How to understand what your home and contents insurance covers

When it comes to insurance around the home, it is important to understand what your policy does and does not cover. All policies from Allianz insurance outline the items and events that can be insured for loss or damage in the Product Disclosure Statement (PDS), however it is important to also be aware of the items or events that are not covered by insurance.

Allianz understands there are items around the home that may have high sentimental value, but little financial value. While most of these items might be covered in your contents, these are often items that cannot be replaced like photographs, love letters or drawings by your grandkids. It is just as important to safeguard those items in the event of damage or loss as it is the items that can be repaired or replaced.

Before understanding what is covered by your insurance, it is important to understand the difference between home and contents insurance and how they work if the unexpected does occur.

What is home insurance?

Home insurance (also known as property or home buildings insurance) covers you for loss or damage to your home, and can include the main residence, garage, structures like fences and gates, and other outbuildings that can be locked up; as well as permanent fixtures such as the oven and air-conditioners around the home. A home insurance policy basically covers items that make up the home, but do not fill the home. A full list of what is covered by your policy will be outlined in the Product Disclosure Statement (PDS), more on this is below.

What is contents insurance?

Contents insurance covers the physical items in and around the home that you own and are legally liable for. This can include, but is not limited to, furniture, appliances, clothes and in some policies, portable contents such as sunglasses and wallets, which are items designed to leave the home with you. These items are covered when they are lost, damaged or stolen – depending on the type of policy – and can be repaired or replaced in the event of an insured event or accident. There are various levels of cover for contents insurance, which is dependent on what and how much you would like to insure, any optional covers such as portable contents, flood and accidental damage, and if you have any special items you would like to include. Specified contents gives you the option to list high value items, like a sentimental piece of jewellery, and insure them for an agreed nominated amount which is higher than that offered under a general contents insurance policy.

Can I have both home and contents insurance?

Home and contents insurance lets you conveniently combine both building and contents insurance on the one policy. It covers the cost of repair or replacement, to your building and belongings when loss or damage is caused by break-ins, fires, natural events such as storms and bushfire1, impact damage such as a fallen tree, as well as accidental breakage of glass and more. Flood cover1 may be available as an optional cover. Plus, it can help provide financial protection if you are found liable to pay compensation following an accident, or a series of accidents at your home that has caused death, bodily injury, illness to other people and/or damage to their property.

You should consider which policy is right for your needs and your individual circumstances. An Allianz customer service team member can assist you with any questions you may have about our products. Customers with a strata, landlord, company or community titled property may need to consider whether they need buildings insurance, as in some cases, buildings cover may be the responsibility of the body corporate or similar. Customers who are renting should consider whether contents insurance is right for them.

What is a PDS?

A PDS, or Product Disclosure Statement, is a very important document which outlines the terms, conditions, limits, benefits and exclusions for an insurance policy – essentially the items that are covered and not covered by your insurer.

What is a KFS?

A KFS, or a Key Fact Sheet, is provided by your insurer to help you compare home and landlord insurance products. It is important to know that the KFS does not provide a complete statement of the coverage offered, the exclusions, conditions and limits that apply under each policy, and it should be read carefully along with the PDS and all other policy documentation so you can fully understand what is and is not covered by your policy.

What if I can’t insure some of my items?

Allianz understands while there are some sentimental items in and around the home that can be covered by insurance, such as an engagement ring, there are some items that may not – and insurance, sadly, does not cover the sentimental value of an item. It is the items that have high sentimental value, and often little financial value, that you may wish to consider safeguarding in the event of loss or damage. Allianz has created Memory Safe, in partnership with Memories.com.au, to offer the first 5,000 new and existing Allianz customers2 the opportunity to safeguard their most precious items online. To read more about how you can use this service, head to Allianz.com.au/MemorySafe

What are the key items to consider when looking to purchase a home and contents insurance policy?


1Allianz does not provide cover for any loss of or damage to your property caused by cyclone, flood, grassfires and bushfires, during the first 72 hours after you first purchase a policy or increase your cover under an existing policy.
2 5,000 Memories.com.au Premium Lifetime Subscriptions are available for the first 5,000 new and existing Allianz customers who sign up via Allianz.com.au/MemorySafe before 31 December 2021, whichever occurs first. Offer is made on a first come, first served basis.