Tips and traps to avoid when renewing your home and contents insurance


It’s essential to put time and effort into thinking through what needs to be covered by your Home and Contents insurance so that should an insurable event affect your home, you have the right cover in place.

First and foremost, establish what needs to be covered, including jewellery and furniture, and whether your possessions should be covered outside the home, especially if the residents often travel. Aside from travel, consider whether possession such as bicycles, cameras, mobile phones and jewellery should be covered outside the home.

It’s important to ensure the house is covered for its full replacement cost. Online calculators can also help determine the replacement value of your home and its contents. Calculators can help guide you as to how much you should be insured for, taking into consideration elements such as rebuilding costs, the slope of the land and its location, given rebuilding costs can differ between regional and metropolitan areas. Whether the building has a heritage listing also affects the replacement costs and should be taken into account when putting in place home and contents insurance.

Home and Contents Insurance policies generally provide cover for damage resulting from Fire, Storm, Lightning Strike, Burglary and Earthquake.  Damage resulting from flood is not automatically covered by all policies, therefore it is important to question this with your Insurer or Insurance Broker if you are unsure.

Floating floorboards are also excluded in many Residential Strata Insurance Policies, therefore important to confirm this with your Insurer or Insurance Broker at the time of arranging cover.

In the event of a claim, it’s likely you will need to prove you owned the possessions for which you are making a claim. It’s an idea to photograph everything covered by the policy and ensure the photos are backed up externally or in the cloud. This means that should a fire destroy the property, for instance, there’s still evidence of the items covered under the insurance policy.

Also ensure the policy has cover for temporary accommodation so that in the event an insurable event damages the home and renders it unliveable, the residents still have a roof over their heads.

As this shows, it’s worth thinking through the policy details before taking one out to ensure the policy is appropriate for the home and its residents.

The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.