Types of Home Insurance
| Type | Cost | Who Needs It |
|---|---|---|
| Building insurance | $1,000–$2,500/year | Homeowners (required by most lenders) |
| Contents insurance | $300–$800/year | Everyone (homeowners, renters, share housers) |
| Landlord insurance | $1,200–$2,500/year | Investment property owners |
| Strata building insurance | Covered by strata levies | Unit owners (body corporate arranges) |
What Building Insurance Covers
The physical structure: walls, roof, floors, fixtures (kitchen, bathroom), fences, garages, driveways. Covers fire, storm, flood (check your policy), theft damage, vandalism, and accidental damage.
What Contents Insurance Covers
Everything you own inside the home: furniture, electronics, clothes, appliances, jewellery, artwork. Also covers items temporarily outside the home (laptop at a café, bicycle at the park) on most policies.
Common Exclusions
- Flood: Often excluded by default — add it if you're in a flood zone
- Wear and tear: Maintenance issues aren't covered
- Deliberate damage: By you or someone in your household
- Unoccupied homes: Most policies exclude claims if vacant for 60+ days
Frequently Asked Questions
Do renters need insurance?
You don't need building insurance (that's the landlord's responsibility), but contents insurance is highly recommended. If your laptop, phone, and clothes were stolen or destroyed in a fire, could you replace them? Contents insurance is $300–$800/year.
How much building insurance do I need?
Enough to rebuild your home from scratch — not the market value of the property. A rebuild cost is usually lower than market value (land isn't destroyed in a fire). Use your insurer's calculator or get a quantity surveyor estimate.