Home contents insurance cover provides cover if your possessions require repair or replacement following certain insured incidents.
There are varying levels of cover that you can choose from and the premium you pay will increase the more cover you have. More basic cover will protect you against incidents such as fire or theft. For an increased premium, other policies will also cover against accidental damage or loss and have a higher limit that you can claim up to.
The level of cover you choose will generally depend on your circumstances. For individuals who are renting and have few expensive items, basic cover might be enough while others may want the peace of mind of a wider range of cover. To help you understand what’s important when taking out a contents insurance policy, we’ve come up with six key things to consider which might help you choose the right policy for you.
1. Valuables outside the home
Having contents insurance means coverage is available for your valuables such as laptops, smartphones or cameras, but what happens if you misplace these items outside your home?
For an additional cost, Accidental Damage Home Insurance through AANT can provide coverage for valuables away from your home. Which means you can claim for accidental loss or damaged items anywhere in Australia or New Zealand and up to 90 consecutive days worldwide. The PDS contains details of what items are and are not considered valuables and the limits applicable for unspecified valuables.
2. New-for-old replacement on items
Some contents insurance policies include new-for-old replacement on most items. This means, if your electronics or furniture are damaged, you can get them replaced with brand new ones.
3. Temporary accommodation
A water leak in the home could cause a huge amount of stress for you and your family and the damage caused to the home might mean you may have to find other living arrangements, while the damage is being repaired.
Home Insurance through AANT includes coverage for alternative accommodation. This means if your buildings or contents suffer loss or damage as a result of an incident we have agreed to cover, and you are unable to live in your home as a result, we will cover the costs of alternative accommodation for up to 12 months. The most we will pay is up to 10% of the buildings or contents sum insured as listed on the schedule.
4. Food Spoilage
There’s nothing worse than dealing with the stress of a broken freezer and losing all your frozen goods. Fortunately, some contents policies will cover the cost to replace the cost of any frozen food, if a result of an incident.
5. Veterinary expenses
We think of our pets as family, but did you know that some contents insurance policies may help you out with Veterinary expenses? With Accidental Damage Home and Listed Event Home Insurance through AANT you can get coverage for veterinary expenses up to $500 if your pet is injured as a result of a road accident.
6. Legal liability cover is automatically included
Contents insurance also includes a largely little-known type of cover called liability insurance.
Liability insurance protects the policy holder from liability if someone is accidentally injured in your home or if you accidentally injure someone outside your home, as well as providing cover as a result of an incident that causes loss or damage to someone else’s property.
What level of cover do I need?
It’s up to you what level of cover you choose to take on for your contents insurance. A basic policy will generally cover events such as fire, flood or theft, and have a lower limit that you can claim up to.
If you choose a higher level of cover, you’ll be protected for a wider range of events and can also be insured against accidental loss or damage. You might want to look for a policy which has new for old replacement for your contents too. Some policies will also provide cover if something happens to your items while you’re away from home.
Remember, it’s easy to underestimate how much your possessions are worth, so it’s a good idea to go room to room and estimate how much it would cost to replace each item. You’ll be surprised at how quickly the total adds up. Online tools, such as our Home Contents Calculator can be useful in giving you an idea of your replacement cost estimates*.
Also remember to consider more expensive items such as electronics and jewellery and speak to your insurer about including them on your policy. Review your contents insurance each year and add on any items or increase your policy if necessary. Also, hold on to any receipts for more expensive items as proof of purchase as this will make things easier at claim time.
Need help? Our consultants are here for you, speak to our team today! or get a quote online!
*Things you should know
1 Building and contents calculators are provided by CoreLogic and should only be used as a guide. These calculators' estimates may be different than estimates you get during your quote. We do not guarantee the accuracy or currency of the estimates.
Important information
Insurance distributed by Automobile Association of Northern Territory Inc ABN 13 431 478 529, an authorised representative of the issuer Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722, AFSL 227681. Any advice provided is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase a product, you should consider your personal circumstances and the relevant the Product Disclosure Statement and Target Market Determinations from aant.com.au.