Home and contents insurance exclusions

Exclusions are specified events or scenarios that insurers do not provide cover for and which policy holders therefore cannot make a claim on. They will typically be listed in the product disclosure statement (PDS) or other terms and conditions of your policy.

Although terms and conditions will vary between insurance providers, there are some common home and contents exclusions which may be worth knowing about. These include:

• Not securing your home
• Leaving your home vacant
• Home swapping
• Existing damage
• Flood damage
• Defective workmanship
• Gradual deterioration
• Renovations
• Tree damage
• Business activity
• Intentional or criminal acts
• Lawful confiscation
• Vermin
• Pet damage
• Acts of war, terrorism, nuclear contamination
• Failing to disclose relevant information to insurer
• Waiting periods

Not securing your home

If you don’t take reasonable steps to prevent loss or damage to your home or contents, including securing your home against break-ins, your claim may be refused.

For example, if you were to leave your door unlocked or a window open, which leads to a burglar gaining access to your property, then your insurer may not cover the costs to replace any stolen or damaged items.

Leaving your home vacant

If you plan on being away from your home for an extended period of time it’s a good idea to check to see if this could impact your policy, or your ability to make a claim.

Some insurers may restrict or exclude cover for loss or damage that occurs after your home has been unoccupied for a certain period. This period typically ranges from 60 to 120 consecutive days, depending on your policy, with 60 days being the most common, based on recent Canstar analysis.

But if you tell your insurer in advance that you will be away, then they may agree to provide unoccupied cover for your home and contents for an extended period, which may incur an increased premium.

Home swapping

Typically, only the people listed on your insurance certificate will be eligible for cover under your home and contents insurance policy. So, if you are renting your home out to other people through a company such as Airbnb, then cover may not apply during this period.

You may be able to get specific insurance for this period through your rental platform, or they may be able to advise of other insurance options.

If you have friends or family staying in your home, their items are also not usually covered by your contents insurance, unless you list them on the policy, which may incur an increase in your premium.

Existing damage

Most insurers will not provide cover for pre-existing damage to your home or contents. So, if you have a leaking roof, a broken television or a stained carpet prior to taking out your policy, be aware that your insurer may not pay your claim to repair or replace them.

Flood damage

Flood damage cover may not always come as a standard inclusion under your home and contents insurance policy.

Some insurers may only offer cover for flooding as an optional extra at an increased premium, and the cover may not extend to every type of flood damage that could occur.

If you live in an area prone to flooding, it could be worth checking your policy carefully to see what cover is available.

Defective workmanship

If your home or any contents carry defects, including faulty design, structural defects or poor workmanship, then they may not be covered.

For some items it may be a good idea to check if they carry a manufacturer’s warranty. This warranty, if still in effect, may give a consumer the option to have their goods repaired or replaced by the supplier or manufacturer, if that item or items are proven defective. This type of warranty is usually limited by time.

Gradual deterioration

The majority of insurers will not cover loss or damage to your home or contents caused by wear and tear, depreciation, or lack of maintenance.

For example, if parts of your roof are deteriorating and have not been repaired and this causes water to drip into your home and cause damage, then the costs linked to this damage may not be covered.

Renovations

Some home and contents insurers may not provide cover for damage or loss connected to any alterations, repairs, extensions or renovations you make on your home. Check your policy to see if you need to add additional insurance to cover building work, or if there are any renovation-related clauses to follow.

You may also need to consider a specialised policy or check your builder’s insurance for cover. Make sure to notify your insurer ahead of time if you plan to renovate.

Tree damage

Many home insurance policies won’t cover damage from trees that are lopped or pruned, whether it’s by you or a hired professional.

It’s worth noting that any damage caused by tree roots, plants and hedges may also be excluded from policies.

‘Business activity

Generally, loss or damage to any part of the home or to your items used specifically for any business, trade or profession will not be covered under your home and contents insurance.

If you are looking for cover of this kind you may want to consider home business insurance.

Intentional or criminal acts

If you, your family members, guests or tenants commit deliberate, malicious or unlawful acts that lead to the loss or damage of your home or personal possessions, then you may not be covered.

If you want to protect yourself financially against certain types of damage caused by your tenants, it may be worth considering landlord insurance.

Lawful confiscation

Your home and contents may not be covered if they are confiscated or repossessed by the police, a government authority or someone with the legal authority to do so.

Vermin

Loss or damage caused by insects, birds, rodents or vermin are typically excluded by most home and contents policies.

Pet damage

Damage caused by your dog, cat or any other pet kept at your home may not be covered under a standard home and contents insurance policy.

There may be some policies available which include pet damage cover, so it could be worth researching your options.

Acts of war, terrorism and nuclear contamination

Most insurers will not cover damage or loss to your home and contents as a result of events such as nuclear contamination, war, rioting, rebellion or terrorism.

Failing to disclose relevant information to insurer

It’s important that you are honest with your insurer when it comes to declaring what is in your home and the condition of your items when purchasing or renewing your policy.

If you fail to thoroughly inform them of your circumstances, then you run the risk of having an insurance claim denied.

Waiting periods

Waiting periods between when you purchase your policy and when you can claim for cover may apply for particular events under your home and contents insurance, such as storm, flood or fire damage.

This exclusion period is often between 48-72 hours, although this may vary depending on your policy and the specific type of event.

When researching your home and contents insurance options, it is important to check for any exclusions which may apply by reading your policy’s Product Disclosure Statement (PDS) or contacting your insurer directly.

Additional cover

We’ve already mentioned additional cover you might want to include in your policy, for example, flood damage, home business insurance, pet damage etc.

Here are a few more you might like to consider if they’re not already included in your policy:

Accidental damage

Many insurance providers don’t cover loss or damages from mishaps and breakage unless you’ve purchased accidental damage cover. Most providers offer this as an additional extra, although some do offer it as standard, so check your policy.

Electrical motors

Appliances damaged by a power surge and burnout can be covered but is generally an optional extra that you can add to your home insurance (if it’s a fixed appliance) or contents insurance cover, depending on the item.

Portable contents

If you want to insure valuables you regularly take with you away from your home (portable contents) for example jewellery, mobile phones and laptops, you’ll most likely need to add optional cover.

Insurers may include unlisted (or unspecified) cover as a standard inclusion on a policy up to a specified limit. But listed (or specified) cover generally won’t be a standard inclusion, but can be added for an additional premium.

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