Home and contents insurance can be easy to set and forget. Many homeowners, renters and landlords renew their policy each year without closely checking what is included, what has changed, or whether their cover still reflects the value of their home and belongings.
Depending on your insurer, policy type and optional extras, your home and contents insurance may include cover for situations you have not considered. It may also exclude situations you assumed were covered. This is why understanding the fine print of your insurance coverage matters before you need to make a claim.
That is why it is important to read your Product Disclosure Statement, check your policy schedule and speak with an insurance broker if you are unsure.
Below are several areas of cover that may appear in some home and contents insurance policies, along with common limits, conditions and exclusions to look out for.
1. Accidental Breakage of Glass or Sanitary Fixtures
Some home insurance policies may include cover for accidental breakage of fixed glass or sanitary fixtures.
This may include items such as:
- Fixed window glass
- Shower screens
- Glass doors
- Basins
- Baths
- Toilets
- Other fixed sanitary fittings
However, cover can vary significantly between policies. Some policies may only cover fixed glass that forms part of the building, while others may offer broader accidental damage benefits if selected.
Common exclusions or limitations may apply to:
- Glass in televisions, monitors or display units
- Glass in furniture
- Scratching, chipping or denting
- Items already damaged before the claim
- Outdoor glass structures, depending on the policy
- Damage caused by wear and tear or poor maintenance
It is worth checking whether accidental glass breakage is included automatically or only available as an optional extra.
2. Electric Motor Burnout
Electric motor burnout, sometimes called fusion cover, may be included in some home insurance policies or available as an optional extra.
This type of cover may apply when an electric motor burns out due to an electrical current. It may be relevant for domestic appliances and equipment such as:
- Fridges
- Freezers
- Washing machines
- Dishwashers
- Air conditioning units
- Pool pumps
- Garage door motors
However, policies often place conditions around motor burnout claims. There may be limits based on the age of the motor, the cause of the damage, whether the item is still under warranty, or whether depreciation applies.
Common exclusions may include:
- Motors covered by a manufacturer’s warranty
- Heating elements
- Fuses or protective devices
- General mechanical failure
- Wear and tear
- Additional parts or service items
- The cost of accessing or reinstalling some equipment, depending on the policy
If your home relies on equipment such as air conditioning, pumps or refrigeration, this is one area worth checking carefully.
3. Escape of Liquid
Escape of liquid is one of the more common areas of home insurance, but it is also one of the most misunderstood.
This type of cover may apply when liquid suddenly leaks, bursts, escapes or overflows from certain fixed systems or household appliances.
Examples may include:
- Burst pipes
- Washing machine hose failures
- Dishwasher leaks
- Overflowing sinks, baths or basins
- Hot water system leaks
- Water tanks
- Fixed plumbing systems
- Some refrigerator or freezer water connections
Some policies may also include reasonable costs to locate the source of a hidden leak, but this depends on the wording of the policy.
Common exclusions may include:
- The cost of repairing the defective part that caused the leak
- Gradual leaks over time
- Damage caused by poor maintenance
- Shower recess leaks
- Water entering because of defective waterproofing
- Mould or rot caused by long-term moisture
- Leaks from structures or systems not covered by the policy
The key issue is often whether the damage was sudden and unexpected, or gradual and maintenance-related.
4. Debris Removal and Demolition Costs
If your home or contents are damaged by an insured event, your policy may include cover for reasonable debris removal, demolition or disposal costs.
This can be important after events such as:
- Fire
- Storm damage
- Flood damage, where flood is covered
- Fallen trees
- Impact damage
- Major water damage
After a serious event, clean-up costs can be significant. This may include removing damaged building materials, ruined contents, fallen branches, fencing, roofing, flooring or other debris.
However, policies vary. Some may include debris removal in addition to your sum insured, while others may include it within the total sum insured. Some policies may also limit what will be removed, where it can be taken, or what costs are considered reasonable.
This is worth checking because debris removal can affect how much cover is left for repairs or replacement.
5. Temporary Accommodation
If your home becomes unliveable after an insured event, your home insurance may include temporary accommodation cover.
This may help with the cost of alternative accommodation while your home is being repaired or rebuilt after an event such as fire, storm, water damage or another covered event.
Important things to check include:
- Whether temporary accommodation is included
- Whether it applies to homeowners, tenants or landlords
- The maximum dollar limit
- The maximum time period
- Whether pet accommodation is included
- Whether the policy covers similar standard accommodation
- What evidence is required to support a claim
For landlords, a related benefit may be loss of rent after an insured event, depending on the policy and whether landlord insurance is in place.
6. Contents in the Open Air at Your Home
Some contents policies may provide limited cover for items kept in the open air at the insured address.
This may apply to belongings located in areas such as:
- Patios
- Verandahs
- Balconies
- Carports
- Yards
- Outdoor entertainment areas
Examples might include outdoor furniture, barbecues, garden tools or sporting equipment.
However, this cover often has strict limits and exclusions. Some policies may limit claims for theft, storm damage or items left unsecured. Others may exclude certain items altogether.
Common exclusions may apply to:
- Mobile phones
- Laptops and tablets
- Cash
- Jewellery
- Tools or equipment used for business
- Items damaged by animals
- Items left in the open for long periods
- Items not designed for outdoor use
If you regularly keep valuable items outside, this is an important section of the policy to review.
7. Landscaping, Plants and Outdoor Features
Some home insurance policies may provide limited cover for landscaping that is damaged by an insured event.
Depending on the policy, this may include:
- Trees
- Shrubs
- Plants
- Garden beds
- Lawns
- Retaining walls
- Paved areas
- Outdoor structures
However, cover for landscaping can be narrow. Some policies only cover damage caused by specific events, such as fire, theft, vandalism or vehicle impact. Storm, flood or weather-related damage to plants and landscaping may be excluded or heavily limited.
There may also be sub-limits per plant, per claim or per period of insurance.
This is especially relevant for homeowners who have invested significantly in outdoor areas, gardens, retaining walls, pools, fencing or landscaping.
8. Portable Contents Away From Home
Some contents policies may offer portable contents cover, either as an inclusion or optional extra.
This may cover certain belongings when they are taken outside the home, such as:
- Handbags
- Wallets
- Jewellery
- Glasses
- Cameras
- Bicycles
- Mobile phones
- Laptops
- Tablets
- Watches
- Sporting equipment
Portable contents cover can be useful, but it usually comes with conditions. There may be per-item limits, exclusions for unattended items, location restrictions, or requirements to list higher-value items separately.
You may also need to provide proof of ownership, such as receipts, valuations, photos, serial numbers or appraisals.
If you regularly carry valuable items away from home, it is worth checking whether they are covered outside your address.
9. Replacement of Locks and Keys
Some home and contents policies may provide cover for replacing locks and keys after theft, attempted theft or unauthorised access.
This may apply if keys are stolen or if there is a risk that someone could gain access to your home.
However, policies may limit the amount payable, require a police report, or only respond where the theft of keys is linked to an insured event.
With modern homes increasingly using smart locks, remotes, garage door openers and electronic access systems, it is worth checking whether your policy wording has kept up with the way you secure your property.
10. Environmental or Energy-Efficient Upgrades
Some insurers may offer environmental upgrade benefits after a major insured loss, particularly where a home is being repaired or rebuilt.
Depending on the policy, this may include contributions towards:
- Solar power systems
- Solar hot water
- Rainwater tanks
- Energy-efficient appliances
- Water-saving systems
- Greywater systems
- Other sustainable upgrades
These benefits are not standard across all policies and may only apply after certain insured events or total loss situations.
If sustainability is important to you, ask whether your policy includes any environmental upgrade benefits and whether limits apply.
11. Food Spoilage
Some contents policies may cover food spoilage if food in your fridge or freezer is ruined because of an insured event.
This may be relevant after:
- Power outages caused by storms
- Motor burnout
- Accidental damage to a fridge or freezer
- Electrical events, depending on the policy
There may be a limit on the amount payable and conditions around the cause of the spoilage. In some cases, the excess may make a small claim uneconomical, so it is worth checking the policy details.
12. Legal Liability
Home and contents insurance may also include legal liability cover.
This can help protect you if you are found legally responsible for injury to another person or damage to someone else’s property.
For example, legal liability may become relevant if a visitor is injured at your property or if you accidentally damage another person’s property.
The wording, limits and circumstances vary between policies, so it is important to understand when liability cover applies and when it does not.
Why Reading the Policy Matters
Two home and contents policies can look similar on the surface but differ significantly in the details.
Before choosing or renewing your policy, check:
- What is included as buildings
- What is included as contents
- What insured events are covered
- Whether flood cover is included or excluded. This is especially important before storm season, when homeowners should understand how their policy may respond to storm, flood or water damage.
- Whether accidental damage is included or optional
- Whether portable contents are covered away from home
- What sub-limits apply to valuable items
- Whether temporary accommodation is included
- Whether debris removal is included within or on top of the sum insured
- What exclusions apply
- Whether your sum insured reflects current rebuilding and replacement costs
It is also a good idea to keep a home inventory. Photos, videos, receipts, serial numbers and valuations can make it much easier to support a claim.
Talk to Westlawn Insurance Brokers
Home and contents insurance is not just about having a policy. It is about understanding what that policy may do for you when something goes wrong. Real claim situations often show why the right cover and broker support can matter when Australians need to bounce back after loss or damage.
If you are unsure whether your current cover is suitable, Westlawn Insurance Brokers can help you review your options and understand key areas such as accidental damage, flood cover, contents limits, portable valuables, temporary accommodation and underinsurance.
Westlawn Insurance Brokers supports clients across Grafton, Casino, Lismore, Murwillumbah, Coffs Harbour, Ballina, Walcha, Robina, Brisbane and surrounding areas.
To speak with a Westlawn Insurance broker, contact the team today.
Call: 1300 937 852
Notice: General advice only. This article does not take into account your personal circumstances, objectives or needs. Cover is subject to the terms, conditions, limits and exclusions of the relevant policy. You should review the Product Disclosure Statement and Target Market Determination and speak with a qualified insurance professional before making decisions about insurance.