What does home insurance cover?
What home insurance covers
Home insurance (also known as ‘building insurance’ or ‘home building insurance’) typically covers your home building and other fixtures on your property like sheds, garages and fences.
Here’s a list of insured events that home insurance policies cover and some optional extras that may be available through your insurer in Australia.
These lists should only be used as a guide. Always read the relevant Product Disclosure Statement (PDS) for full details on your level of cover, exclusions and optional extras. The Target Market Determination (TMD) may also help you determine whether a home insurance product is right for you.
Standard inclusions
Storm damage including lightning, hail, run off and land gales- Fire damage from bushfires or other accidental fires that may cause damage to your home
- Earthquakes may be covered but could incur an additional excess
- Malicious damage that could be caused by vandals
- Theft damages that may occur as a result of forced entry into your home
- Impact damage from vehicles or falling trees
- Escape of liquid from burst pipes and electrical appliances
- The costs of removing debris following an insured event could be covered
- Temporary accommodation may be provided if your home is uninhabitable due to an insured event.
Optional extras
As well as the standard inclusions mentioned above, insurers may offer the following optional cover with their home insurance policies:
- Accidental damage covers mishaps that cause damage to walls, fixtures and windows.
- Flood cover provides financial protection in cases where floods cause water damage to your home and surrounding property.
- Motor burnout of electrical motors from power surges could be covered by this optional extra. Food spoilage may only be covered by contents insurance policies.
Adding optional cover typically adds extra costs to your overall home insurance premium.
Meet our home and contents insurance expert, Adrian Taylor
As the Executive General Manager of General Insurance at Compare the Market, 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.