What's considered home vs contents?
The difference generally comes down to whether the structures or items are attached or permanently fixed to the building or at the home address. In other words, if it’s difficult to move, it’s probably counted as part of your building. Here’s a general breakdown of what is considered ‘home’ and ‘contents’.
Home
- The home itself, including permanent fittings like gas appliances, ceiling fans, etc.
- Outbuildings like garages, carports, sheds and granny flats.
- Permanent fixtures like water tanks, fences, decks, pergolas, balconies, etc.
- Fixed swimming pools and spas.
- Fixed outdoor items like satellite dishes, solar panels and clotheslines.
Contents
- Carpets, rugs, internal blinds, curtains, etc.
- Furniture, white goods and appliances.
- Crockery, linen and manchester.
- Phones, computers and office equipment.
- Clothing, shoes and accessories.
Home & contents optional extras (for an added premium)
Accidental damage
This add-on provides cover for damage that’s caused unintentionally by the policyholder. For example, if you’re moving furniture around the house and accidentally damage a wall or spill a drink on the carpet and it needs to be replaced. It’s available as an optional extra with any level of cover. An extra premium may apply. You may also pay an excess for an accidental damage claim, which is not your standard excess.
Portable contents cover
Also known as personal effects cover, portable contents cover provides additional coverage for the belongings you take with you when you’re out and about, such as handbags, laptops, smartphones, cameras, bikes, etc. Some insurers offering portable contents cover can insure your portable contents anywhere in Australia or New Zealand for up to 60-90 days.
Valuable contents cover
Valuable contents cover provides additional coverage for valuable items in or away from your home such as jewellery, watches, sunglasses, artwork, sporting equipment, etc. This cover allows you to specify certain items you’d like to insure, up to a limit per item. Insurers will generally provide a sum insured range for these specific items.
Injuries to pets
This optional cover provides a financial benefit for necessary vet treatment if your dog or cat is injured in an accident at your home address. It does not cover illnesses (that’s covered by pet insurance) or pre-existing conditions. GIO and RACQ provide this type of add-on.
Excess-free glass
Pay no excess to fix or replace accidentally broken glass which is part of your home, such as windows, doors, skylights, shower screens, and fixed mirrors.
Domestic workers’ compensation cover
This covers your liability to pay compensation if a domestic worker like a cleaner or gardener is injured while working at your home address.
Burnout of electric motors
This add-on covers loss or damage to domestic machines or appliances (generally less than 10 years old) if the motor burns out due to an electric current or power surge. Home appliances such as refrigerators, freezers, and washing machines often contain electric motors. This benefit is sometimes automatically included in combined home and contents policies, such with QBE and AAMI. It may also cover food spoilage as a result of motor burnout.
Commercial storage cover
This covers the loss or damage of your contents stored in a commercial storage facility due to an insured event like fire, theft or vandalism. This may be suitable if you need to put some of your belongings into storage when you’re moving location, travelling overseas, or completing renovations for example.
What does home & contents insurance cover?
This table shows what’s generally included under each level of home insurance, but inclusions will vary depending on your individual policy and insurer. Check your insurer’s PDS for the full list of inclusions, limits, sub-limits and conditions of cover.
Item | Building repair or replacement after an insured event |
|---|---|
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | No |
Item | Repair or replacement of contents |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Lifetime guarantee on home repairs |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | No |
Item | Carpets, curtains and internal blinds |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Contents in transit to your new residence |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Fire |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Theft & burglary |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Vandalism or malicious acts |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Temporary accommodation if your home isn’t liveable after an insured event |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | No |
Item | Legal liability cover |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Severe weather events (e.g. storms, cyclones) |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Floods |
Combined home & contents insurance | Yes (sometimes optional) |
Home building insurance | Yes (sometimes optional) |
Contents insurance | Yes (sometimes optional) |
Item | Damage by escaping water (e.g. leaks) or liquids |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Debris removal and extra rebuilding costs |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | No |
Item | Environmental upgrades |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Mortgage discharge costs |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | No |
Item | Broken glass or ceramics (accidental) |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Damage by explosion |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Burnout of electric motors |
Combined home & contents insurance | Yes (sometimes optional) |
Home building insurance | Yes, for fitted appliances only (sometimes optional) |
Contents insurance | Yes (sometimes optional) |
Item | Food spoilage |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Accidental damage |
Combined home & contents insurance | Yes (optional) |
Home building insurance | Yes (optional) |
Contents insurance | Yes (optional) |
Item | Home office equipment |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Security upgrades after a burglary |
Combined home & contents insurance | Yes |
Home building insurance | No |
Contents insurance | Yes |
Item | Replacement locks |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Collision (e.g. by a vehicle or an aircraft) |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Damage by impact (e.g. fallen trees, vehicles, power poles) |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Damage by animals |
Combined home & contents insurance | Yes |
Home building insurance | Yes |
Contents insurance | Yes |
Item | Portable contents cover |
Combined home & contents insurance | Yes (optional) |
Home building insurance | No |
Contents insurance | Yes (optional) |
Item | Business items |
Combined home & contents insurance | Yes (optional) |
Home building insurance | No |
Contents insurance | Yes (optional) |
| Item | Combined home & contents insurance | Home building insurance | Contents insurance |
|---|---|---|---|
Building repair or replacement after an insured event | Yes | Yes | No |
Repair or replacement of contents | Yes | No | Yes |
Lifetime guarantee on home repairs | Yes | Yes | No |
Carpets, curtains and internal blinds | Yes | No | Yes |
Contents in transit to your new residence | Yes | No | Yes |
Fire | Yes | Yes | Yes |
Theft & burglary | Yes | Yes | Yes |
Vandalism or malicious acts | Yes | Yes | Yes |
Temporary accommodation if your home isn’t liveable after an insured event | Yes | Yes | No |
Legal liability cover | Yes | Yes | Yes |
Severe weather events (e.g. storms, cyclones) | Yes | Yes | Yes |
Floods | Yes (sometimes optional) | Yes (sometimes optional) | Yes (sometimes optional) |
Damage by escaping water (e.g. leaks) or liquids | Yes | Yes | Yes |
Debris removal and extra rebuilding costs | Yes | Yes | No |
Environmental upgrades | Yes | Yes | Yes |
Mortgage discharge costs | Yes | Yes | No |
Broken glass or ceramics (accidental) | Yes | Yes | Yes |
Damage by explosion | Yes | Yes | Yes |
Burnout of electric motors | Yes (sometimes optional) | Yes, for fitted appliances only (sometimes optional) | Yes (sometimes optional) |
Food spoilage | Yes | No | Yes |
Accidental damage | Yes (optional) | Yes (optional) | Yes (optional) |
Home office equipment | Yes | No | Yes |
Security upgrades after a burglary | Yes | No | Yes |
Replacement locks | Yes | Yes | Yes |
Collision (e.g. by a vehicle or an aircraft) | Yes | Yes | Yes |
Damage by impact (e.g. fallen trees, vehicles, power poles) | Yes | Yes | Yes |
Damage by animals | Yes | Yes | Yes |
Portable contents cover | Yes (optional) | No | Yes (optional) |
Business items | Yes (optional) | No | Yes (optional) |
What isn’t covered by home & contents insurance?
Each level of home insurance will have different exclusions, depending on your policy type and insurer. However, some general exclusions that apply to all coverage levels include:
- Loss or damage due to the use or presence of asbestos
- Loss or damage due to the presence of mould or mildew
- Loss or damage arising from insects, vermin or rodents
- Loss or damage from building renovations or any construction works
- Existing chips and scratches
- Wear, tear or gradual deterioration of any part of the home/unit
- Defects, structural faults, or design faults
- Chemical damage when cleaning
- Damaged caused by tree lopping
- Loss or damage from biological, chemical, other pollutants or contaminants
- Legal liability for communicable disease (e.g. if someone contracts an infectious disease at your property)
- Movements of the sea, high water, or underground water
- Aircraft shockwaves (e.g. plane vibrations)
- Loss or damage caused by your deliberate or reckless actions
- Legal liability from business activities undertaken at the address
- Loss or damage as a result of a cyber attack
Refer to the insurer’s PDS for the full list exclusions, limits and conditions.
How much does home insurance cost?
Home and contents insurance can cost between $100-$400 per month, based on an analysis of a selection of quotes for various home addresses obtained by Money.com.au. The amount you pay each month or year for your insurance is called a premium.
Based on our findings from comparing quotes, premiums vary significantly depending on:
- The type of home you have
- How much you insure your home & contents for
- Your overall risk profile
Example cost comparison of home & contents insurance
This example shows the cost difference between combined home and contents insurance and standalone coverage for building-only and contents-only from selected providers.
Insurer | Budget Direct |
|---|---|
Home & contents insurance cost per year | $1,157.27 |
Building-only insurance cost per year | $1,099.84 |
Contents-only insurance cost per year | $289.55 |
Insurer | QBE |
Home & contents insurance cost per year | $2,380.40 |
Building-only insurance cost per year | $2,094.32 |
Contents-only insurance cost per year | $420.86 |
Insurer | Suncorp |
Home & contents insurance cost per year | $1,286.25 |
Building-only insurance cost per year | $1,163.82 |
Contents-only insurance cost per year | $316.80 |
Insurer | Youi |
Home & contents insurance cost per year | $1,685.93 |
Building-only insurance cost per year | $1,512.55 |
Contents-only insurance cost per year | $385.21 |
| Insurer | Home & contents insurance cost per year | Building-only insurance cost per year | Contents-only insurance cost per year |
|---|---|---|---|
Budget Direct | $1,157.27 | $1,099.84 | $289.55 |
QBE | $2,380.40 | $2,094.32 | $420.86 |
Suncorp | $1,286.25 | $1,163.82 | $316.80 |
Youi | $1,685.93 | $1,512.55 | $385.21 |
Factors that impact your home & contents insurance premiums
1
Your level of cover
Whether you choose a combined home and contents policy or a standalone building insurance or contents-only policy. Combined policies provide coverage for a broader range of insured events and, therefore, cost more than standalone policies.
2
Optional extras you choose to include
Any optional cover, such as accidental damage or portable contents cover, typically comes with an added premium.
3
Your sum insured
This is the estimated cost to rebuild your home and/or replace your contents at today's prices. You’ll be given a sum insured range for your building and the items inside your home. The higher your sum insured, the higher your premium will be.
4
If you increase your cover limits
Increasing your cover limits for your home and/or contents will generally increase your insurance premiums. This also applies to specified contents listed on your policy (if you increase coverage for valuable possessions like jewellery and watches).
5
Your policy excess
Increasing your excess (the out-of-pocket sum you must contribute towards a claim) can lower your premium and vice versa. Most insurers allow you to adjust your excess to increase or decrease your premium.
6
Your claims history
You may pay a higher premium if you’ve made an insurance claim for your home and/or contents (including personal effects) in the last 3-5 years. Some types of claims impact your home insurance more than others. For instance, a break-in may be related to the overall safety of your home or its location.
7
The characteristics of your home
Whether you’re insuring a freestanding home, townhouse, unit or semi-detached duplex. This will include the number of bedrooms, bathrooms and living areas. Additionally, the materials used in construction, such as the composition of external walls and the roof, will be considered.
8
The permanent fitting and fixtures at your home address
This will include ducted cooling and healing, pools, spas, sheds, granny flats, and tennis courts. All these elements impact the value of your home, your sum insured, and therefore, your premium.
9
If your home is elevated or located near bushland
Some insurers will ask that you specify if your home is on a sloped block, elevated above ground (e.g. stilt home) or near a grassland or bushland. Homes on sloped blocks or elevated blocks might face different risks, such as erosion or increased vulnerability to severe weather events. Properties near grassland or bushland may be more prone to wildfires.
10
If you have solar power
Solar panels are considered a permanent fixture of the home and are generally covered under home and contents insurance. In some cases, you may need to increase your coverage, which may impact your premium.
11
Your security systems
You may pay a lower premium if your home is fitted with a working security alarm/camera or smart sensors, as these devices can deter intruders and prevent accidents like a fire. For example, Honey and BOQ offer $250 worth of complimentary smart sensors if you select this option on eligible policies, and you can receive an 8% premium discount on top.
12
If your home is used as a place of business
You may pay an additional premium if you conduct business activities in your home, including, buying, selling or storing business products and offering services. This is because it may be considered more risky. For example, there might be valuable business equipment on the premises, more people in the home during business hours, or a higher risk of accidents related to business operations. According to Budget Direct, working remotely from home is not considered a business activity.
How to save on your home & contents insurance
Here are some ways you can reduce your home & contents insurance premium:
- Increase your excess: Choosing a higher standard excess can lower your premium, although your out-of-pocket expenses will be more if you make a claim. Be sure to choose a basic excess you’re comfortable with should you need to make a claim.
- Pay your premium annually: Some insurers offer discounts when you pay your home and contents insurance premiums upfront (annually), instead of monthly. Most will let you know which payment option provides better value. Alternatively, some insurers allow you to pay monthly at no extra cost.
- Consider a combined building & contents policy: You may get a discount when combining building and contents cover compared to buying each cover as a standalone policy. For example, Allianz offers a 10% discount if you buy building and contents cover under one policy.
- Buy your home insurance policy online: Many insurers offer discounts when you buy a policy online directly via their website. For example, Budget Direct offers 30% off your first year's premium for a new policy purchased online.
- Secure your home: Installing security features or devices in your home can reduce the risk of theft in the eyes of insurers and, therefore, your premium. Security devices can include cameras, smart sensors, sirens, and even strobe lights.
