Understanding Home and Contents Insurance
Are you protecting your most valuable asset with the right Home and Contents Insurance?
Here’s a closer look at how this type of insurance works, what it covers, and why having the right policy is so important.
What is Home and Contents Insurance?
Home and Contents Insurance covers the partial or total loss of your home, as well as damage and loss to your belongings due to fire, theft, water damage and other adverse events.
Do I need Home and Contents Insurance?
If you’re a homeowner, Home and Contents Insurance is one of the most important types of cover you can buy. Without it, you may be left to foot the bill for expensive but necessary repairs to your building, or have to pay thousands of dollars to replace your stolen or damaged valuables.
Even as a renter, it’s important to make sure you are financially protected with the right level of renters insurance cover. That doesn’t just go for your most prized possessions, but also any damage to your landlord’s house and fixtures that you may be responsible for.
How does a Home and Contents policy work?
A Home and Contents policy is made up of two different types of insurance, which work together to offer full coverage for your home and belongings:
- Home insurance. Covers you for the cost of rebuilding, repairing or replacing your home (including any fixtures and permanent structural improvements) after fire, water damage and other adverse events.
- Contents insurance. Covers you for the replacement value of any personal belongings and effects due to theft or damage. This includes things like furniture, appliances, clothes, electronics, computers, artwork and jewellery, and items that you are legally responsible for. Certain coverage limits may apply.
While Home and Contents policies can be purchased separately, you may find it simpler and more cost-effective to bundle them together under one package.
What type of events am I covered for?
Every Home and Contents insurer is a little different, so it’s impossible to say unequivocally what you are or are not covered for.
However, we can tell you that when you purchase Home and Contents Insurance through iSelect with Budget Direct, you are covered for:
- Theft or attempted theft,
- Damage due to fire and/or explosion,
- Storm and rainwater damage,
- Accidental breakage of glass, ceramic and sanitary fixtures,
- Sudden and unexpected escape of liquid,
- Lighting damage,
With Budget Direct, you’re also covered for legal liability up to $20 million for any incident at your home resulting in injury or death to third parties.
Always make sure you read over the terms and conditions of your policy to make sure you understand what you’re covered for, and what limits and exclusions may apply.
Do you offer any optional extras?
With Budget Direct, you can choose to add one or more of these optional extras to your policy for a higher premium:
- Flood cover. This covers you for damage due to flooding from lakes, rivers, creeks, dams, etc.
- Personal effects cover. Covers you for accidental loss or damage of your belongings anywhere in Australia or New Zealand, or for up to 30 days after you depart from Australia. There are two types of personal effects cover:
- Unspecified Personal Effects. Covers items valued at less than $1000.
- Specified Personal Effects. Covers items valued at more than $1000. These must be specifically listed on your insurance certificate.
- Accidental damage cover. Provides insurance for accidental loss and damage to your home and/or contents caused by an accident.
- Landlord cover. Covers you for damage to your home and contents, as well as loss of rental income if a tenant fails to pay under a written rental agreement.
What are my home and contents insured for?
Budget Direct’s Home and Contents policy covers you for the replacement value of your home and contents or the sum’s insured, whichever is less. However, it is the homeowner’s responsibility to nominate a sufficient replacement value. This may involve hiring a professional builder to estimate the cost of rebuilding your home, or getting an appraiser to do a valuation of jewellery and artwork.
Be sure to keep your receipts and valuations in a safe, fire-proof location as you will need them to make a claim.
Looking for a great policy?
We’ve partnered with Budget Direct to offer you Home and Contents Insurance that could save you hundreds. Save 20% when you buy a Budget Direct Smart Home or Smart Contents policy through iSelect online, or save 35% when you combine your Smart Home and Smart Contents policies.
If you’re ready to save on Home and Contents Insurance, get a quote online today.