Contents Insurance Guide
Understanding your contents insurance coverage is crucial when disaster strikes. Learn what's covered, what's not, and how to ensure you're properly protected.
Important: This guide provides general information only. Always read your specific Product Disclosure Statement (PDS) for exact coverage details.
What is Contents Insurance?
Contents insurance protects your personal belongings inside your home against damage, loss, or theft. This includes furniture, appliances, electronics, clothing, jewellery, and other personal items. Unlike building insurance which covers the structure, contents insurance covers everything you could take with you if you moved.
Generally Covered
- ✓Furniture and furnishings
- ✓Electrical appliances and electronics
- ✓Clothing and personal items
- ✓Jewellery and valuables (up to limits)
- ✓Tools and sporting equipment
- ✓Carpets and curtains (if tenant)
Usually Not Covered
- ✗Motor vehicles and motorcycles
- ✗Damage from wear and tear
- ✗Pest and vermin damage
- ✗Intentional damage
- ✗Items used for business (unless declared)
- ✗Illegal items or activities
Types of Contents Coverage
Replacement Value
New for old coverage
Most modern policies offer replacement value coverage, meaning damaged items are replaced with new equivalents regardless of the age of the damaged item.
Example: Your 5-year-old TV is destroyed. Insurance pays for a brand new TV of similar quality and features.
Indemnity Value
Actual cash value coverage
Indemnity policies pay the current market value of items, taking into account age and depreciation. These policies typically have lower premiums.
Example: Your 5-year-old TV is destroyed. Insurance pays what the TV was worth at the time of loss, considering depreciation.
Key Considerations
Sum Insured
The sum insured is the maximum amount your insurer will pay for all contents claims. It's crucial to accurately calculate the value of your belongings:
- Use online calculators provided by insurers
- Create a detailed home inventory with photos
- Update annually and after major purchases
- Consider inflation and replacement costs
- Don't forget items in garage, shed, or storage
Warning: Underinsurance can result in reduced claim payments. If you're underinsured by 20%, your claim may be reduced by 20%.
Specified Items
Most policies have sub-limits for valuable items. You may need to specify high-value items separately:
Common Sub-limits:
- • Jewellery: $5,000 per item
- • Watches: $5,000 per item
- • Collections: $10,000 total
- • Cash: $500
- • Electronics: $3,000 per item
Items to Specify:
- • Engagement rings
- • Expensive watches
- • Artwork and antiques
- • High-end cameras
- • Musical instruments
Excess/Deductible
The excess is the amount you pay towards each claim. Higher excess = lower premiums:
- Standard excess: Usually $500-$1,000
- Additional excesses may apply for certain claims
- Some policies have different excesses for different perils
- Consider your ability to pay excess when choosing
Making a Contents Insurance Claim
Step-by-Step Claims Process
Ensure Safety First
Make sure you and your family are safe. Call emergency services if needed.
Document Everything
Take photos and videos of all damage. Don't throw anything away until advised.
Contact Your Insurer
Call your insurance company as soon as possible. Most have 24/7 claim lines.
Complete Claim Forms
Provide detailed lists of damaged items with approximate values and age.
Provide Proof of Ownership
Receipts, bank statements, photos, warranties can all serve as proof.
Assessment and Settlement
An assessor may visit for large claims. Settlement follows approval.
Essential Tips
Create a Home Inventory
Document all belongings with photos, receipts, and serial numbers. Store this information securely in the cloud.
Review Annually
Update your sum insured yearly to account for new purchases and inflation.
Understand Exclusions
Read your PDS carefully to understand what's not covered and consider additional coverage if needed.
Security Discounts
Installing security systems, smoke alarms, and deadlocks can reduce premiums.
Bundle Policies
Combining contents with building insurance often provides discounts and simplified claims.
Keep Records
Maintain receipts, warranties, and photos of valuable items for easier claims.
Important Disclaimer
This guide provides general information about contents insurance in Australia. Coverage details, limits, and exclusions vary significantly between insurers and policies. Always read your Product Disclosure Statement (PDS) and policy documents carefully. Consider seeking professional advice for your specific situation. This information is current as of January 2025 and may change.
Need Help with a Contents Claim?
Our team specialises in contents restoration and works directly with all major insurers. We can help document damage and manage your claim process.