Contents insurance guide

What’s covered by Contents Insurance?

Contents Insurance covers what’s inside your home, including personal possessions and furnishings like curtains, furniture, white goods, electrical appliances and clothing.

An events-based contents policy usually covers you for damage caused by fire, lightning, explosion or earthquake, storms or flooding, theft or attempted theft, riots or vandalism, falling trees, moving objects (such as a car hitting your home), and escaping or leaking water or oil.

A policy that includes accidental damage protects against the cost of accidental incidents in your home like accidentally smashing the TV screen or staining a carpet. It is an optional extra on some policies.

Your Contents Insurance may also cover:

• Some accidental damage, such as glass breakage which could include damage to your furniture such as a glass tabletop
• Replacement keys and locks, and locksmith fees if your keys are stolen
• Spoiled food if your freezer breaks down
• Theft of jewellery from your home

It’s always important to read your policy documents carefully so you understand exactly what is and isn’t covered – and in what circumstances.

What about the stuff I keep outside?

Depending on your cover, your contents policy might include the contents of outbuildings, such as sheds that are locked or closed, or items in the open air within your property. Your cover limit will probably be lower when your contents are in the open air at your home. The amount of cover varies and there may be lower limits if something is stolen.

How much contents cover do I need?

The amount of cover you need depends on what you own. Use our contents calculator as a guide to the level of cover you need, and then get a quote.

How much will my contents be covered for?

This depends on your policy. Most contents policies have limits on how much you can claim for certain items, such as jewellery or art. For instance, the standard jewellery limit in a policy could be a total of $3000, but you might have an engagement ring, wedding ring and other pieces worth $15,000 in total. You can ask for special items to be listed separately in your policy – known as ‘specified contents’ – and take out additional cover to your basic cover amount. You may not pay extra for this unless your specified contents value increases the overall insured amount on your policy. Optional extras may offer you more cover.

There are limits to how much you can claim, depending on what has happened. For example, it’s hard to claim the full cost of all your frozen food if your freezer breaks down.

Check your policy closely before signing up, especially if you have a lot of valuables. Optional extras may offer you more cover.

What’s not covered by Contents Insurance?

Contents Insurance does not cover loss or damage to portable items, like jewellery, cameras, mobile phones and sporting equipment, when you take them away from your home. You can take out extra cover to protect your valuables while out and about.

What happens if I need to make a claim?

The outcome of your claim will depend on your policy and what has happened to your insured items. Your insurer can choose to repair, replace or settle a contents claim at their own discretion. Most insurers offer new-for-old cover, which means if your items are damaged or destroyed, your insurer may either pay for the full cost of repairs or replace or pay to replace items with new items.
Take the next step towards covering your valuables. Get a Contents Insurance quote today or learn more about contents insurance optional extras.

This document is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.