Home & Contents Insurance

No. The sale price includes the land, which does not need rebuilding, and reflects the local property market rather than building costs. Your home insurance should be based on the cost to rebuild the house to the same standard, which can be higher or lower than its market value. Older homes, heritage features, sloping blocks and difficult site access often push rebuild costs well above what owners expect. A rebuild estimate from a builder or quantity surveyor is the safest guide.

Sum insured is a fixed maximum the insurer will pay to rebuild your home. A safety net adds an extra percentage on top, commonly between 10 and 30 per cent, but usually only if the home is completely destroyed. Total replacement cover pays the full rebuild cost regardless of the sum insured, but it is now offered by very few insurers. Knowing which one you have matters most after a bushfire or major storm, when building costs can jump quickly.

Usually because the two policies are not covering the same things. Online quotes often default to listed events rather than accidental damage, a lower sum insured suggested by a calculator, a higher excess, and low limits on jewellery, art and other valuables. Some also exclude flood or motor burnout unless you add them. The quote looks cheaper because less is covered. We can go through the two policies side by side so you can see what you would give up.

Often not. Most contents policies set a per-item limit on unspecified jewellery, watches and art, often only a few thousand dollars, and a total limit for all valuables combined. An engagement ring or inherited piece worth more than that needs to be listed separately. Cover away from home is usually a separate option too. If you have valuables worth more than the standard limits, a recent valuation and a specified items list are the only way to be sure.