Compare home and contents insurance

What is home and contents insurance?

Why do I need home and contents insurance?

Getting home and contents cover is a no-brainer. You've probably sacrificed a lot to save up a deposit and pay down your mortgage, so why would you risk losing it all? Here's why it's worth every cent.

What does home and contents insurance cover?

A home and contents insurance policy will generally cover events that could lead to your financial loss. You can find these events in your product disclosure statement (PDS), but they usually include events like fires, storms, theft and vandalism.

Here are some examples where the right home and contents insurance policy can cover you.

• A big storm hits and a tree falls onto your house leaving a hole in your roof, and your kitchen destroyed.
• A pipe bursts in your bathroom and causes water damage to the rest of your home and belongings.
• You go to work and someone breaks into your home and steals your valuables like your entertainment system, jewellery and laptop.
• A nearby bushfire gets out of control, engulfing your home.

What won't I be covered for?

All insurance policies will have general exclusions but they might not be the same. That's why it's important to check over your PDS to make sure you understand what is and what isn't covered under your home and contents insurance policy.

General exclusions can vary between insurers, but here are some common ones.

• Deliberate damage or poor maintenance. If you fail to take care of your property then neither will your home insurance.
• Breaking the law. If the damage to your home is caused by illegal activity, it's safe to say that you probably won't be covered for the repairs or any replacement costs.
• Action of the sea. Things like king tides, tidal waves and storm surges are not usually covered. You can get cover for floods if you add it on to your policy. It might be hard to tell the difference between floods and storm surges, so check your PDS because each insurer can define them differently.
• Pest control and eradication. Pests like cockroaches, mice and rats are not usually covered under home insurance since these policies are designed to cover you for preventable issues.
• Asbestos and mould. Just like the above, asbestos and mould are not covered under home insurance because they're considered preventable issues.
• For contents left unattended. If you leave your things in the open air, you may not be covered even if you have portable contents cover. For example, if you leave your clothes on a shared clothes line unattended, and it's taken, you most likely won't be covered.
• An unoccupied home. If your home is left unoccupied for a period of time (usually over 60 days), you may void your cover since the property will likely be unmaintained.

Many of the individual benefit categories (flood, fire, theft, etc) will have their own individual exclusions, so make sure you're fully across those as they apply to your specific policy.

Frequently asked questions about home and contents insurance

• How can I switch home and contents insurers?

  When your current policy is up for renewal, shop around to see what other policies are available. Compare quotes, features and limits across a range of policies to see if you can find better-value cover. If you find a suitable policy, you can apply for cover online or over the phone.

• Can I insure my home and contents separately with different companies?

  Sure, but in most cases it's probably not worth the effort. If all you need is something super simple, you might save a few bucks by getting 2 separate policies. But as soon as you start tweaking things you may find the savings dwindle.

  Let's say you buy home and contents policies and add flood cover to each. You're already talking 4 products. You're more likely to get a discount on all that with 1 company than if you split the purchases. Not to mention the time saved on paperwork.

  By all means search around for the best deals, but be aware of the hidden costs in both money and time.

• What home and contents policy do I need if I'm renting?

  If you're renting, you probably only need a contents policy since your building will most likely be covered by the landlord or strata.

• I'm a landlord, what home and contents insurance do I need?

  There's a special kind of home and contents insurance designed specifically for you known as landlord insurance. It works similarly to regular home and contents insurance but adds a few bits of protection that a landlord might appreciate (such as loss of rental income).

• How do I get cover for the things I keep outside, like my outdoor furniture, tools and barbeque?

  Your home and contents insurance policy will generally cover things within your property, whether they're kept indoors or outdoors.

  If it's permanently fixed, like a water feature, then the buildings policy will kick in. If it's things like an outdoor dining set, barbeque or tools, the contents side will cover you. Of course, this is all within reason. If you leave your phone unattended in the front yard while gardening, you probably won't be covered for that.

• Am I covered if I rent a TV, sound system or other items?

  This depends on the conditions of your policy but if you have signed a rental agreement which stipulates that you are legally responsible for the items you rented, they will usually be insured under your contents policy.

• I'm going away for an extended holiday, do I need to tell my insurer?

  This will depend on the length of your trip. Many insurers won't cover you if you leave your home unoccupied for an extended period, usually 60 consecutive days or more, but may agree to cover you if you notify them of your travel plans and take steps to ensure that your home is looked after while you're away.

• How do I make changes to my existing policy?

  Always contact your insurer. You might even find it easier to give them a call.

  They'll be able to update your policy if you need to add value to your sum insured, or add optional extras like accidental damage or flood cover.

  If you're adding on cover, you can expect that your premium will increase as well.

  After this has been confirmed, don't forget to keep a copy of your documents that show the changes to your policy.

• Will I need to pay an excess when I need to make a claim?

  Yes, you will usually be required to pay an excess. However, you usually have the option to adjust your excess when you apply for cover.

• Are my pets covered by my home and contents insurance?

  Some insurers will allow you to add pet cover that provides a benefit to help you pay vet bills when your pet suffers an accidental injury.

Icons made by Freepik from www.flaticon.com
Icons made by Freepik, Dave Gandy from www.flaticon.com

Written by

Alexandra Koster

Publisher

Alexandra Koster was Finder's publisher for car, home and pet insurance. She has a Tier 1 certification in General Insurance, as well as a Bachelor of Arts in Film and Cultural Studies from the University of Sydney. Her hobbies include reading Product Disclosure Statements and deciphering complicated insurance lingo to help people save on their insurance so that they can spend their money on better things – like dogs. See full bio