Contents insurance - Moneysmart.gov.au (2024)

FAQs

Is it worth getting contents insurance? ›

It is a good idea to take out home contents insurance to cover your possessions against fire, theft and other risks, such as accidental damage. If something happens to destroy or damage your possessions, it can cost a lot of money to replace these items.

Making a claim for freezer contents

Before you make a claim, check how much your voluntary excess is as this will usually be deducted from your payout. Unless the remaining amount will be enough to help replace the food, it's probably not worth making a claim as it may bump up your premiums in the future.

If something happens at your home, like a theft, fire or flood, and your things are stolen or damaged, you can claim for the cost to replace or repair them. For instance, if there's a fire and your TV and games console are destroyed, contents insurance could mean you can claim for the cost of repairing any damage.

Contents insurance covers your household items and personal belongings if they're damaged, lost or stolen. This can include your furniture, clothes, computer, fridge, television, tools and jewellery. If you own your home, you can bundle your contents insurance with your home insurance.

The average annual cost of contents insurance is from £53*. But keep in mind, the cost of your cover is likely to increase if you make a claim. How much you pay will vary depending on a range of factors, including: The amount of cover you need.

Your contents cover does include kitchen appliances that are free standing, such as washing machines. But if your appliance is built in, it will be covered under your buildings insurance. There's no cover for your washing machine if it breaks down.

This will cover any cash that you keep at home against theft or damage. Credit cards aren't covered – cover for these is separate. If your fridge or freezer fails or breaks down and food is spoiled, this covers you for the costs of replacing the contents.

Your home contents insurance applies to everything you own that resides within the walls of your home or apartment — your clothes, TV and other electronics, furniture, appliances, and so on. What circ*mstances they are covered against depends on the specifics of your policy.

Given inflation and rising building costs, your insurer may offer a higher sum insured than you had last year, to make sure you're sufficiently covered. This can affect your premium.

How long does a contents claim take? ›

The time it takes to process a claim can vary widely, from a few days to several months, depending on the complexity of the situation. Being aware of your policy's excess is also crucial, as it can influence whether it's financially sensible to pursue a claim.

Weighing up cost versus cover

"You need to consider if you lost those assets, in a complete loss, whether that would severely impact your financial situation, and if so then you should consider contents insurance," she says. "But obviously you need to also weigh that up against the costs of the premium."

Standard home contents insurance only tends to cover your appliances if they're damaged in a natural disaster or another insured event. Specific home appliance insurance is not part of your home insurance. It covers white goods bought from a retailer for breakdowns and accidental damage.

Protect your belongings in your home against things like flood, fire and theft. Contents insurance protects the things that make your home feel like yours. This includes your bed, sofa, computer, clothes and jewellery. If you ever lost all your possessions in a fire or flood, it would cost a lot to replace them.

Contents insurance & water leaks

The cover for contents is usually similar in that it provides cover for damage caused to your home contents such as furniture and carpets by water leaking from any fixed tank, appliance or pipe.

The difference between buildings and contents insurance is that buildings insurance covers the physical structure of the property including the walls, roof and floors, while contents insurance covers items inside the property, like furniture and freestanding appliances.

Most contents policies will have a standard excess of $250, and many home policies will have a standard excess of $400. That's why it's important to review your policy documents and check what your excess is.

So, if your TV isn't worth much more than your excess, you might find it's not worth claiming for, especially as any claim you make will cause your premium to rise when it comes time to renew.