Home insurance in Australia, often referred to as home and contents insurance, can provide financial protection against various unexpected events that can damage your property (building) and belongings (contents).

Standard policies typically cover:

Fire and explosion damage.

Storm, rainwater and flood.

Theft or burglary.

Water damage (escape of liquid).

Impact damage.

Vandalism or malicious damage.

Lightning.

Glass Breakage.

Building insurance covers the physical structure of your home, including walls, roof, fixtures (kitchen, bathroom), garages, fences, and in-ground pools. The sum insured should reflect the full rebuild cost, not the market value.

Contents insurance covers your household belongings like furniture, appliances, electronics, clothing, carpets, and valuables. Ensure your contents sum insured is enough to replace everything at today's prices.

You can use these calculators on the Insurance Council website to help you estimate the cost to rebuild your building or replace your contents.

Most policies have exclusions, such as damage from wear and tear, pests, or lack of maintenance. You can often add optional extras like portable valuables and electrical motor burnout. Always check the Product Disclosure Statement (PDS) for specific inclusions, exclusions and waiting periods that may apply to some cover types.

Building insurance and contents insurance are the two main components of a comprehensive home insurance policy.

Building Insurance: covers the physical structure of your home and other permanent fixtures on your property. This includes:

The house itself (walls, roof, foundations).

Fixed items like kitchens, bathrooms, built-in wardrobes.

Garages, sheds, and carports.

Fences and driveways.

In-ground swimming pools.

Permanently installed items like air conditioning units and hot water systems.

The sum insured for building insurance should cover the rebuild cost of your home.

Contents Insurance: covers your personal belongings inside your home. This includes:

Furniture and furnishings.

Appliances (refrigerators, washing machines, TVs).

Electronics (computers, phones).

Clothing, personal items, and jewelry.

Kitchenware, bedding, and linen.

Carpets and internal blinds.

The sum insured for contents insurance should cover the replacement cost of all your belongings. Note that some of your valuable items might cost more to replace than the policy limits.

You can purchase combined home and contents insurance policies for convenience, which may be available at a discounted rate. If you are renting, you can consider contents insurance to protect your belongings, as the landlord is only responsible for insuring the building and any contents they provide for the tenants use.

You can purchase home insurance and contents insurance separately.

Whether you consider both depends on your situation:

Homeowners: typically consider both combined or separate policies. Home insurance covers the building itself, while contents insurance covers your belongings inside.

Renters: generally only consider contents insurance to protect their personal possessions. The landlord usually insures the building and any contents they provide for the tenants use.

Determining the right amount of home insurance involves calculating your building sum insured and contents sum insured accurately.

For building insurance, estimate the cost to rebuild your home completely at current prices.

You can use this calculator on the Insurance Council website to help you estimate the cost to rebuild your building.

Consider:

Size and construction materials of your home.

Quality of fixtures and fittings.

Additional structures (sheds, garages).

Current building costs, including labour and materials.

Demolition and debris removal costs.

Architectural and engineering fees.

Local building regulations.

You can use online building calculators provided by insurers or consult a professional builder for a more precise estimate. It’s important to avoid underinsuring, as you may not have enough to rebuild after a major loss.

For contents insurance, calculate the replacement cost of all your belongings if bought new today. You can go room by room and list everything, including clothes, kitchenware, electronics, furniture, and valuables. Use contents calculators and maintain a home inventory with photos and receipts. Regularly update this inventory, especially after purchasing new items.

Accurate sum insured amounts are crucial to avoid being underinsured. Review your coverage annually or after significant changes to your home or possessions.

Note that limits may apply to certain contents. For example, it may not be suitable to add $10,000 for the value of a ring if the insurable limit of that ring is $1,000 under the policy.

The cost of home insurance in Australia varies significantly based on several factors, including:

Location: areas prone to natural disasters (floods, bushfires) might have higher premiums.

Sum insured: higher coverage limits for your building and contents could increase the premium.

Type of coverage: the level of cover might affect the cost of your home insurance. For example, comprehensive insurance might be more expensive than basic.

Excess: a higher excess (the amount you pay when making a claim) usually results in a lower premium.

Home characteristics: the age, construction type, and security features of your home could affect the cost.

Claims history: a history of previous claims could affect premiums.

Always read the Product Disclosure Statement (PDS) to understand what's covered.

The ideal time to get home insurance in Australia is before you become legally responsible for the property. This is particularly important when purchasing a new home.

For home buyers: most lenders in Australia require you to have home insurance (building cover) in place before or on the day of settlement as a condition of your mortgage. This ensures their investment is protected from the moment you take ownership.

For renters: while not mandatory, contents insurance could be an option to consider as soon as you move your belongings into a rental property. The landlord's insurance will cover the building itself, but not your personal possessions.

After renovations or significant purchases: if you've undertaken significant renovations that increase the rebuild cost of your home or purchased valuable new contents, review and update your policy immediately to ensure adequate coverage.

Legally, home insurance is not compulsory in Australia for homeowners. However, it’s an option to consider as there could be financial risks involved in not having it.

Mortgage: most banks and other lenders require building insurance as a condition of your home loan. This protects their investment in case the property is damaged or destroyed.

Financial protection: your home is likely your most valuable asset. Without insurance, you could potentially have to bear the entire cost of repairs or rebuilding if it's damaged or destroyed by an insured event.

Contents protection: contents insurance protects your valuable belongings, which can be costly to replace all at once. Theft, fire, or water damage can result in substantial losses.

Yes, most standard home insurance policies in Australia cover certain types of water damage, typically referred to as "escape of liquid". This generally includes sudden and accidental water damage resulting from:

Burst pipes.

Leaking or overflowing appliances (washing machines, dishwashers).

Water tanks.

Hot water systems.

However, there are important limitations and exclusions. Always check your Product Disclosure Statement (PDS) for the specific definition of "escape of liquid" and any exclusions related to water damage.

Generally, home insurance policies in Australia are not directly transferable from one property to another or from one person to another. This is because the risk assessment and premium calculation are specific to the insured address, the policyholder, and the details of the property and its contents.

When you move house:

You will typically need to cancel your existing policy for your old property. Ensure you arrange the cancellation date to coincide with the settlement date to avoid any gap in coverage.

You will likely need to take out a new home insurance policy for your new property. The premium and coverage terms will be based on the specifics of your new home and its location, including potential risks like flooding or bushfires in the area.

Some insurers might allow you to transfer the policy to your new address, but this usually involves reassessing the policy and adjusting the premium and coverage accordingly.

When selling a property, it is important for the vendor and new owners to arrange their own insurance.

To avoid any gap in coverage during a move, it's crucial to coordinate the start date of your new policy with the settlement date of your new property and the cancellation date of your old policy.

You can lodge your Home Insurance claim quickly and easily via your My Insurance Portal account. Login now to start your claim.

To lodge a claim, you'll need your policy details handy, a list of the property that has been damaged, lost or stolen and any additional documents that may support your claim.

Find out more about making a Home Insurance claim

You can contact Everyday Home Insurance from Woolworths via our phone number, 1300 10 1234. Our opening hours are Monday to Friday, 8:00am to 8:00pm (AEST/AEDT) and Saturday and Sunday, 9:00am to 5:00pm (AEST/AEDT) except public holidays.

To make a claim, please visit the Everyday Home Insurance make a claim page.