Accidental damage home insurance: Protect your home from the unexpected

A home can be your pride and joy, but home ownership also means dealing with damages,  which may need a quick DIY fix or major repairs. Home insurance with cover for accidental damage can provide a financial safeguard if your home needs extensive - and expensive - repairs. 

What is accidental damage home insurance?

Accidental damage home insurance is a type of policy that covers damage to your property or belongings that occurs as a result of an unforeseen accident, and is often sold as an add-on to home insurance policies. 

Unlike standard home and contents insurance, which covers losses from specific events like theft, fire, or natural disasters, accidental damage insurance covers a broader range of incidents that happen suddenly and unexpectedly. This can include anything from a spilled glass of wine on a carpet to a cricket ball through a window.

What does accidental damage home insurance cover?

The scope of accidental damage cover can vary between policies, but common scenarios include:

• Spills and stains: Damage to furniture or carpets caused by knocking over drinks or dropping food.
• Breakages: Accidental breakage of windows, mirrors, or fixed glass.
• Electronics and appliances: Damage to TVs, computers, or other electronic devices from accidental drops or spills.
• Furniture damage: Accidental damage to sofas, tables, and other furniture from impacts or mishandling.

For example, insurance provider Budget Direct says that its most common accidental damage claims involved TVs (broken while being moved or by children throwing items at them), laptops and iPads being dropped, and lost hearing aids or jewellery in the home.

What does accidental damage home insurance not cover?

While accidental damage insurance offers broad protection, it’s important to be aware that there are exceptions and exclusions to consider, such as:

• Normal wear and tear: Gradual deterioration of items over time.
• Intentional damage: Damage caused deliberately by you or someone living in your household.
• Mechanical failure: Damage due to a product's mechanical or electrical malfunction is not considered accidental.
• Poor workmanship: Damage resulting from faulty construction or repair work.

Does accidental damage home insurance cover you outside the home?

Some policies extend accidental damage cover to personal belongings taken outside the home, but this is not universal. Coverage for items outside the home may be limited or require additional premiums, or you may need to take out portable contents insurance. 

If there is a particular high-value item that you would like insured outside the home, then it’s also possible to purchase individual cover for this one item. It's important to review your policy details or consult with your insurance provider to understand the extent of coverage for personal belongings outside your home.

Tips for choosing  home insurance with accidental damage cover

Choosing the right accidental damage home insurance policy requires careful consideration. To help you make an informed decision:

• Understand your needs:Assess the value of your property and belongings to determine the coverage you require.
• Compare policies:Look at multiple policies to compare coverage levels, exclusions, and premiums.
• Read the fine print: Pay close attention to what is and isn't covered, especially regarding exclusions and limits on claims. Read the product disclosure statement (PDS) and any other relevant policy documents to make sure you know what you’ll be covered for.
• Consider additional coverage: If you have valuable items that are frequently taken outside the home, consider whether additional coverage is necessary.
• Check the claims process: Understand how to file a claim and the process involved. A straightforward and transparent claims process can offer peace of mind.

Accidental damage home insurance offers an extra layer of protection for your home and belongings, covering a wide range of unforeseen accidents. By understanding what these policies cover, their limitations, and how to choose the right coverage, you can protect your home from the unexpected while ensuring peace of mind.

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