What is accidental damage cover?
Accidental damage insurance is an optional extra you may be able to add to a standard home and contents policy, helping protect you against sudden, unexpected mishaps around the house that aren’t caused by wear and tear or lack of maintenance.
Depending on your insurer, this type of cover can apply to your home (building), belongings (contents), and sometimes even your belongings while you’re away from home.
What does accidental damage home insurance cover?
While standard home insurance generally covers events like fire, storm, theft, and escape of water, accidental damage cover protects you against those sudden, unintended incidents - like putting your foot through the ceiling while in the roof cavity or your child cracking a window with a cricket ball.
Examples of accidental damage to your building could include:
- Accidentally scraping or denting a wall while moving heavy furniture like a sofa or fridge.
- Accidentally damaging guttering while cleaning them.
Examples of accidental damage to your contents could include:
- Losing control of a gaming controller that hits the TV screen and cracks it.
- A child drawing on a couch or carpet with permanent marker.
- Accidentally knocking a laptop off a table, damaging it beyond repair.
Does accidental damage insurance cover my belongings outside my home?
Accidental damage insurance typically only protects items while they’re inside your home. If you want coverage for valuables like laptops, jewellery, or mobile phones when you’re outside your home, you may consider a portable contents policy that can help cover your belongings on the go.
What isn’t covered by accidental damage home insurance
Accidental damage cover doesn't apply in every situation. It usually won't cover damage that's not sudden or accidental, is related to business use, or is covered by another type of policy.
While exclusions may vary between providers and are detailed in the Product Disclosure Statement (PDS), some common examples include:
- General wear and tear or gradual deterioration
- Items used for business
- Deliberate or malicious damage by you or other household members or guests
- Damage caused by tenants (typically covered under landlord insurance)
- Damage during renovations or from faulty workmanship
- Pre-existing damage
- Losses caused by computer malfunction or viruses
- Cigarette burns
- Damaging sporting equipment while in use
- Swimming pools and their covers
Some high-value items, such as jewellery or electronics, may be covered but are usually subject to sub-limits. For example, a policy may only pay up to $1,000 per item unless it’s listed separately.
How much does accidental damage cover cost?
The cost of home and contents insurance depends on things like how much you insure your home and belongings for, where you live, and the type of property you own. Adding accidental damage cover will usually increase your premium because it protects you against a wider range of unexpected mishaps.
What affects the price?
Your premium can vary depending on:
- The type, age, and condition of your property
- Your location and exposure to natural disaster risks like bushfires, floods, and cyclones
- Your security features (such as alarms or deadlocks)
- The amount you choose as your sum insured (the amount you'll recieve if you home is destroyed in an insured event)
- Your excess (a higher excess usually lowers your premium, but increases what you pay if you need to make a claim)
What to check before adding accidental damage cover to your policy
Accidental damage cover isn’t identical across policies. Some insurers include it in higher-tier cover, while others offer it as an add-on. Always check the PDS to understand:
- What’s included and excluded
- Any limits on certain items
- How claims are assessed
Comparing policies can help you see how much accidental damage cover adds to your premium, and whether the extra protection is worth it for your household. You may also consider weighing up the difference between opting for a higher level of cover that includes accidental damage, or adding it as an optional extra to lower-level cover.
Is accidental damage cover worth it?
If your household is busy with children, pets, or frequent visitors, accidents like spills and breakages can easily become part of daily life. While some mishaps may be minor, you may not always have enough savings to cover the cost of repairing or replacing your belongings.
Accidental damage cover can help give you peace of mind, particularly if you have valuable items at home and are worried about potential damage. However, your insurance premium will typically increase with accidental damage cover, and it usually doesn’t cover general wear and tear or motor burnout, which may require separate cover.
If you live a lower-risk lifestyle, like being a careful single adult, you might choose to pay for minor accidents yourself rather than pay extra for insurance. It’s worth considering the cost of additional cover and your excess compared with the potential repair costs before deciding.
How to add accidental damage insurance to your policy?
You can usually add this as an optional extra to your home or contents insurance for an additional premium. Some higher-tier or premium policies may include it automatically, in which case the cost will already be reflected in your quote.
What should I do if accidental damage occurs at home?
If something in your home is accidentally damaged, here are the general steps you may follow to file a claim.
- Check your policy: Confirm the damage is covered under your accidental damage insurance and note any limits or exclusions.
- Document the damage: Take clear pictures and videos of the affected item or area. Keep receipts or proof of purchase for high-value items.
- Notify your insurer: Contact your insurance provider as soon as possible. Most insurers allow you to file a claim online, by phone, or through an app.
- Provide accurate details: Explain how the damage happened, when it occurred, and the extent of the loss. Submit any supporting documents.
- Assessment: The insurer may send an assessor to inspect the damage and confirm whether it’s covered.
- Settlement: If approved, the insurer will pay to repair or replace the damaged item, minus your excess. In some cases, your insurer may offer you a cash settlement (which you're not obliged to accept).
