Money
Beyond peace of mind: make the most of your home and contents insurance
Is your home and contents insurance actually covering everything you need? Make your cover as robust as possible with these tips.
By Maddie Southall
Home and contents insurance isn’t exactly the most thrilling topic, but if disaster strikes, you’ll be glad you gave it some attention. With premiums creeping up and our homes constantly changing, it's worth doing a little homework to make sure your cover still stacks up.
Whether you’ve added a shiny new kitchen, splurged on a big-screen TV, or just want to save a few bucks, there are smart (and surprisingly simple) ways to get more value from your policy. Here are seven easy tips to help you stay protected and keep your insurance working harder for you.
1. Regularly review your policy to ensure it covers your current needs
It’s easy to set and forget your home and contents insurance, let’s face it - you’ve got more interesting things on your plate. However, if you don't review your policy often to keep it up to date, you could find yourself in a pickle later on.
If you are due for a re-evaluation, these are some of the most frequently overlooked valuables when it comes to updating policies:
- Have you upgraded your phone or laptop since you first took out this policy?
- Bought new jewellery?
- Installed a sound-system or home theatre?
Even small upgrades in these areas can quickly add up in value, and if you haven’t told your insurer about them, they might not be covered.
Taking 15 minutes once a year to check what your policy covers is a small effort that could make a big difference if you need to claim.
2. Keep an up-to-date inventory of your belongings, including photos and receipts
If you ever need to make a claim, having a detailed inventory of your belongings can be a lifesaver. It removes the guesswork and stress of trying to remember what you owned after a break-in, fire, or flood.
Start with your most valuable and important items: entertainment systems, laptops, phones, jewellery, antiques, designer pieces, or anything else you’d want to claim if it were damaged or stolen.
For each item, record a description along with the make, model, and serial number if available. Keep copies of receipts (check your emails for digital ones), store any owner’s manuals, and take clear photographs. If an item is second-hand or antique, getting a professional valuation is worthwhile – this not only confirms ownership but also helps establish its current value.
Store your inventory securely, ideally in a cloud-based system or a password-protected folder, and remember to update it whenever you make a significant purchase. A bit of effort now can make a big difference later.
3. Understand what is and isn’t covered to avoid surprises during a claim
Taking the time to understand what your policy doesn’t cover is just as important as knowing what it does. It might not be exciting, but it could save you from some serious frustration (and financial pain) if you ever need to make a claim.
For example, some policies exclude damage caused by certain natural disasters or may limit cover for high-value items unless they’re specifically listed. Knowing this upfront gives you a chance to plan ahead, whether that means adding extra coverage, putting money aside for emergencies, or taking steps to reduce risk, like improving home security or fixing a leaking roof.
Understanding your policy also brings peace of mind. When you know exactly what you're covered for, you’ll be far more confident and prepared if something does go wrong. Having a panicked look through your coverage details after damage to your home is the last thing you need!
4. Install security measures like alarms and cameras to reduce premiums
Home security does more than just keep the bad guys out, it can also help lower your insurance premiums. For many insurers, a secure home poses less risk, and less risk can mean cheaper premiums. So while installing deadlocks, security screens, cameras and alarms is a smart move for safety, it can also be a win for your wallet.
One of the most effective upgrades is a monitored back-to-base alarm system. Since these systems are actively monitored 24/7 by a professional security company, they’re seen by insurers as a strong deterrent to break-ins. As a result, you may qualify for a premium discount, as outlined by MoneySmart.
Whether it’s cameras, motion sensors, or smoke alarms, these measures not only protect your home and family, they also show your insurer you’re serious about reducing risk.
5. Ensure your coverage includes natural disasters common in your area
Is your home in a high-risk zone? Flood zone? Near bushland? In an area prone to cyclones or hailstorms? If so, it’s vital to check whether your insurance policy covers the specific natural disasters your area is at risk of. Many policies don’t automatically include cover for certain events, so assuming you’re protected can lead to costly surprises when it comes time to claim.
When you’re researching where to buy or move, it’s smart to look into local risks as part of the decision-making process. Check if the property is in a bushfire-prone area, near a floodplain, or in a region known for extreme weather. These are factors insurers take into account when calculating your premium, and knowing them can help you make informed choices – not just about your insurance, but about your home’s long-term safety and costs.
A quick phone call to your insurer or a look at your Product Disclosure Statement can confirm exactly what is (and isn’t) covered.
6. Notify your insurer of significant home upgrades or new high-value items
If you’ve recently upgraded your kitchen, added a new room, or installed new features like marble benchtops or built-in furniture, it’s time to let your insurer know. Major renovations can significantly boost the market value of your home, so if your policy isn’t adjusted to reflect that, you could end up underinsured. In the event of damage, this might mean your payout falls well short of what’s needed to rebuild or repair – and that’s never fun.
Don’t forget about your contents either. New big-ticket items like computers, powertools, TVs, or even jewellery can quickly add up.
A smart way to streamline your cover is by bundling, and it can be a great money-saver. As MoneySmart puts it: “If you own your home, you can bundle your contents insurance with your home insurance. This is usually cheaper than having separate policies.” You’ll save money and make managing your coverage a whole lot easier.
Read this too: 13 ways to save on your car insurance too
7. Opt for a higher excess to lower your premium if it aligns with your financial situation
One of the simplest ways to reduce your home and contents insurance premium is by increasing your basic excess – the amount you agree to pay out of pocket when making a claim. But how much excess should you choose? That really depends on your financial situation.
If you have enough savings set aside to comfortably cover a higher excess in an emergency, this trade-off could save you money on your regular premiums. Just be aware that opting for a higher basic excess should lower your premium, but it could also mean you’ll pay more when you claim.
It’s all about balance, choosing an excess that helps you lower costs now without leaving you financially vulnerable later. If you’re confident in your ability to cover the higher excess, this could be a smart way to cut down on what you pay year to year.
Feature image: iStock/AleksandarNakic
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