Accidental damage cover
Protect your home and valuables against mishaps
Expert tips on accidental damage cover
Our home insurance expert, Adrian Taylor, has some helpful tips on accidental damage cover in your home and contents insurance policy.
Adrian Taylor
Chief Executive – General Insurance
Check the Product Disclosure Statement of your policy for this cover
Accidental damage is usually an optional extra but some policies may automatically include it. This is why it’s important to read the Product Disclosure Statement or contact your insurer to be sure.
You have options to lower your premium costs
If adding accidental damage cover to your policy increases your premiums, you may have the option to lower them by raising your policy’s excess. Keep in mind that this is the amount you may need to pay in the event of a claim, so make sure you choose a manageable amount.
You can change policies at any time
If you want to switch to a new policy, you can cancel your existing policy whenever you like. If you paid your premium upfront in full, your insurer may refund you for the remaining period of your cover; just be aware of any cancellation fees that may apply.
What is accidental damage cover in home insurance?
Accidental damage cover is a benefit in home insurance policies that provides financial protection for damages from unintended events in your home, such as accidentally smashing your TV screen, spilling wine on the carpet and breaking glass doors. Insurers may offer it as either a standard benefit or an optional extra you can add to your policy at an extra cost.
How much does accidental damage cover cost?
Adding accidental damage cover will typically increase your overall premium but the amount it’ll increase your premiums depends on your insurer and other risk factors. These factors will also determine the cost of your insurance if accidental damage cover is a standard inclusion.
Read more about home and contents insurance cost factors.
What is the most common accidental damage that happens at home?
The most common type of accidental damage is breaking fragile items, as Compare the Market survey data from October 2024 reveals that more than 2 in 5 Australians (41%) had broken items like crystalware and ceramic dishes in their homes.1 Other common kinds of accidental damage that occur in Australian homes include smashed windows and sliding doors, dark beverage spills on carpet and damage caused by pets.
Depending on your insurer, these events may be covered by accidental damage cover on your policy. Just remember that this may need to be added to both the building and the contents portions of your policy. Always read the relevant Product Disclosure Statement for full details on inclusions, exclusions and annual limits.
What’s usually included in accidental damage cover?
Accidental damage cover usually helps provide financial protection for mishaps around the house but what it covers will depend on the type of policy you take out. Accidental damage cover for home building insurance may cover walls and fixtures, while contents insurance may cover damages to ceramics, furniture and rugs.
Accidental damage cover may provide cover for the following scenarios:
- dropping your TV
- accidentally spilling red wine on the carpet
- breaking the glass on your sliding door
- breakage of some fragile items such as glass, ceramics and electronic screens.
Check the relevant Product Disclosure Statement for full details of what is and isn’t covered under your specific policy. You should also read the Target Market Determination to figure out if a product suits your needs.
What instances aren’t insured by accidental damage cover?
Some instances that accidental damage cover won’t insure include deliberate damage, general wear and tear, faulty workmanship and pre-existing damage. It also generally won’t cover damages from renovations. Exclusions may vary depending on your insurer, so always read the relevant Product Disclosure Statement for a full list of instances your policy won’t cover.
Does accidental damage cover protect all my contents?
No, accidental damage cover won’t protect all your contents, as some items such as laptops, wallets and handbags usually require portable contents cover (also known as personal effects cover), depending on the policy. You can add personal effects cover to your policy for an additional premium and it may cover accidental damage to your portable items both inside and outside of your home. A full list of items that your policy covers is generally in the relevant Product Disclosure Statement.
Find out more about portable contents cover.
Meet our home and contents expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor works to make it easier for homeowners, renters and landlords to protect their home and contents. He believes it’s important for all residents (whether they rent, own or lease) to have adequate financial cover for their property and belongings in case the worse should happen.
Want to know more about home and contents insurance cover?
1 Compare the Market commissioned PureProfile to survey 1,005 Australian adults in October 2024.