Buying your dream home comes with new responsibilities, and insurance is one of the most important. As a homeowner, you need two types of cover: homeowners' insurance for your property's physical structure, and home contents insurance for everything inside it. If you have a bond, you'll also need life cover to protect your family from being left with the debt. This guide breaks down what each type of insurance covers, what to watch out for, and how to claim.
The same ground rules apply, whether you're insuring your building or your belongings:
Homeowners' cover (HOC) protects your house's physical structure. Your bank will usually require this cover as a condition of your home loan if you have a bond, and it's normally arranged through the bank that approved your bond.
You should also have life cover if you have a bond, so your outstanding bond can still be settled if you pass away, protecting your family from inheriting the debt.
Please note: life cover requirements and arrangements differ between banks and lenders. Confirm the specific requirements and options with your bank or bond originator.
Homeowners' insurance covers the fixed, structural elements of your property, including:
Under a standard homeowners' policy, you're usually covered for:
Important: Home repairs are usually restricted to contractors who are both bank-approved and NHBRC-registered, and who appear on your insurer's approved panel. Using a contractor outside this panel can affect your claim.
Please note: contractor panel requirements vary between banks and insurers. Confirm the specific requirements with your insurance provider before appointing anyone for repairs.
Homeowners' insurance protects the building, but everything inside it needs separate cover. Home contents insurance can be arranged through any major insurance provider or broker, and protects your possessions against theft, fire, and other damage.
It's easy to underestimate what it would actually cost to replace your belongings. A thorough audit of your possessions, and their current replacement value, helps ensure you're not underinsured when you need to claim most.
You can insure your contents in two ways:
Home contents insurance typically covers:
Always read your policy documents carefully and follow the insurer's specific requirements. This helps avoid disputes if you ever need to claim.
Contact your insurance provider directly if you need to make a claim on either your homeowners' or home contents insurance. Have your policy number, a description of the damage or loss, and any supporting documentation (photos, receipts, police case number if relevant) ready to speed up the process.
Yes. Homeowners' insurance covers your property's physical structure, while home contents insurance covers your personal belongings inside it. They're separate policies covering separate risks, and most homeowners need both.
Homeowners' insurance covers fixed structural elements like your walls, roof, geysers, and garage doors. Home contents insurance covers movable possessions like furniture, electronics, jewellery, and clothing.
Your homeowners' insurance is generally arranged through the bank that approved your home loan if you have a bond, as it's usually a condition of the bond agreement. Exact requirements vary by bank, so confirm the details with your bond originator.
Your insurance provider will cancel your cover if you miss a monthly premium payment, leaving your property or possessions uninsured until a new policy is arranged.
An excess fee is the portion of a claim you're responsible for paying yourself. Your insurer covers the remaining cost of the claim above this amount.
No. Repairs are usually limited to contractors who are bank-approved and NHBRC-registered, and who appear on your insurer's approved panel. These requirements can differ by insurer, so check your specific policy panel before appointing anyone.
Contact your insurance provider directly, either through their claims line, app, or online portal, and provide your policy details along with evidence of the damage or loss.
We cover more of what you need to know as a new homeowner in our Moving into A New Home guide.