HOME CONTENTS POLICY - COVER

A typical home contents policy has the following cover:

General contents for replacement value often with limits to the cover under general contents including computer software, jewellery and watches. There are also limits to collectables such stamps and medals. However, you can extend the limits on jewellery, watches and collectables inside your home by listing the individual items and their replacement values. These items become specified jewellery, specified watches and specified collectables.

See:
specified items in a typical home contents policy.

In your policy note “items that are not contents” eg animals.

Claims are generally allowed for contents belonging to you and your family if the contents sustain loss or damage as a result of the incidents described below. There are different levels of cover depending on where the contents are.

A typical home contents policy will cover the cost of repairing or replacing certain glass items and the cost to reconnect any electrical components where electricity is connected to the damaged item. Note exclusions such as a TV set or where glass is already damaged.

A typical policy will not cover damage by animals including rodents.

A typical policy will cover loss or damage caused by subsidence or landslide that happens immediately as a result of the earthquake, water (depending upon where it escapes from), explosion (there must be physical evidence of the explosion), loss or damage caused by subsidence or landslide that happens immediately as a result of the explosion. But the company will not pay to repair or replace the item that exploded.

All of the above are subject to qualifications and restrictions which should be stated in your insurance policy. Compensation for fire is also subject to restrictions such as not covering bushfire until 48 hours after the start of the policy. Importantly a typical policy will not cover scorching or melting where no fire would have resulted. The company does not pay to repair or replace any heat or fire resistant item if it ignites.

Further cover under a typical policy is available loss or damage caused by the impact of certain items such as a branch or tree (but not for loss or damage caused by felling or lopping a tree on the site), leaking from a fixed heating system or sealed portable heater, lightning, certain malicious acts, riots, civil commotion, or industrial or political disturbances (within the first 72 hours), storm (subject to conditions and time restraints), theft under certain conditions, spoilage of food .

All of the above are subject to exemptions and conditions such as time restraints and location of the insured property. Therefore, you need to check your policy to determine such exemptions and conditions.

The most a typical policy will pay is 10% of the sum insured for general contents. A typical policy will not cover jewellery (including specified jewellery), watches (including specified watches), collectables (including specified collectables), cash, tools of trade, mobile phones and pagers, computers and their equipment and general contents.

Again the cover will subject to exemptions and conditions which are stated in your policy. Note particularly exemptions and conditions when the house is vacant and where you are in transit or moving houses.

For a Policy to cover your contents at your new home:


IN STORAGE

A typical insurance policy will cover general contents in storage when they are damaged as result of an incident above from damage to animals to theft or attempted theft . However, you must tell the insurance company beforehand:


If the company agrees, it will send you a current certificate of insurance confirming your cover. The most a typical policy will pay is the sum insured for general contents in storage shown on your current certificate of insurance. The storage cover will exclude a number of items such as cash and jewellery.

FURTHER COVER FOR PROPERTY OWNERS UNDER A STRATA OR UNIT TITLE SCHEME

FIXTURES

If your home is a strata title or similar scheme property and is damaged by one of the incidents described above from damage to animals to theft or attempted theft , a typical policy will cover built in furniture, kitchen cupboards, stoves, hot water services, and shower screens.

But the policy will not cover items if they are covered by other insurance, part of common property, or outside the walls of your home. The replacement value of the unit is covered by the owners corporation insurance policy but not that under a typical policy it will only cover improvements that has been notified by you to the owners corporation. Therefore, to make sure you are fully covered for replacement you should check the owners corporation policy.

A typical policy will not cover loss or damage to the internal wall and ceiling surfaces of your home if they are damaged by storm unless the water entered by an opening made by the storm. A typical policy will cover paint and wallpaper if they sustain loss or damage by any of the incidents described above from damage to animals to theft or attempted theft .

IF YOU ARE A TENANT OR PROPERTY OWNER UNDER A STRATA TITLE OR SIMILAR SCHEME A TYPICAL POLICY WILL PROVIDE THE FOLLOWING COVER:

COSTS IF YOU CANNOT LIVE IN YOUR HOME

If the insurance company agrees that you cannot live in your home as a result of an incident described above from damage to animals to theft or attempted theft , the company will pay for temporary accommodation that the company decide is reasonable and appropriate for you, your family and your pets, any additional living expenses that the company decide are reasonable and appropriate and removing and storing your contents and then returning them to your home.

This cover is only available if you are an owner of a strata title or similar scheme property and you live permanently in your home, or a tenant. A typical policy will pay the costs for the shorter period of up to 12 months from the time of the damage, or the reasonable time it takes to rebuild or repair your home.

The most a typical policy will pay is 10% of the total sum insured. It will pay these costs even if it has paid you the total sum insured.

FUNERAL EXPENSES

If you, or a member of your family, die as a result of an incident described above from damage to animals to theft or attempted theft , and you have made a claim for that incident, the company will pay up to $5 000 to assist you with funeral expenses. The incident must have occurred at the insured address and the death must have happened within 90 days of the incident. This is subject to general exclusions and the cause of death.

And a typical policy does not cover loss or damage as a result of non compliance with the year 2000 computer and software requirement, the cost of reinstalling or replacing electronically stored files, the cost of business interruption, loss or damage intentionally caused by you or your family or a person acting with the consent of you or your family, loss or damage that occurs outside Australia, items sent by post or courier, or on consignment, fusion of electric motors unless you have paid the additional premium for this cover and mechanical, structural or electrical failure of an item.

NB: the itemised list and policy description above is for a typical policy only. You should check your own policy to determine whether or not such items are or are not covered and whether or not similar conditions apply,

See insurance terms
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