What is contents insurance?
Contents insurance is a specific insurance that covers the financial cost of replacing your household personal possessions such as clothes, jewellery, white goods, appliances, computers, TVs, curtains and sporting equipment.
Our homes are full of important personal possessions and, just like other important things in life such as health, it makes sense to insure these possessions against unforeseen circumstances including fire, flood and burglary.
What is covered by contents insurance?
Contents insurance policies can differ greatly with what they cover and what they cost, which is why it is important to compare by speaking with an iSelect home and contents insurance consultant to help you compare.
Most contents policies cover your household items and those that belong to family members who live with you. But your policy may not cover items belonging to friends or guests – unless they are named separately on the policy.
If you are often on the move – taking computers, cameras or valuable sporting equipment with you on the road – you may want to consider extra cover to protect these items when they are outside your home.
Are there different types of contents insurance?
Contents insurance policies either offer replacement value or new for old cover. The most popular cover is ‘new for old’, which means your insurer will replace your old possessions with new items. This type of policy may cost a little more, but ensures you are covered for an amount to replace your items, rather than the depreciated value of your possessions.
What am I covered for?
Because every person’s belongings (ie their contents) are different, there are a range of policies that can be tailored specifically to your needs and budget. For instance, basic contents insurance covers ‘defined events’ such as fire, flood and burglary. For greater peace of mind, you may want to consider a broader coverage against ‘accidental damage’ which protects you against incidents like damaged carpet from a spill, or putting a rip through the couch by mistake.
For high-value individual items such as jewellery, you may need to pay an additional premium as some policies have a maximum fixed replacement amount for these items. By listing them separately on your policy, and having valid independent valuations and photographs of the items, you can ensure they are adequately covered.
Do I need contents insurance?
If you want to be covered for the loss of, or damage to, your household possessions, then the simple answer is ‘yes’ to contents insurance. Many Australian homeowners combine contents insurance with home insurance in a home and contents insurance policy. Even if you rent, it’s still important to insure your possessions via contents insurance.
How do I find the best contents insurance for me?
Speak with an iSelect home and contents insurance expert to compare policies and get the information you need to find contents insurance that best suit your needs.
Any advice provided in this content is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. iSelect does not compare all products in the market. Not all products are available at all times.