Home And Contents FAQ

Our homes are the most valuable environment in our lives so insuring against the worst case scenario can give you that all-important peace of mind. Home and Contents Insurance is a safety net which can help cover the cost of damages to where you live and what you own should an insurable  event happen.

We can answer this by breaking the cover down into separate parts:  

• Home Insurance, also known as Building Insurance or Property Insurance, helps cover the costs of repairing or rebuilding your property if it’s damaged in a fire, storm or any other “insured event” – basically, anything outlined in the policy’s Product Disclosure Statement (PDS). 
• Contents Insurance concerns itself with the “contents” of your home, things like furniture, electronics, clothing, jewellery and other possessions. It may help cover the cost if your household items or personal possessions are lost, stolen or damaged.  

You can also get a combined Home and Contents policy, which gives you the benefits of both cover types. That way, you can get cover for both damage to your home and damage (or theft) of your possessions. 

This will depend on the terms and conditions of the specific policy.  

Most policies will outline certain exclusions. For instance, some policies might not cover damage incurred while your house undergoes renovation, and others might not cover the loss of jewellery or other valuables.  

However, it should be noted that most policies will usually exclude the following:

• Deliberate Damage 
• Damage caused by vermin (think termites or mice) 
• General wear and tear 
• Existing damage 
• Lawful seizure of your contents 

The policy’s PDS will outline everything a policy does and doesn’t exclude so make sure you give it a read before committing to anything.  

No, there’s no legal requirement for Australians to hold Home and Contents Insurance. However, if you’re applying for a Home Loan, some lenders may require you to hold such cover before they fully approve your application.

Home Insurance basically comes in two types, total replacement cover and sum insured cover. The big difference between them can be summed up like this: 

• Sum Insured Cover: This requires you to estimate how much cover you need. Essentially, you select a sum for which you’re insured. It’s usually less expensive, but if you underestimate the cost of repairs or rebuilding your house, then you could end up paying the difference out of pocket. 
• Total replacement cover: This may provide you with the necessary funds to restore your property to its former condition (prior to the insured event). However, this usually involves an assessment from the insurer so that they can work out the funds required. As such, it can sometimes take a little longer to release the funds. 

Most of the time, a house’s replacement cost will be less than its market value. 

This is because the market value is how much the house and land would sell for on the real estate market, while a replacement cost is how much it would cost to rebuild your house if it was completely destroyed. And typically it costs less to rebuild a house than it does to buy a new one.

Essentially, it means that you would have to pay for the rest of the repair or rebuild expenses yourself.

This is why – before applying for cover – you might wish to assess how much it would cost to repair your home after an accident. Keeping this in mind when comparing your options can also help you select a suitable policy.

Again, this will depend on your insurer. However, many insurers may let you add optional extras to your policy during the application process, or at any time during the life of the policy. 

These optional extras may also help broaden your coverage. For instance, such extras can include (but are not limited to):  

• Flood Cover: Not all Home and Contents policies automatically cover flood damage – instead, they may offer this coverage as an optional extra.
• Accidental Damage: This may cover you for certain damages that occur by accident. Possible insured events may also include breaking fragile items or damage caused by pets. 
• Motor Burnout: This optional extra may cover you if the electric motors in your appliances burn out. This can also include the costs of repairing or replacing these motors.  

Just be aware that such extras may come at an additional cost. Typically, you will also need to contact your insurer to add these extras, although some insurers may let you add them to your policy online.  

As part of the application process, home insurers might ask for the following information:  

• Your property’s address  
• When you moved into the property  
• When it was built  
• The type of building (e.g. house, home unit, apartment, etc.)  
• Its construction materials (and whether they contain asbestos)  
• If you have any security equipment set up  
• Your insurance and claims history  

This information will help them assess the risks involved in insuring your house and may also affect your premium as a result.  

This will depend on the terms and conditions of your specific policy, as outlined in the PDS. 

Depending on your insurer, they may cover certain types of renovations and exclude others which is why it’s always a good idea to check the PDS to confirm what they cover. 

Additionally, you’ll want to contact your insurer before carrying out any renovation work. Most insurers make this a requirement in their policies, and by speaking to them you can also confirm whether or not they’ll cover the work being done.

Like most insurance products, there is no ‘one-size-fits-all’ solution when it comes to insuring your home. A good possible approach is to look at the wide range of policies offered by different lenders.  

You might find that some insurers offer cover for certain events (such as flood damage) while others do not. Some insurers also cover certain items (such as lighting and jewellery) while others do not.  

Comparing these different policies can help you find one that covers the things which are most important to you. As part of this, you can also compare quotes to find a policy with a price tag that suits your budget.  

We can help with this, too. At iSelect, we provide an online tool that you can use to compare home and contents insurance from a range of lenders*. So if you’re interested, feel free to give it a try online, or call our friendly team on 13 19 20. 

Building Insurance and Home Insurance are the same thing — insurance policies that cover your property but not what is inside it (which is why sometimes it might also be referred to as Property Insurance). And by property, this might include: 

• Your home, apartment or household unit  
• Your garage or sheds  
• Fences  
• In-ground pools  
• Driveways and paths 
• Any fixtures attached to your home, such as:  
  • Cabinets  
  • Air-conditioning units 
  • Light fittings  
  • Bathtubs  
  • Sinks  
  • Built-in shelves  
  • Other amenities

So, if your property is damaged or destroyed by a bushfire, earthquake or any other insured event, the insurer can help cover the costs of rebuilding.  

Of course, you will need to check which events the insurer covers as part of this policy. And this can be found in the policy’s PDS. 

When buying a house, you’ll also become responsible for any damage the house sustains. 

This will generally occur sometime during the settlement period for your new home. This is the period when the property title is transferred to your name and can often take up to several weeks. 

However, the exact point that you become responsible can still differ between each state and territory. Although the typical timeframes are as follows: 

• Victoria and New South Wales: The buyer becomes responsible for any damage to the property on the date it’s settled.
• Queensland: After the final contracts have been signed and exchanged, the buyer will become responsible from 5pm the next business day.
• Tasmania, South Australia and the Australian Capital Territory: The buyer is responsible for any damages during the entire settlement period.
• Western Australia and Northern Territory: In this case, the buyer will become responsible for the property when one of the following occurs: 
  • When the full purchase price of the settlement is paid. 
  • When the buyer is entitled or given possession of the house (e.g. as inheritance or a divorce settlement). 

As a general rule, you may wish to take out Home Insurance before you assume responsibility for the property so you’re not without cover. 

This being said the date you assume responsibility can also depend on the terms of your contract so you might wish to talk it over with a lawyer or solicitor to be sure. 

Maybe not.  You might not need typical Home Insurance if you own an apartment or home unit that is under a “strata title” or “Owners Corporation”. These agreements are fairly typical when buying an apartment or home unit as part of a larger complex. The owner’s corporation will generally be responsible for taking out insurance on behalf of its owners for the building and common areas.   

However, this responsibility does not extend to any of the possessions you keep inside the apartment or unit, such as fixtures, fittings, furniture or personal effects. To get cover for these possessions, you would usually need to consider a Contents Insurance policy if you own a strata title property.  

If you haven’t taken out a Home Insurance policy yet, you might consider a combined Home and Contents Insurance policy.  

This is a type of cover offered by many insurers that bundles protection for your home and your belongings into one easy-to-track policy.  

However, if you already have Home Insurance, you’ll need to check with your specific insurer about whether they can add Contents Insurance to the existing policy. You also have the option of taking out a separate Contents Insurance policy if the combined Home and Contents Cover isn’t your preference.  

While it can be hard to get an exact figure on the cost of rebuilding your home, you might be able to get an estimate by using one of the many online building cost calculators that reputable insurers offer online. 

This might not give you a precise figure, but it can be a good starting point. Alternatively, you can contact a qualified surveyor to estimate the replacement cost of your home, but this will involve hiring and paying them for their services. 

Some insurers might cover the cost of temporary accommodation when you make a Home Insurance claim. This will usually be something they offer if your home is so damaged that you can no longer live in it, although the precise conditions can vary from insurer to insurer. 

Limits can also apply here. For instance, the insurer may only be willing to cover your temporary accommodation for a certain period or up to a certain cost. As with most information, any limits and conditions will be listed in your policy’s PDS.

This can vary depending on the policy.   

Some insurers may provide cover for phones and jewellery. But this is usually when such items get lost or damaged inside your home.  

However, at an additional cost, you might be able to add Portable Contents Cover (also known as Personal Effects Cover) to your Contents Insurance. This may cover you if certain valuables are lost or damaged outside your home.  

It is also worth noting that certain valuables can also be subject to claim limits. For instance, some insurers may only be willing to insure jewellery for a maximum of $1000.   

To find out what these limits might be, check the policy’s PDS. The PDS will give you an overview of the specific policy’s key features, including what is and isn’t covered.  

Again, this will depend on the terms and conditions of the specific policy.  

Some insurers may provide cover for a smartphone that’s lost or damaged inside your home. But this would need to be outlined in their PDS.   

Other insurers may allow you to pay extra for Portable Contents Cover (also known as Personal Effects Cover) as an optional extra to your Contents Insurance, and this may provide cover for your smartphone when you take it outside the house. Check the PDS for this extra cover as it is not always guaranteed.

Contents insurance can help cover the costs of your household belongings if they’re damaged or stolen.  

More specifically, it’s an arrangement where the insurer will replace, repair or provide a cash settlement for the lost or damaged belongings. That is, so long as this loss or damage is caused by an insured event – which may include fire, theft, vandalism and a range of other incidents.

Although insurers can differ on the precise wording of their policies, most Contents Insurance products will provide cover for the same few events.  

These events may include:  

• Fire 
• Explosions  
• Storms and lightning  
• Earthquakes and tsunamis  
• Theft, or damage caused by accidental theft  
• Malicious damage or vandalism  
• Sudden escape of liquid (e.g. caused by a burst pipe)  
• Impact damage (e.g. damage caused by falling trees) 

Providers may also offer some optional extras for an additional premium such as:   

• Motor burn out 
• Accident cover 
• Flood   

You may need to speak directly to your chosen provider to understand what comes as a standard on your policy and what can be added as an optional extra. Always read the PDS before making any purchasing decision.    

Insurers can also differ on the specific items their Contents Insurance covers. However, they will usually include the following:  

• Clothing  
• Cosmetics and toiletries  
• Furniture and furnishings  
• Electronic appliances  
• Kitchenware  
• Potted plants  
• Jewellery  
• Musical instruments  

However, as always, it’s worth looking at the specific policy’s PDS to find out exactly which items are covered.

“New for old” cover is a common type of Contents Insurance. Under this policy, if an insured item is lost, stolen or damaged, then the insurer may cover the costs of replacing it with a new one.  

This means that you can replace the old insured item with a new equivalent item. However, it is often more expensive than the other type of contents insurance: replacement value cover.  

This is because replacement value cover only covers you for the current value of the insured item.   

This wouldn’t be the original price of the item either, but a reduced amount. For example, the TV that you’ve had for ten years would depreciate in value over time, and this depreciated value is what a replacement value policy would cover.

Many reputable insurers provide online calculators that you can use to get a general estimate of how much it would cost to replace your home contents. At iSelect, we have our own calculator that you can try out.  

Alternatively, you can base your estimate of any significant items on the receipts or purchase records for them. To work out the value of particularly valuable items, such as jewellery, you might also consider getting them appraised.

An excess is the amount you’re required to pay when you make a claim. For example, let’s say you make a claim for $20,000 and your excess is $1,000; you’ll need to pay that $1,000 before the insurer puts the remaining $19,000 towards the claim.

Most insurers have a minimum amount, as well as a maximum amount, which you can choose for your excess. However, this can vary greatly depending on the insurer. 

Some insurers will charge an additional excess for certain events, such as tsunamis or earthquakes. To find out which other excesses may apply in addition to the policy excess, you should check the PDS for the specific policy. 

In the PDS, the insurer will also outline the key features, benefits and risks of their policy. This makes it very useful to look over if you have any concerns.

This can depend on your insurer, so you’ll need to check with them. 

Some insurers may allow you to change your excess at any time. However, this doesn’t typically include any additional excesses for certain events. 

Changing your excess will also have an impact on your premiums—the regular payments you make on your insurance. A lower excess typically results in higher premiums while a higher excess typically brings your premiums down.

Most insurers will require that you pay your excess in one lot – otherwise known as a “lump sum”. 

This being said, some insurers may provide assistance if you are unable to pay this lump sum due to financial hardship. This may include giving you a longer timeframe to pay the excess or allowing you to pay it in instalments. 

However, you will need to check with the insurer to confirm if they provide this option.

Put simply, Landlord Insurance is a type of insurance that covers a landlord’s investment property for certain events.  

This can include events covered by regular Home Insurance, such as damage to a building caused by natural disasters.  

However, it may also include cover for events specific to landlords, such as a tenant damaging their property, or the legal expenses that come from a tenant dispute. Just keep in mind that policies may differ when it comes to the kinds of events and claims they cover.

Landlord Insurance can help cover you for a variety of events. This may include things like:  

• Damage to your property due to natural disasters or severe weather  
• Damage to your property caused by explosions, burst water pipes or other accidents  
• Damage to your property caused by your tenants of their guests  
• Theft or burglary by your tenants or their guests  
• Loss of rent if your property is uninhabitable due to an insured event  
• Loss of rental income if your tenants default on rental payments  
• Legal expenses arising from tenant disputes, such as eviction 

That being said, “insured events” vary from policy to policy. So it never hurts to check which events are covered and whether exclusions apply.  

Fortunately, this can be found in the policy’s PDS, the document that includes all the policy’s key features, terms and conditions.  

No, Landlord Insurance is not a legal requirement within Australia.

Landlord insurance can provide some much needed peace of mind as it may help cover the costs of damage to your rental property as a result of theft, natural disasters or other insured events.

Home Insurance protects your house, home unit or apartment in which you live.  

It isn’t typically geared towards an investment property either. Standard Home Insurance can help cover the costs if your house is damaged by storms, fires, floods or other insured events, it doesn’t cover the specific risks that come with housing a tenant.  

Landlord Insurance, by contrast, covers your investment property. That is, the property you use to generate a rental income.  

As such, it can help cover you for many of the same events as a Home Insurance policy, but for events specific to leasing a house as well – such as a tenant damaging your property.  

This will depend on the specific policy.  

Some insurers may provide cover for the items you’ve provided for your tenants, which could include appliances, furniture, or other household belongings.  

However, to work out exactly what’s covered in the policy, you’ll need to check the product disclosure statement, as this will tell you whether certain contents items are insured or not.

Depending on your policy, you might be able to decrease your premium by doing the following: 

• Installing safety features like security cameras and deadlocks 
• Increasing your excess 
• Paying your premiums annually 
• Reducing the sum for which your home or contents are insured 
• Removing optional cover you don’t need 

This being said, any changes to your policy should be made carefully, and by considering the risks a reduction in coverage could pose.

This will generally depend on your specific circumstances.  

If you already hold Home and/or Contents Insurance for the property you’re selling, then you may wish to consider the following:  

• When is the settlement date?  
  • Your lawyer or conveyancer may recommend that you keep your home and contents insured on your current property until settlement date.  
  • The settlement date is usually 30-90 days after you and the buyer sign the contract of sale.
• Are you buying a new house?
  • You might be able to transfer your existing policy to the new address. You may want to contact your insurer to find out if this is an option.
  • The moment you become responsible for your new property may vary between each state and territory. If you don’t wish to be unprotected, then you may want to consider having a policy in place beforehand. 

At the end of the day, whether you choose to cancel your existing policy or transfer it to a new address is ultimately your choice.   

Generally speaking, no.  If your insurer has automatically increased the sum insured on your policy, you can contact them and request that this amount be lowered again. Just keep in mind that these automatic increases are often processed to match the rising costs of goods and services – including what it might cost to carry out home repairs or replace your household belongings.  

If your insurer isn’t willing to lower their prices, then it may be time to shop around for a more competitive deal. iSelect can help you compare Home & Contents policies to see how yours stacks up.  

Just keep in mind it’s important to consider what sum insured amount you might need to cover your home at today’s prices.   

As a general rule, insurers are required to advise you of your renewal options 14 days before the renewal happens. This is essentially your “cooling-off period”—time to consider if the policy is still appropriate for you. There is no legal requirement for the insurers to offer a cooling-off period after the renewal.

Some insurers will let you transfer an existing Home Insurance policy to a new address. However, you’ll need to contact that particular insurer – or check their website – to see if they provide this option.  

From there, they can outline the next steps to get the policy transferred.  

However, as part of this process, they will need to assess the risk of insuring this new address – which can involve a change in your premiums.

You’ll usually be able to get your home insured as soon as you’ve obtained a certificate of occupancy for the building.   

This might also be known as a “occupancy permit” or “occupation certificate” in some states.  

Once you have this, you’ll be able to apply for a policy by calling an insurer of your choice or applying with them online. However, it may also be prudent to check with the insurer and find out if there are any other requirements too.

Put simply, flood cover is a type of insurance benefit that may help cover some of the costs if your home or your belongings are damaged by a flood.  

Generally, it is offered as an optional extra for your Home and/or Contents Insurance for an additional premium.

This will generally depend on the terms and conditions of the specific policy.  

However, the cover you receive also depends on the type of policy you hold. For instance, a Home Insurance policy will only provide cover for your property, as well as any fixtures attached to your home; a Contents Insurance policy will only provide protection for your household belongings—your clothing, furniture and other such possessions. 

This being said, there are some exceptions where flood cover may not provide protection. For some policies, this may exclude:  

• Damage caused by a storm surge 
• Damage caused by actions of the sea, such as tidal waves  
• Underground water seepage or pressure  
• Earth movements caused by a flood, such as landslides or land erosion  
• Hydrostatic pressure (e.g. pressure from water in confined spaces, such as pools or retaining walls) 

As always, you’ll want to check out a policy’s PDS to see what’s covered and what might be excluded. As this can differ from policy to policy.  

The best way to find out if an insurance policy covers you for a flood is to check the policy’s PDS.  

The PDS will outline all the key features of the policy. That typically includes whether or not flood cover is an optional extra, and in which events the cover protects you. For instance, some policies may protect you from floods but not the landslides or mudslides that result from them.  

If you already hold Home or Contents cover, you’ll also want to check your certificate of insurance. Typically, this will display any optional extras you have on your policy, and you can obtain a copy by contacting your insurer.

Back in 2012, the Australian government finalised a standard definition for floods.¹Ministers Treasury Portfolio – Standard Definition of Flood Regulations Finalised They are now defined as:  

“The covering of normally dry land by water that has escaped or been released from the normal confines of: any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal, or dam.”  

Home and contents insurers adhere to this definition as well. Their flood cover will protect you so long as it meets this definition, and so long as it meets the criteria set out in their policy’s PDS. 

In most cases, renters and tenants can get flood cover attached to their contents insurance policies – including Renters Insurance.  

This may help cover the costs if their household belongings are damaged in a flood.   

Just keep in mind that not all policies provide flood cover as an optional extra. So you may wish to read through the specific policy’s PDS, as it will tell you whether or not flood cover is available as optional extra (as well as which exclusions might apply).  

Finally, it’s worth noting that renters won’t typically need Home or Building Insurance. This is because they do not own the property – so any damage to the building becomes the landlord’s responsibility to insure.

Motor burnout cover – otherwise known as fusion cover – is a type of insurance for the electric motors in your household appliances. 

Usually, it’s an optional extra for Home or Contents Insurance. These policies may provide cover for your home and your belongings if they’re damaged but may not cover you if the electric motors in your appliances (such as your fridge or air conditioner) burn out. 

In contrast, motor burnout cover may cover the costs of repairing or replacing these motors in the event of an electric current or power surge.

Ultimately, this decision will rest with you. 

An optional extra, such as motor burnout cover, may increase the regular cost or “premium” of your insurance policy. However, it may also ensure that you have cover for a wider range of events. 

So, as with most financial products, there’s a trade-off involved: price vs risk. And the suitable choice may depend on what suits your budget as well as your insurance needs.

Again, insurers can differ. Some policies will cover you for certain events which other policies will exclude. 

That being said, some common exclusions for motor burnout insurance are as follows: 

• Any motor that is more than ten years old 
• Any underground or submerged motors 
• Any motor where the repairs are covered by a warranty 
• Any motor in an item that you use for your business or trade 
• Damage caused by age (natural “wear or tear”) 
• Damage to fuses, switches, lighting or heating elements 
• Damage caused by spoiled food (e.g. contamination of your refrigerator) 

As with checking which events and items are covered by a specific policy, you can refer to the policy’s PDS to find out which exclusions apply.

Portable Contents Cover – otherwise known as Personal Effects Cover – is a type of insurance that may provide cover for items that you take outside the house.  

Specifically, it covers these items against accidental loss and damage.  

It differs from ordinary Contents Insurance, which typically covers you for items and belongings so long as they’re kept inside your home. This makes Portable Contents Cover something to consider for items that you frequently take outside.  

There are also two different categories of Portable Contents Cover:  

• Unspecified cover: This cover can help insure you for a variety of items. You typically won’t need to tell the insurer which specific items these include when signing up for the policy either. However, there can often be a limit to how much you can claim on each unspecified item.
• Specified cover: Generally, this will be for more expensive items – usually those that exceed the policy limits. In this case, you will need to tell the insurer which exact items are being covered, specific item details and how much they are worth. In some instances you may need to provide an appraisal of the item.

This can differ depending on the insurer. 

For instance, some insurers may offer a personal effects benefit that covers digital cameras and portable devices, while other insurers may not. 

This is why it can be worthwhile to check a specific policy’s PDS before committing to it.  

Some of the items insured by Personal Effect Cover can include: 

• Jewellery 
• Clothing, including hats and furs 
• Musical instruments 
• Digital cameras and other photographic equipment 
• Handbags, briefcases and assorted travel bags 
• Medical aids, such as hearing aids, crutches, and wheelchairs 
• Spectacles, sunglasses, and contact lenses 
• Sporting equipment 

Some of the above items may only be eligible for unspecified Personal Effects Cover. So you’ll need to check the policy’s PDS to find out which items can be insured by the different cover types. 

This will depend on the terms and conditions of your specific policy. There are definitely some policies that will provide cover for you when you travel overseas — so long as it’s an item listed in the PDS. However, certain conditions may apply. 

For instance, certain policies will give you overseas cover for a period of up to 90 days after you travel outside of Australia. These time limits and restrictions will also be listed in the PDS.  Anything beyond that, you’ll need to consider taking out a separate travel insurance policy.

Renters Insurance may be a suitable policy for people who are renting a house, apartment, or unit.  

Basically, it’s a form of Contents Insurance. It helps cover certain items and belongings you bring into the property, replacing them, or covering the costs, if those items are lost or damaged due to an insured event.  

 Such items may include, but are not limited to:  

• Furniture  
• Appliances  
• Kitchenware  
• Electronics  
• Clothing  
• Jewellery  

However, different insurers may cover different items in their policies. You’ll need to check out the PDS to find out which items are covered for that specific policy.  

As always, this depends on the insurer, as well as the terms and conditions of the policy itself. 

However, events which are typically covered, either as a standard or extra, include:  

• Fire  
• Explosion  
• Flood  
• Earthquake and tsunami  
• Extreme weather and lighting strike  
• Water damage caused by burst pipes  
• Impact damage (e.g. falling trees)  
• Accidental damage  
• Malicious damage or vandalism  
• Theft and attempted theft  

Again, keep in mind that the events covered may differ from policy to policy. Not all insurers will cover every event written above; and some insurers may only cover certain events at an additional cost.  

Of course, you can also find which events are covered and which are excluded in the policy’s PDS.

There are a few things you may wish to consider before taking out Contents Insurance as a Renter:  

• Calculate the cost of your belongings This will help you work out how much cover you’ll need if your belongings are damaged. Doing so can help you from being underinsured and reduce having to cover the costs of any damage yourself. 
• Consider your excess The “excess” on your policy is the amount you’ll have to pay out of pocket if you make a claim. A higher excess will usually mean lower premiums and vice versa… 
• Check the limits for certain items A Contents Insurance policy may only insure certain items up to a certain point: for instance, one insurer might cover jewellery for a limit of $1000 while another $2000. So check the policy’s PDS to ensure the limits are acceptable for the cover you need.  

Fortunately, we can help. At iSelect*, you can use our comparison service to compare Contents Insurance policies from a range of insurers, or call 13 19 20 to speak to our friendly team.