Imagine if a flood, fire or storm wreaked havoc on your home and also caused damage to your personal property – what would you do? A home insurance policy allows you to receive compensation for a specific loss or damage in return for the payment of a premium, so you can have the means to get back on your feet. If you own a house, apartment or are renting, there are certain types of insurance that will apply to you. Here are the main types of insurance and key questions to consider.
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.
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 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).
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.
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.
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.
One of the biggest risks when considering home insurance is not taking out enough cover. In the event that your home and/or contents are completely destroyed, you may not have enough money to rebuild the home entirely or replace all of your possessions.
The information contained in this article is general information only and is not specific to any product.
It does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs to these factors before acting on it.
Terms, conditions and exclusions apply to any insurance product. Please read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding.
Cover is subject to your application for insurance being accepted.
Product Disclosure Statements (PDS)
Product Disclosure Statements (PDS)
Home and Contents Insurance and Landlord Insurance are issued by Allianz Australia General Insurance Limited ABN 99 003 719 319, which is a corporate authorised representative of Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz Insurance). Bank of Melbourne – a Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 arranges the insurance under a distribution arrangement with Allianz Insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Read the Product Disclosure Statement to see if this insurance is right for you.