A home owner’s guide to Home and Contents Insurance
If you’re a homeowner, having the right Home and Contents Insurance can give you peace of mind when it comes to your most valuable investment, not to mention your prized possessions.
To make finding the right cover easier, here’s everything you need to know about Home and Contents Insurance, including how it may be affected if you rent out your property.
What is Home and Contents Insurance?
From fire and theft to storm damage, Home and Contents Insurance provides financial protection against the unexpected.
Home and Contents Insurance is made up of two types of insurance, which cover you in different but equally important ways:
- Home insurance. Should your home sustain damage or loss due to adverse events, such as fire or water damage, Home insurance covers you for the cost of repairing, rebuilding or completely replacing your home, including structural improvements and fixtures.
- Contents insurance. When you’re a home owner, the value of your possessions can quickly add up. Contents insurance covers you for the replacement value of any personal items and effects in your home, including furniture, appliances, clothes, electronics, jewellery, artwork and more. Certain limitations may apply.
While Home and Contents insurance policies can be purchased separately, choosing to combine them under one policy may offer greater convenience and savings.
What you need to know if you’re living in the property
As with any type of insurance, it’s important to know what you’re covered for in case anything goes wrong and you need to make a claim.
While every insurer is different, a standard Home and Contents may cover:
- Water damage (not from floods)
- Lighting, earthquakes and impacts
- Third party injury and death.
On the other hand, it might not cover:
- Caravans, trailers and mobile homes,
- Structures used for business or commercial purposes,
- Above-ground swimming pools, tennis courts or lawns.
However, some policies may offer optional extras that you can add to your premium. These may include:
- Collections cover. Extra cover to insure high-value items, including jewellery, artwork and collections, such as coins and stamps.
- Personal effects. Personal effects cover is insurance for valuable items you take with you when you travel. These can either be unspecified (under $1000 in value), or specified (over $1000 in value and listed on your insurance certificate).
- Flood insurance. For home owners living in areas of increased natural risk, flood insurance provides specific protection against flooding from lakes, creeks and dams.
Bear in mind that you may have to prove ownership and/or value of any personal items when making a claim.
As always, make sure you take the time to read over the specific terms and conditions of your policy. That way, there won’t be any unpleasant surprises down the track.
What you need to know if you plan to rent out your property
If you’re planning to rent out your property, you may want to consider taking out Landlord cover.
Landlord cover is specially designed to cover loss, damage or destruction to your property and/or contents caused by tenants. Some policies may also provide cover for loss of rent (up to a certain amount) if your tenant defaults on their payments under a written agreement.
Bear in mind that Landlord insurance does not cover strata title buildings. For that, you’ll need a Strata insurance policy.
What is strata insurance?
Strata insurance is cover for the building and common contents of strata title buildings or homes that are part of a body corporate or owners corporation.
If you own and rent out a building in an apartment complex, duplex or townhouse, Strata insurance provides specialised cover for buildings, shared areas and contents, such as gym equipment and washing machines.
Looking for a Home and Contents Insurance policy?
If you’re ready to protect your home and valuables, get a quote for Home and Contents Insurance now.