What types of home insurance are there?

Home and contents insurance are often mentioned in the same breath, and many insurance providers sell them as a package deal, but they are two different types of insurance that cover two different things. 

Whether you’re an owner occupier, a tenant or an investor, it’s important to know you’re covered with the right kind of home insurance - in fact, having insurance may be a requirement of your mortgage.

Home insurance

Home insurance, often referred to as building insurance or home-only insurance, is designed to cover the physical structure of your home against damage or loss caused by events such as fires, storms, theft, and more. Home-only insurance covers the cost of repairs or rebuilding your house, and may include other structures on your property like garages and fences.

Contents insurance

Contents insurance insures your belongings - the contents of your home, in other words - against loss, theft or damage. Contents insurance covers a range of items, from furniture, to electronics, to appliances. If you want specific cover for a more expensive item, such as a watch or another expensive piece of jewellery, single-item insurance is also available.

Home and contents insurance

Home and contents insurance is a bundle of two separate types of insurance, which insurance providers often sell together as a package deal. In some instances, if you purchase both home and contents insurance from the same provider, they may offer a discount for combining your policies. By taking out home and contents insurance, you will cover both the structure of your property, and your possessions inside.

Landlord insurance

Landlord insurance is a particular kind of home insurance intended for property owners renting out their properties. This type of insurance is designed to protect landlords from the financial risks associated with renting out a property, including damage by tenants or natural disasters, liability protection, and loss of rental income.

Renters insurance

Renters insurance, also known as tenant's insurance, provides coverage for personal belongings within a rented property. It protects renters against theft, damage, and sometimes liability claims, offering peace of mind for those leasing their home.

Body corporate insurance

Body corporate insurance, or strata insurance, is mandatory for strata titles and covers common or shared property within an apartment or townhouse complex, such as gardens, lifts, and swimming pools. It's important for protecting against public liability claims and damages to communal areas of the property.

How can I find the right home insurance policy?

The right home insurance policy for you will be one that meets your particular needs while being affordable. Some tips to guide you include:

• Assess your needs: Determine the level of cover required for your property and belongings, and whether you wish to purchase both home and contents insurance. Consider factors like the value of your home, the risks in your area (e.g. crime, natural disasters like fire and floods), and whether you need additional cover for specific items.
• Do your research: To find a suitable insurance provider for you, it pays to compare as many policies and providers as you can. It can be worthwhile not just comparing policy prices, but also the type of coverage offered, exclusions, and excess amounts.
• Read the fine print: Understand the policy's inclusions, exclusions, and conditions. Read the product disclosure statement (PDS) and any other relevant policy documents and pay attention to what's covered and what's not to avoid surprises during a claim.
• Consider value as well as cost: While budget is important, the cheapest policy may not always offer the best value, and may leave you underinsured. Balance cost with the level of protection provided.
• Update regularly: Your insurance needs may change over time, such as if building costs rise.  It may pay to update your home’s replacement cost every few years, to ensure that you don’t lose out and end up underinsured if you need to make a claim.

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