Do I really need Home Insurance?

Building Insurance: What does building insurance cover? 

Building insurance covers both the main structure as well as permanent fixtures such as kitchen cabinets, plumbing and built-in wardrobes. Depending on the policy, it may also cover any legal liability caused if someone is injured while visiting your property. If you require a mortgage on your home, lenders may also require Building Insurance before you settle your home loan.

Many homeowners underinsure their property so it’s worth knowing that Building Insurance is calculated on the rebuild value and not the market value of a property. 

In general, damage or losses caused by wear and tear or failing to maintain your property are not covered under Building Insurance.

Contents Insurance: Do I need home insurance if I own an apartment?

Most apartments in Australia are strata titled and building insurance may already be covered in the body corporate levies or in the overall residential strata insurance where the cost is shared between all owners. This type of cover is compulsory in each state and territory in Australia.

It can also be a good idea to have Contents Insurance cover for your personal belongings. Your contents could be more valuable than you think and if you had to replace them completely it could be a costly exercise. 

Contents Insurance: What does contents insurance cover? 

Contents Insurance covers your household items and personal belongings if they are damaged, lost or stolen in an unforeseen event. This can include your furniture, clothes, computer, fridge, washing machine, television, tools, art and jewellery.  

Some policies will also provide cover for your contents when you take them outside of your home (usually for an additional premium).

Is there a benefit to Home and Contents Insurance?

Taking out a Home and Contents Insurance policy will provide cover for both your building and possessions inside your home. While they are two separate policies, having them under one agreement means you have less hassle and only have one premium to pay. Depending on the insurer, you could be entitled to a combined policy discount. 

What Insurance is available for renters? 

While a landlord is responsible for your building, if an unexpected event were to cause loss or damage to your personal belongings, such as your engagement ring, watch, surfboard, TV, laptop or handbag, you could be out of pocket. 

Renters Insurance often has lower cover limits than a Contents Insurance policy and premiums can be more affordable. 

Do I need Landlord Insurance if I am a property investor? 

Landlord Insurance can provide cover for just the building, its contents or both, depending on what you choose. While many lenders may require building insurance, contents insurance can cover the fixtures and fittings including the curtains, kitchen cupboards, appliances, plumbing and carpets. Depending on the policy, it can also cover you for liability, loss of rent if the home can’t be lived in or your tenants default.