Home Insurance in Australia

There are several different types of insurance you can purchase for your home that can offer some peace of mind.

Home Insurance (sometimes called Building Insurance)

Home insurance covers financial losses associated with damage or loss of a property you own. Home insurance (also called property or home building insurance) is essential if you own or are buying a home. This type of insurance suits home owners but is not suitable for tenants. Home/Building Insurance can cover you for damage to your house or apartment and legal liability. Your mortgage provider usually requires you to have it if you have a home loan.

There are many different types of home building insurance policies available to suit a wide range of living circumstances. It’s important to think about your specific risks– for instance, you may live in a flood or cyclone-prone area, or near fire-prone bushland – and find a policy that covers the risks you wish to insure. Most policies cover storms, cyclones and bushfires, but not all insurers offer flood insurance.

Contents Insurance

Contents insurance covers financial losses caused by the loss, theft or damage of your possessions. Contents insurance covers the financial cost of repairing or replacing your household personal possessions and furnishings, such as curtains, furniture, white goods, stereo, TV, computers and other electrical appliances, clothing, jewellery, sporting equipment and even toys.

Contents insurance is suitable for home owners and renters. Home owners can purchase it as a stand-alone product or buy it in combination with home insurance as a home contents policy. Renters can also purchase low-cost renter’s insurance policies.

If you are a renter or tenant, your possessions are not covered by your landlord’s insurance policies. This type of insurance suits both owner/occupiers (people who own their home and live in it) and tenants.

Home and Contents Insurance

This is a single policy that combines the features of both Home/Building Insurance and Contents Insurance. It is usually cheaper to buy a combined policy rather than purchasing the two individually and in the event of substantial property damage, such as a fire, having a combined policy could eliminate the need to pay two premiums when making a claim. This type of policy suits owner/occupiers but not tenants.

Renter’s or Tenant’s Insurance

This is a low-cost contents policy for tenants that provides limited cover for events such as fire and theft. It is suited to tenants but not home owners or owner/occupiers.