What is home and contents insurance? ​

 

Home and contents insurance is an umbrella term for two different types of insurance:

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1. Building insurance
   
   Building insurance covers the physical structures that make up your home. This includes the house, garage, fences, driveways and certain fixtures, such as dishwashers, hot water systems and air conditioners.
    

2. Content insurance
   
   Content insurance covers the belongings you have in your home. This includes items such as your furniture, curtains, blinds, carpets, electrical appliances, clothes, shoes and handbags.

 

You can purchase building and content insurance separately or purchase them together under one policy.

 

There is also a third type of insurance, called renters insurance. If you rent your home, this could be a good option. It is usually cheaper than building insurance because it only covers accidental damage to the home.

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What does it cover? 

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Before you purchase insurance, check the terms and conditions of your policy carefully. If you do not understand, ask to speak to someone about the terms and conditions. The terms and conditions will explain what your insurance policy does and does not cover.

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Generally, most home and content insurance policies cover events such as:

• Fire or smoke (including bushfires)

• Theft or burglary

• Storms and rainwater damage

• Floods

• Lightning

• Impact damage

• Vandalism or malicious damage

• Explosions

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These are called 'insured events'. They change depending on your insurance company, and the type of policy you have. This is why it is important to check the insured events before you purchase insurance.

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Other things to consider include:
 

• The value of your belongings. Content insurance often offers the replacement value of your belongings, meaning how much it would cost for you to buy new items to replace your old belongings. Insurance policies set a limit of how much replacement cover you can claim. It is important for you to work out how much your belongings are worth now to try to determine how much cover you need.

 

• The cost of rebuilding your house. Building insurance is calculated based on the cost of rebuilding your home. You can calculate the cost using an online estimating tool to ensure that you choose an appropriate level of cover for your house.

 

• Accidental damage cover. Content insurance often does not include cover for accidental damage. If you want accidents covered, such as staining a couch or smashing a vase, then it may be worth adding accidental damage.

 

• Check the exclusions. Some expensive items are often excluded from content insurance policies, meaning that they are not covered, and you will not be able to make a claim for them. Portable items such as laptops, mobile phones and bicycles and valuable items like jewelry are often not covered. You can add these to your policy at an extra cost.

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How do I submit a claim? ​

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You can submit an insurance claim through your insurance company. You will need to check their website or call them to submit a claim. Your insurance company will probably need you to:
 

• Provide your policy information, such as your policy number
   

• Provide information about the incident, such as the date and the damage/loss you are claiming for
   

• Provide information about any other people involved
   

If you are claiming on your content insurance because of theft, then you must provide evidence of theft. You can do this by providing a police report number. This means that if your home is robbed, you must report the theft to the police before you can make a claim on your insurance.

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Where do I go if my claim is rejected? ​

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If your claim is rejected, or you are unhappy with the outcome of your claim, the first step is to make an internal complaint. This means that you complain to your insurance company. You can do this via your insurance company's website or by calling them.

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If you are still unhappy, the next step is to make an external complaint. This means that you complain to the Australian Financial Complaints Authority (AFCA). AFCA is an independent and free dispute resolution scheme that can help you with any complaints you have about insurance companies.

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You can make a complaint with AFCA:
 

1. On their website at  www.afca.org.au
    

2. By emailing them at info@afca.org.au
    

3. By calling them on 1800 931 678

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To complain to AFCA, you will need to provide them with the following information:
 

• The issue you want to complain about
   

• The outcome you want to achieve
   

• Any documents that support your complaint
   

You can complain to AFCA yourself, or you can authorise someone you trust to complain on your behalf.

It is important to know that AFCA can only consider complaints made within 2 years of the internal complaint decision made by your insurance company. If you receive an internal decision you are unhappy with, it is a good idea to complain to AFCA as soon as possible.