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Butter Insurance review
Butter Insurance is an insurance startup that lets you quickly cover new items against accidental damage and theft. It offers Australia-wide coverage, as well as overseas trips for up to 90 days.
Butter Insurance offers a subscription-style policy to keep things simple for people looking to insure their contents. You can leave your monthly or annual plan at any time without being hit in the pocket.
It's possible to add insurance for your new device, such as your laptop or mobile phone, while at the checkout (only with certain partner retailers). Doing this lets you access 7 days of free coverage.
There's no insurance paperwork – you can manage your cover and make claims online via your Butter account.
Cons
As a recent entrant into the insurance market, some may prefer the option of a larger name such as NRMA or Bendigo (who both also offer single-item insurance).
There's a flat excess of $75 for claims for mobile phone screen repair or replacement. But more expensive electronics will carry a higher policy excess. Read more on this below.
We don't currently have this brand on our panel. But don't fret! You can head to the Butter Insurance website or compare a bunch of other home insurance companies with Finder.
You must list each individual item you want covered in your Butter account. At the time of writing, each device or item must have a purchase price between $300 and $5,000. Items must be new and be added to your account within 90 days of you buying them.
Butter Insurance includes coverage for unintentional damage to your insured possessions. Broadly, accidental damage means damage "that is not expected or planned by you". After a claimable event, Butter Insurance will either:
Repair the item
Replace it
Pay the sum insured
Theft cover
Your item will also be covered for theft while an item was in your possession, or in a secured place at home or in your car or boat. After a successful claim, as Butter Insurance's product disclosure statement (PDS) states, "we will at our option provide a replacement item or pay the sum insured".
Exclusions
Here are some of the main exclusions from a Butter Insurance policy.
You won't be covered for the accidental loss of an insured item. For example, if you leave it unattended by mistake.
Loss or damages due to wear and tear.
If you didn't take reasonable care to stop theft or accidental damage from happening.
Damage from electronic viruses or software malfunction.
Your phone if it doesn't contain the SIM card which you registered with Butter Insurance when you bought the policy.
Any fraudulent claims.
Theft if it occurs where there's no evidence of forced entry.
Theft or damages from acts of war or terrorism.
The lawful seizure or repossesion of your contents.
Product repairs that are covered by a manufacturer's warranty.
Cosmetic damages (that said, a cracked screen on a phone, tablet or laptop is generally covered).
Damage caused by vermin or insects.
You can see a comprehensive list of exclusions in Butter Insurance's PDS on its website. Also, read more about common policy exclusions here.
What excess will I pay to make a claim?
Butter Insurance charges a flat excess of $75 for claims for mobile phone screen repair or replacement. Otherwise, the policy excess – the amount you pay upfront to make a claim – starts from $100.
The excess you will pay is based on a tiered system which varies depending on an item’s purchase price. For example, a laptop that you buy for less than $2,000 has a $100 excess. A laptop between $2,000 and $3,000 will come with a $125 excess.
The maximum excess set by Butter Insurance is $450 for a mobile phone and $225 for all other items. In practice, these larger excesses are unlikely to apply to most people.
Bottom line about Butter Insurance
Sydney-based Butter Insurance was founded in 2021. The startup is aiming at a younger demographic of consumers who are confused or irritated by the traditional model of contents insurance.
What are the main USPs of Butter Insurance? You can add cover for just one item. And you have the option of building your plan around only those devices you actually need insurance for. Plus, you can cancel at any point if your needs change. Butter lets its customers add insurance at the checkout in some cases – but until that particular feature becomes mainstream, it’s likely that most users will need to tag on their cover within 90 days of purchase.
Why you can trust Finder's home insurance experts
We're free
You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
Virginia Surety Company, Inc – a subsidiary of The Warranty Group Australasia – is the issuer of Butter Insurance.
According to Butter Insurance’s PDS, there are 5 main criteria you must meet if you’re looking to take out cover:
The insured item can’t be more than 90 days old
It must be new and in good working order
The item must be in your possession (meaning it can’t be lost)
You must permanently live in Australia
You must be at least 18 years old
Yes, Butter Insurance offers a 21-day cooling-off period. This means you can change your mind within 3 weeks for a full refund.
Simply head to your Butter account online and use the claims tab. You then select the item you’d like to make a claim for and follow the prompts.
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146).
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