Home insurance in Melbourne

Home insurance (or building insurance) across Australia is a type of insurance that protects homeowners financially against structure damage during insured events. Your home building as well as any outbuildings or garages on the property are covered by this insurance policy.

However, home insurance only covers the property’s structure and does not cover any damage to the contents inside the residence.

If you want to insure your possessions inside the property, a standalone contents insurance policy may be right for you. Contents insurance can cover the replacement or repair costs of your belongings if they’re damaged or destroyed by an insured event, such as a flood, fire or electric motor burnout.

You can consider getting a contents insurance cover if you’re a renter and want to ensure that your belongings inside the home are insured.

A combined home and contents policy can cover both the building and its contents. This home insurance policy is frequently purchased by occupier homeowners who own both their building and contents.

The home and contents combined policy can cover a range of insured events (like storms and fires) as well as other scenarios like providing options such as accidental damage, motor burnout, new-for-old replacements, cover for legal liabilities and temporary accommodation if your house becomes uninhabitable. The terms and conditions can vary between insurance companies.

Along with the cover provided by standard building insurance, landlord insurance can cover intentional property damage by tenants, loss of rental income, tenant defaults, legal fees and legal liabilities. You can also add contents cover and accidental damage cover to your policy should you wish to insure any furniture or belongings you keep in your investment property.

Strata insurance is a building insurance for apartment buildings, townhouses and other types of community complexes. It covers the common areas and the building’s structure, such as the roof, walls, elevators and hallways. However, it doesn’t cover the interior of individual units (including contents), the owner’s personal responsibilities or tenant-related risks.

You don’t need home building insurance if your property is located in a building that has strata insurance, as this is organised by the body corporate. Instead, you can consider a contents insurance policy to protect your furniture and any other contents in your home.

If you take out home insurance cover in Melbourne, you’ll typically be covered for damages to your building and/or contents due to the following insured events:

• Storm and rainwater damage
• Fire and smoke damage
• Theft or attempted theft
• Escape of liquid causing damage (e.g. burst pipes)
• Lightning and explosion damage
• Malicious damage
• Earthquake or tsunami damage
• Breakage of glass causing damage.

Your contents insurance policy can cover belongings such as:

• Furniture and furnishings
• Electrical appliances
• Kitchenware
• Clothing
• Valuables such as jewellery, art or watches
• Carpets and rugs
• Blinds and window coverings.

Additionally, depending on the policy you’re looking at, you may be able to add some or all of the following optional covers to your policy for an extra cost:

Always read the relevant Product Disclosure Statement (PDS) for any insurance policy you’re considering for full details on inclusions, exclusions, limits and sub-limits. The Target Market Determination (TMD) could also guide you on whether the product is right for you.

The cost of home and contents insurance in Melbourne can vary widely based on different factors, including:

• Location: Your insurance premium may vary based on your postcode. For example, if you’re in a suburb with a higher crime rate or that’s more prone to bushfires and other natural events, your insurance premium may be higher.
• Level of cover: Your level of cover can also generally affect how much you pay for your insurance premium. Getting only buildings or content insurance will be cheaper than getting a combined home and content insurance policy.
• Sum insured: The insured amount you choose can affect your insurance premium; the higher the insured amount, the higher your insurance premium will be. When deciding on the insured amount, consider your expected rebuilding cost and the replacement cost of your belongings. Use a home and contents calculator to estimate the amount you should insure.

Some insurers might offer first-year discounts for a new policy on your home insurance. You can get a home insurance quote from our comparison service.

No, you generally do not need home insurance if you live in a building with strata insurance.

Strata insurance covers the common areas and the building’s structure (e.g. roofs, walls, lifts, hallways) and is managed by the building’s corporation. Since it doesn’t cover the contents of individual apartments, you might want to consider getting contents insurance to safeguard your possessions and give you peace of mind.

Flood insurance can be optional for home insurance in Melbourne, although some insurers may include it in their standard home and/or contents policy. Your insurance premiums, however, can vary depending on how likely flooding is in your location.

If you reside in a location that isn’t considered at risk of flooding, you may be able to drop flood coverage from your policy, lowering the cost of your house and contents insurance premium. This is also known as ‘opt-out flood cover’.

In Melbourne, bushfire-related loss or damage is usually covered as standard if you purchase home insurance. However, your area’s perceived bushfire risk may affect the cost of your insurance premiums.

If you reside in a bushfire-prone location, you should be sufficiently covered for fire damage. Designate the correct building sum to help you sufficiently rebuild your building and replace your valuables in the event of a bushfire. You can also check if your policy covers temporary accommodation if your home becomes unlivable or consider that add-on if you live in a bushfire-prone area.