Accidental damage cover

Accidental damage cover is typically an optional extra added to your home and contents policy for damages as a result of an unforeseen and unintended event, unlike a defined event that’s listed under your policy. There may be some home and contents insurance providers who include accidental damage as standard.

Nobody means to break the fine China, scratch the walls or scorch the benchtops with your hot pans. However, no matter how careful we are, accidents can still happen. This policy add-on provides financial protection for accidental damage to your home and contents such as:

• Dropping your TV
• Breaking the glass on your sliding door
• Breakage of some fragile items like glass, ceramics and electronic screens.

Make sure you check the relevant Product Disclosure Statement (PDS) for full details of what is and isn’t covered under your specific policy.

Accidental damage is typically defined in insurance terms as loss of value or damage caused by an unforeseen and unintended event, not from a deliberate act or other defined event. Some examples of accidental damage in real life can include:

• A guest spilling red wine all over your carpet at a dinner party
• Your television breaking because of a rowdy kids’ game gone wrong
• A crystal vase being knocked over and broken

However, there will be some exclusions to your accidental damage coverage and not all items or events may be covered.

If you’re considering adding this optional extra to your home and contents insurance cover, it’s important to check your PDS to see exactly what insured events are covered as inclusions and exclusions can often differ between policies and insurers.

The table below provides a snapshot of events and damage and whether they’re covered if you have an accidental damage cover add-on; keep in mind that your particular cover will vary based on your insurer and the terms of your policy. Note that a combined home and contents insurance policy with accidental damage cover will generally cover both your home building and your contents as set out below.

There are some exclusions to home insurance and accidental damage, regardless of your level of cover. Insurance claims for the following scenarios likely won’t be accepted:

• General wear and tear to your home and possessions
• Deliberate, malicious damage by yourself, other residents or your guests
• Faulty workmanship.

Check your PDS for the full list of inclusions and exclusions in your policy documents, as well as other terms and conditions in your contents or home insurance.

There are some exclusions to which items and possessions are covered. Common exclusions can include electronic devices like laptops, mobile phones, media systems, remote control toys or models and sports equipment if the damage is sustained while in use.

Mishaps can happen at home, and when they do, it’s a relief to know you have the right insurance, which is why it’s important to consider accidental damage cover. For any accidental damage to your contents while away from your home, consider adding personal effects cover to your policy for better all-round protection of your belongings.

Adding accidental damage insurance cover to your home and contents policy will increase your premiums, as would adding any optional cover. Overall, the cost of your insurance will depend on a variety of factors. All of which should be weighed into your considerations.

Factors that impact your premiums may include the value of your belongings and the building, your address, whether your area is prone to natural disasters and more.

Not all of us are fortunate enough to have savings on hand to cover life’s little mishaps, so insuring yourself against loss and damage can be your security blanket.