Does your home and contents insurance policy cover accidental damage?

Accidental damage insurance doesn’t cover all incidents. Some exclusions may include but are not limited to:

• Damage you’ve caused deliberately;
• Damage caused by general wear and tear;
• Damage as a result of home renovations;
• Damage caused by tenants; and
• Damage caused by pests.

Each policy is different and it’s important to check the individual Product Disclosure Statement (PDS) for details.

It may be more beneficial to buy a home and contents insurance policy rather than just a home insurance policy, as this could provide cover for your belongings in addition to your house, including coverage for incidents likely to cause accidental damage. Consider checking what type of incidents the policy covers, as well as any limits, to ensure that the most damaging events are adequately covered.

For example, you may need to buy additional coverage for high-end mobile phones, or you may need fusion damage cover to replace motor wiring. While you might not be able to replace your possessions entirely, you may at least get compensation for their value. 

If your insurer only offers accidental damage cover as an add-on, you may be able to choose coverage for specific items that are most precious to you and are likely to get damaged easily.

For instance, you may have an easily breakable heirloom or collectible which you’d like to have insured. You might also consider buying accidental damage coverage if you live in a neighbourhood prone to theft, vandalism, or civil commotions. You can get an idea of the cost of adding on accidental damage coverage by comparing a range of home and content insurance policies.

While accidental damage insurance covers your belongings within the confines of your home, you can enhance your policy's protection by opting for the additional benefit of personal effects cover. This supplemental coverage extends beyond the walls of your home to safeguard the valuables that you regularly take outside.

Purchasing a home and contents insurance policy, especially one with added accidental damage coverage, may help you recover the cost of any damaged goods while in either of your homes. But such a policy may not cover what is likely the riskiest part, the transit. Adding personal effects coverage to your home and contents insurance policy may offer some coverage, but you should check with your insurer if you need to buy extra coverage.

You also need to keep in mind that your belongings may be exposed to several types of damage during the moving process. While accidental breakage is often the biggest concern, incidents such as a theft from the moving truck or an accident for which the truck’s driver is at fault are also possible. 

Consider asking your insurance provider about the coverage they offer for such damage. If your insurer doesn’t cover it, you may need to purchase specialised moving insurance. In such a case, consider asking the removalist if they can offer coverage for your possessions.

Even if you own only a few high-value items, you can’t say for sure that they won’t ever be damaged. Undertaking repairs for damaged items can prove quite expensive and may not restore the object’s value, meaning that you could end up bearing the cost and the stress.

Ensuring your home and contents insurance policy covers accidental damage could help you, both with covering the expense as well as reducing any related stress. You can choose accidental damage coverage limits based on how much you are willing to pay for the coverage.

It’s important to remember that you’ll need to pay an excess before you can claim any accidental damage.

There are a few simple steps you can take to ensure you get the most out of your home and contents policy’s accidental damage cover: 

• Consider listing the high-value items in your home, including the cost of replacing them, and then compare this list with what different insurance providers are offering.
• You can easily compare home and contents insurance policy quotes online, but also consider reading the insurance providers’ PDS to obtain full policy details.
• Once you find a policy that offers the type of coverage you’re after, you can attempt to negotiate with that insurer to include any missing items or to increase your coverage limits.