Whether you have just bought your first home, looking to learn more about your current policy, or are looking to upgrade, here are some key facts about home insurance in Australia.

How Does Building and Contents Insurance Work?

Home and contents insurance protects homeowners from the costs that come with replacing or repairing property or contents in the event of an insured event.

This means that the risk is transferred to an insurance company in exchange for a payment. The specifics of this exchange are documented in a policy document, which details the obligations of both parties. 

If your home insurance policy covers the event that caused damage to your property, you can lodge a claim. Once you’ve completed the claims process and your claim is approved, you’ll be required to pay the applicable excess, after which your insurer will arrange repairs, replacement, or provide a payout in line with your policy.

Contents Cover:

Contents are defined as anything not forming the home foundation, this includes:

• Furniture
• Furnishings such as carpet and curtains
• General clothing
• Electrical appliances
• Jewellery
• Paintings

Note that for jewellery and works of art, there is often a limited sum insured unless specified separately.

Building Cover:

Your building sum insured will include the main structure of the home and any external domestic structures such as:

• Walls
• Roof
• Windows
• Doors
• Gates and Fences
• Granny flats
• Sheds
• Gazebos
• Decks
• Pools 

The definition of contents and building can also vary between insurers, so it's always important to check.

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What are the types of home insurance cover?

Listed Events Cover

Also known as Defined Events, this only covers insured events as a result of fire, flood, theft, explosion, or vandalism etc.

Accidental Damage Cover

This includes all insured events in Listed Events cover, in addition to unexpected accidents in the home, such as breaking a mirror or windows.

If you are unsure what your home insurance does and doesn't cover, ask your broker for a copy of your Product Disclosure Statement (PDS).

How much should you insure your home for? 

While a general insurance broker cannot tell you how much to insure your home for, there are many tools that can help you.

This is a critical sum because it is the maximum that an insurer will pay for repairs or replacement of your home in the event of a total rebuild. If you find your home is underinsured, you could find yourself out of pocket.

If you are looking at home building insurance but don't know what sum you should insure your building for, you can check out the Home Building Calculator.

Residential Home Building Calculator

If you also need help with your contents sum insured, check out the contents insurance calculator.

Residential Home Contents Calculator

Home and Contents Cover FAQs

Will home and contents cover me if I rent out my house?

If you are planning on renting out your house, you will need landlord insurance. This type of cover will help you protect your investment property and your rental income.

Are solar panels covered under a home insurance policy?

Yes, as a permanent fixture these are typically covered under your building insurance. However, you will need to make sure your sum insured has increased to factor in your solar panels, so you are not underinsured.

What does home insurance legal liability mean?

Legal liability cover protects you from liability in the event someone in accidently injured and you are found negligent. It can also provide cover in the event you or a family member is liable for another person's property. The amount of legal liability cover will depend on your cover.

Am I covered in the event of a flood?

Flood cover can vary from insurer to insurer, and it is also important to check your PDS to understand the limits of your cover. Some insurers like Allianz as of 2024 include flood automatically on all home building and contents policies.

If you have a question about flood cover or getting a quote for home buildings and contents insurance, you can contact us today.

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