Compare Home and Contents Insurance

Home and contents insurance is a combined policy that includes features of both home insurance and contents insurance. Some insurers even offer discounted policies for homeowners interested in purchasing both home and contents insurance under one premium.  

Home Insurance generally covers the cost of rebuilding or repairing your home. This includes the bricks and mortar, roof, and other structures on your property, such as sheds and garages. Home Insurance may also protect your home from damage outside of your control, such as natural disasters (including storms, floods and bushfires). Check your policy carefully, as sometimes flood and other disaster events need to be specified and may require additional costs.  

Contents insurance is focused on your possessions, rather than the building itself, and can include things such as clothes, jewellery, furniture, and appliances. Your items can be covered from natural disasters, and depending on the policy, may also be protected from accidental damage, theft and electrical surges. It’s important you read the insurer’s Product Disclosure Statement (PDS) for details on policy inclusions, exclusions and limitations.

On its own, contents insurance provides a level of financial protection against damage, theft or loss of personal possessions.  
 
More specifically, it covers the cost of repairing or replacing your personal or household possessions and furnishings. For some policies, cover for accidental damage can be added, which means if you or a guest knocks something over or breaks something, you can make a claim to repair or replace it if required. You may also be able to arrange protection if certain items are lost, stolen or damaged outside of your home – a great choice for things like jewellery or expensive musical instruments and portable electronics.

Home and Contents policies typically cover different things but are often jointly purchased by homeowners. Imagine your home was tipped upside down.  Anything that falls out of it is considered contents, but anything that stays put is usually covered under the Home Insurance.   

Home or building insurance covers the structure and permanent fixtures of your home. This can include: 

• Roof 
• Walls 
• Doors and windows 
• Built-in cupboards 
• Ceilings 
• Floors 
• Kitchen fixtures 
• Bathroom fittings 

On the other hand, Contents Insurance, can cover a broad range of items including:   

• Clothing 
• Jewellery 
• Carpets 
• Toys 
• Furniture 
• Bedding 
• Curtains 
• Decorations 
• Computers 
• TVs 
• Stereos 
• Fridges 
• Other electrical appliances 
• Tools 
• Sporting equipment 

Limits may be in place for some items and may need to be specified on the policy to be covered at higher values. 

Yes, it’s possible to insure personal belongings that are regularly taken with you when leaving the house, that may not be covered under normal contents insurance. This can include things such as mobile phones, cameras, and jewellery. When choosing a premium there is often an option to add ‘personal effects’ or ‘portable contents’ cover to your policy. The difference between normal contents insurance and portable contents insurance is that the accidental loss or damage of an item happening outside of your home can be covered.

The cost of home insurance can depend on many factors, including: 

• Whether you’re covering just your home, contents, or both 
• The level of coverage purchased 
• Your claims history 
• The area that you live in 
• What kind of security features your home has, like alarms, deadlocks or security doors 

Your premium is usually calculated based on the profile of risk to be covered, as well as other factors including age, location, and how the home is occupied. In addition to your location, insurers may take into consideration the building materials, and a number of other potential risks.

To find out how much home and contents insurance could cost, you can compare Home and Contents Insurance policies from our range of providers online with iSelect. 

This ultimately depends on the terms of your policy. It’s always a good idea to read a policy’s Product Disclosure Statement (PDS) before committing to anything, as it will clearly outline which situations the insurer will and won’t cover, and which can be added as optional extras. 

Typically though, many insurers provide cover for damage or loss that’s caused by: 

• Fire (including bushfires) 
• Theft or attempted theft 
• Malicious damage 
• Storm and wind 
• Explosions 
• Earthquakes or tsunamis 
• Falling trees 
• Leaking or burst pipes 

Other events that cause loss or damage might be offered by the insurer at an additional cost, such as: 

• Floods 
• Accidental damage 
• Motor burnout 

There are also certain events that insurers won’t typically cover. These can include damage or loss caused by:

• Sea movement 
• Earth movement 
• ‘Wear and tear’ 
• Terrorism 
• Structural and design defects 
• Vermin, such as termites and rodents 

This information is based on the selection of policies we compare. However, don’t just assume that you will (or won’t) be covered by any of the events listed above.  Again, you’ll want to read the PDS for your policy to find out exactly what you’re covered for.

Landlord insurance goes one step further than home insurance. It can protect you from financial loss caused by your tenants or their guests, including damage to your property or unpaid rental payments. Some landlord insurance may also cover legal expenses required to evict a tenant or potential loss of rent if your property becomes unliveable after a disaster event, while others may require additional premiums for this.

When you live in a rental property, your landlord is generally responsible for any damage (not directly caused by you) to the home, including fixtures and fittings. This is often covered by their landlord insurance, however, your contents are not covered by this insurance. Contents insurance can be referred to as ‘renters insurance’ when tenants are involved.  

Subject to the terms and conditions of your policy, renters insurance can provide protection for your possessions from damage due to a range of events such as natural disasters through to accidents caused by you, your family or your guests. Renters insurance can also protect you if any legal liability were to arise during your tenancy. For example, if someone on the signed lease injured themselves at the property being rented, potential support could be provided for legal and medical costs through insurance.

Just like car and travel insurance, the ‘excess’ is the portion of an insurance claim you’re required to pay if you make a claim. The insurer generally covers additional costs beyond the excess up to the specified limits of your policy. This amount of excess is determined and set out with your insurer before approving your policy.  

In its simplest form, excess allows your policy provider to shift a small part of the financial risk back into your hands. In a case where the damage is not your fault (such as negligence from a landlord or builder), you may not be required to pay an excess. This will be determined by your insurance provider and your specific policy. 

The two main types of contents insurance are ‘replacement value’ and ‘new for old’ cover. Basically, it means that if your belongings are damaged beyond repair or stolen, new for old insurance will provide you with an equivalent item for no added cost (besides the potential excess you’re required to cover, as stated in your policy wording).

Generally, a higher premium will apply for new for old cover. Replacement value insurance only covers the value of possessions, and the value of most items will depreciate each year.

Research is required when comparing home and contents insurance policies. It can be beneficial to shop around before making a decision. Some helpful questions to consider when researching policies can include: 

• Do you rent or own the property? 
• How much can you afford to replace if you lost everything? 
• Do you need to replace everything if you did lose it all? 
• What’s the most expensive thing you own? 

Comparing what’s on offer from different providers can be very useful if you’re looking for a policy at a competitive price. However, price isn’t the only thing you should consider when selecting a policy.  

Just because a policy is cheap doesn’t mean it’s suitable. For example, a policy might be cheaper if it doesn’t have flood cover, but if you live in a flood-prone area then that could be an extra you really need! A higher excess could also reduce the amount you pay for a policy, but it might not be suitable for every budget: some people might have enough savings to cover a $5,000 excess while others might struggle.

Furthermore, a policy that covers you for $200,000 will usually cost less than a policy that covers you for $500,000. But maybe your house is worth $500,000, and it will cost around that much to cover the repairs if disaster strikes.

You see what we mean? Yes, it’s important to consider the cost of your policy, but it shouldn’t be the only thing you consider. It’s also prudent to think about your excess, your coverage options and the insurer’s reputation. You’ll want to know that the insurer is reliable and can actually pay your claims.

Comparing policies from different insurers is one of the best ways to find a great deal. Weighing up similar policies can also give you a good idea of how much value you’re getting for your money.

iSelect can also help when it comes to comparing policies. You can use our online tool to compare a range of policies from different providers—so give it a try today! It’s free and easy-to-use.