Compare contents insurance

Portable contents cover, accidental damage and flood protection are some of the optional extras available to extend standard contents insurance policies.

Optional extras are additional cover options that can be added to your policy, usually for an extra premium, to provide protection against risks that may not be included in standard cover.

Some optional cover that might be available in contents insurance products include:

• Accidental damage cover: Can be added to your policy to help protect your home’s contents from accidental loss, breakages and damages, such as broken glass, spilled wine or dropping your TV.
• Portable contents cover: Provides financial protection for everyday items you take out of the house with you regularly (like mobile phones, laptops and jewellery). Portable items are generally covered across Australia and New Zealand.
• Motor burnout cover: Insures appliances (like fridges and washing machines) when their electric motors are damaged by power surges and electrical currents.
• Specified contents cover: Allows you to increase the cover limit for specific items, such as works of art, jewellery and collectibles. This could be handy if your standard coverage limits wouldn’t cover the cost of replacing these expensive items.
• Flood cover: Can replace or repair your belongings if they’re damaged or lost due to flooding. This isn’t always included in standard cover, so you may need to add this extra if it’s cover you want.
• Commercial storage cover: If you’re moving, upsizing or downsizing your home, contents insurance could cover losses that may occur to your belongings in storage.

Contents insurance doesn’t cover your home building or permanent fixtures or fittings at your property, such as fences, sheds, fitted kitchens and built-in wardrobes. You’ll need home building insurance (which can also be combined with a contents policy) to safeguard these structures.

Common contents insurance exclusions are:

• leaving your home unoccupied for an extended period (e.g. 60 consecutive days)
• war, terrorism, civil commotion and rebellious uprisings
• deliberate or wilful damage
• illegal activity
• tree lopping
• general wear and tear
• existing damages and poor workmanship
• damage from animals and insects.

Standard contents insurance doesn’t cover items away from home unless you add portable contents cover as an optional extra. Portable contents cover is often available as an add-on and can provide cover for items you regularly take outside the home.

Depending on the policy, portable contents cover may help protect items such as:

• laptops
• mobile phones
• jewellery
• watches
• sporting equipment
• other personal valuables

Portable contents cover is typically available for an additional premium and may be subject to conditions, exclusions and item limits. Check the PDS to understand what items can be covered and when cover applies.

If you’ve got power tools stored in your shed or garage, these can be covered by contents insurance. However, if you use these power tools for a business instead of personal use, you may need another type of cover to insure them (e.g. a business insurance policy).

Contents insurance could cover sports equipment you keep at home, but equipment like bicycles that you take outside the home may require extra cover (e.g. portable contents cover).

While sports equipment may be covered for the events listed in your policy (such as fires and storms), it might not be covered if it’s damaged while in use.

You will need contents insurance to help cover your personal belongings if they’re damaged, lost or destroyed by an insured event. As a renter, you’re responsible for the contents inside your home and if you don’t have content insurance you will generally have to pay to repair or replace your furniture, electronics, clothing and other possessions following an unexpected event like fire or theft.

Some people assume their personal belongings are covered by their landlord’s insurance policy, but this is generally not the case. A landlord insurance typically covers the home building for an investment property, while contents insurance covers the belongings you own as a tenant.

Contents insurance can help protect your personal belongings inside your apartment or unit, which aren’t usually covered by strata insurance.

If you live in an apartment, unit or other strata-titled property, the building and common areas are usually covered by strata insurance arranged by the body corporate. This can include things like the building structure, roofs, exterior walls, lifts and shared facilities. However, strata insurance doesn’t cover your personal belongings, so you may still need contents insurance to protect the items you own at home. Depending on your content insurance policy, cover can include:

• damage to or loss of the items you own caused by insured events such as storm, fire, theft and flood
• legal liability cover
• electrical motor burnout cover
• cover for certain fittings that aren’t covered by strata insurance (for strata owner-occupiers) or that you’re responsible for under your lease agreement (for renters).

You may also be able to add optional extras, such as accidental damage cover or portable contents cover, depending on the insurer and policy.

To make a contents insurance claim, contact your insurer as soon as you can after your belongings are lost, stolen or damaged. You’ll generally need to provide evidence of the loss or damage. Your insurer will assess the claim against your policy and may ask for more information before deciding whether to repair or replace your items or provide another form of settlement.

Before you claim, check your policy’s PDS to see whether the event is covered and what excess applies. For theft, vandalism or malicious damage, you may also need to report the incident to the police and provide the report or incident number.

To make a contents insurance claim, you’ll generally need your policy number and proof of ownership, such as receipts, photos, serial numbers, to support the items listed in your home inventory.

Your claim may include:

• your policy details and information about what happened, including the date and location
• a list and description of the belongings that were lost, stolen or damaged
• photos showing the items or damage
• proof of ownership or value, such as receipts, bank or credit card statements, valuations, product manuals or original packaging
• serial numbers, model numbers of electronics or other details that help identify an item
• a police report or incident number for theft, vandalism or malicious damage.

Keeping a home inventory with photos, receipts, serial numbers and valuations can make it easier to show what you owned and its value when you make a claim.

Yes, you can make a contents insurance claim without the original receipt, provided you can prove ownership of the item you’re claiming for.

Luckily, there are many ways of showing ownership without having a receipt, such as:

• bank or credit card statements
• photos of the item
• valuations
• photos or instruction manuals
• original packaging
• a duplicate receipt from the retailer.

High-value belongings, such as jewellery or artwork, may require a certain minimum of proof for assessment, such as a purchase record or professional appraisal. Always check your PDS or speak to your insurer about what evidence they will accept for your claim.

You’ll need to contact your insurer to update your details if you move, as your location can influence your insurance premiums. For example, if you move to a suburb that has a higher rate of break-ins or is in a bushfire zone, your premiums may change to reflect the risk.

You can help lower your contents insurance costs by increasing your excess, comparing a range of policies and bundling your contents insurance with other policies, such as home building or car insurance. Some ways to reduce the price of your policy include:

• Increasing your excess. If your insurer offers this option, you can choose a higher excess to help lower your premiums. Before increasing your excess, consider whether you can afford to pay a higher excess amount if you need to make an insurance claim.
• Purchasing insurance online. Many insurance companies offer an online discount for the first year if you purchase a new policy through their website.
• Paying premiums annually. Paying your premiums once a year could save you in the long run, as monthly instalments often attract extra costs.
• Bundle your policies. You may get discounted premiums on some of your policies if you take out more than one product with the same insurer (e.g. contents and car insurance).

Contents insurance can be worth it if replacing your belongings after a fire, theft, storm or another insured event would put you under financial pressure. Even everyday items such as furniture, appliances, electronics and clothing can add up to a significant replacement cost.

Whether it’s worth it for you comes down to the value of your belongings, the risks you want cover for and how comfortably you could replace them yourself. It’s always worth comparing the cost of the premium and excess against the cover provided before choosing a policy. If you use Compare the Market, our contents insurance calculator can help you estimate your contents sum insured.

There is no single best contents insurance policy in Australia, as a great policy for you will depend on your circumstances, the value of your belongings and the type of cover you need. Some things you might consider when looking for a contents insurance policy may include:

• Standard inclusions. These can vary depending on your insurer. For example, some might include flood cover as standard, while others may require you to purchase it as an optional extra.
• Policy limits. Would standard policy limits be adequate for all your possessions? Or do you need extra cover beyond the standard policy limits for some of your more valuable items?
• Optional extras. Adding optional extras to your policy could be a great way to tailor your policy to your needs. Just keep in mind that these typically attract additional premiums.

Read the PDS and Target Market Determination to ensure the insurance product suits your situation.