Contents Insurance Disaster Claims — What Is and Isn't Covered

Contents insurance covers your moveable possessions — everything inside your home that is not physically attached to the structure. In disaster claims, your contents cover is triggered by the same covered event that damaged your building: storm, cyclone, flood, fire, or water damage from an internal source.

• What is included: Furniture, appliances, clothing, electronics, sporting equipment, tools, jewellery (up to sublimits), and personal items.
• What is excluded: Motor vehicles, pets, cash and negotiable instruments, valuables above per-item sublimits (unless separately scheduled), business stock and equipment (unless specifically endorsed), and items used primarily for business purposes.
• Claims process sequence: Lodge your claim promptly, provide photographic evidence of contents damage, submit a detailed contents list with estimated values, respond to insurer requests for supporting documentation, and review the insurer's depreciation calculations before accepting settlement.
• Agreed value vs indemnity policies: Agreed value (replacement cost) policies replace damaged items at current retail prices regardless of age. Indemnity policies apply depreciation — a significant difference for older households. Check your Product Disclosure Statement before lodging to understand which basis applies.

Most contents policies impose per-item or per-category sublimits on high-value possessions. Understanding these sublimits is essential before a disaster claim — finding out about them after the event is too late.

• Typical sublimits: Jewellery and watches $2,000–$5,000 per item or per category; portable electronics $2,000–$3,000; bicycles $1,000–$2,000; works of art and antiques $2,000–$5,000 per item. These sublimits apply regardless of your total sum insured.
• How to schedule high-value items: Items worth more than the standard sublimit can be listed (scheduled) on your policy for their full replacement value in exchange for an additional premium. Most insurers require a professional valuation for scheduled items above certain thresholds.
• Professional valuation requirements: Insurers typically require a qualified valuer's certificate for jewellery, fine art, collectibles, and antiques to be scheduled. Valuations should be updated every 3–5 years as market values change.

The most effective time to prepare for a contents claim is before a disaster occurs. These steps substantially improve claim outcomes:

• Photograph everything before disaster season: Walk through every room and photograph contents systematically, including inside wardrobes, cupboards, and storage areas. Open drawers, film serial numbers on electronics. Store these photos in cloud storage (not only on local devices that may be destroyed).
• Keep purchase records in cloud storage: Receipts, bank statements, and credit card records establish purchase price and date. Even partial records are better than none.
• Challenge depreciation with comparable replacement quotes:If your insurer offers depreciated value for an item, obtain current retail quotes for the equivalent replacement product and submit these. Insurers are required to consider evidence of current replacement cost.
• Do not accept the first offer without independent review:Initial contents assessments frequently use conservative depreciation rates and may miss items. Review the insurer's assessment against your own list and raise any discrepancies formally before accepting.

Contents claims are among the most disputed in Australian insurance. Understanding the common dispute categories helps you prepare your response:

• Insurer disputes what was in the property: Without photographic evidence or purchase records, insurers may refuse or reduce claims for items they cannot verify. This is the most common and entirely avoidable dispute. A pre-event home inventory is the most effective protection.
• Depreciation disagreements: Insurers and policyholders frequently disagree on depreciation rates, particularly for electronics and appliances. AFCA has issued multiple determinations requiring insurers to recalculate depreciation using reasonable methodology and current market data.
• Contents damaged during restoration work: Contents damaged by the restoration contractor (rather than the original disaster event) may fall outside your contents cover. The contractor's public liability insurance is the appropriate avenue — which is why using NRPG contractors with minimum $20M public liability cover matters.
• Contents in shed or outbuildings: Most policies impose lower sublimits for contents stored in sheds, garages, and outbuildings — often $5,000–$10,000 regardless of the actual value stored. Tools, sporting equipment, and outdoor furniture are frequently under-covered. Check your PDS.

If your contents claim is disputed or underpaid, lodge a formal complaint through your insurer's Internal Dispute Resolution process. If unresolved, escalate to AFCA within 2 years of the claim decision.