Maybe you’re renting, or maybe you’re a lucky first home buyer. Either way, purchasing home and contents insurance to protect your property and possessions in case of damage can be a daunting task and it’s difficult deciding which is for you. Never fear, we’re here to help! Here’s a summary of what you need to know.
Who needs it?
Home insurance is designed for anyone who owns a home, whether outright or with a mortgage. This insurance covers most home types, however, if you live in a strata complex like an apartment or unit you will be looking at strata insurance instead. Strata insurance covers the structure and all the common areas and property in a shared building, and may be included in your strata fees - check with your strata manager to make sure.
If you are renting, you are not responsible for home insurance – your landlord should take care of that. However, if you are renting you may be interested in contents insurance.
If you’re renting out the property you own, you can also get landlord’s insurance, which provides cover if your tenants damage your property or if they fail to pay their rent.
Home insurance covers the physical structure of the dwelling. This includes garages, sheds and fences. Under a home insurance policy, the structural aspects of your house will be covered in the case of events such as fire, flood, storm, theft and more. Word of warning: check the fine print of your policy, as often there are exclusions and limitations.
Who needs it?
Both homeowners and renters can benefit from contents insurance, as it covers items you keep in your home.
What does it cover?
Contents insurance covers the possessions you’ve accumulated over the years that you keep in your home. This includes furniture, appliances, electronics, jewellery, and other personal items. These items are covered when they are damaged, stolen or destroyed, however, the extent to which they are covered, and under what circumstances, changes from policy to policy. Check the fine print!
What doesn’t it cover?
Contents insurance doesn’t cover the physical structure of your home- that’s what home insurance is for. In the case of a fire, if you have contents insurance, only the contents items you lost will be replaced, not the entire house.
The best of both worlds!
Obviously, if you opt for both home and contents insurance you will be paying more for it, but you will be covered for both your contents items and the house itself. If you decide that you need cover for both your home and contents, it is most convenient if the policy is under one insurance company, and often combining the policies keeps it cheaper too!