frequently asked questions

• How much does assisted living contents insurance usually cost?

  Assisted living contents insurance is typically more affordable than a standard contents policy. This is because you are only insuring your personal belongings not the entire building or the facility's furnishings. The exact cost will depend on the value of the items you choose to insure and any optional add-ons you select.

• Do I really need contents insurance in an assisted living facility?

  While it is not mandatory, assisted living contents insurance is recommended if you have lots of valuables. Even in a secure facility your personal items can still be lost, damaged or stolen due to various events like fire, storm or theft. This type of insurance provides financial protection and peace of mind for your valuables.

• Does this insurance cover nursing homes or high care aged care facilities?

  Yes, it can. Apia's Assisted Living Residence Insurance is designed for people who live in an assisted living facility. Its PDS defines this as a facility that is fitted, furnished and staffed to provide accommodation and nursing care to residents who have a continuing need for care. It covers the contents of the room or rooms you live in that are solely for your use. If you live in a retirement village or an apartment, Apia has separate village and apartment policies. Always check the Product Disclosure Statement (PDS) before you buy.

• Can my previous home contents insurance policy be transferred to assisted living?

  It is unlikely your existing home contents insurance can be directly transferred. Standard home contents policies are typically designed for private dwellings you own or rent independently. When moving to assisted living you will generally need to purchase a specific assisted living contents insurance policy to ensure your belongings are adequately covered for your new living situation.

• What should I do if an insured item is lost, damaged or stolen?

  If an incident occurs you should first report it to the assisted living facility management. For theft or malicious damage you should also report it to the police and obtain a police report number. Then contact your insurer as soon as possible to lodge a claim, providing all necessary details, photographs and documentation of the incident and the items involved.

• How do I cover valuable items I carry outside my assisted living residence?

  For valuable items you regularly take outside your assisted living residence such as jewellery, mobile phones or tablets you can usually add "portable contents" cover to your policy. This optional extra provides protection for these specific items when they are away from your home. Be sure to specify the items and their values to your insurer.

Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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