How much home insurance cover do I need

As precious as your home is, you may be like many Australians who undervalue it when it comes to insurance. Particularly if you’ve been in the same place for a while.

Think back to the last time you moved house – boxes, boxes and more boxes. With all the things you can’t bear to part with, there’s always more to pack than you thought – and hence more for your insurance to protect. Then there’s often furniture or equipment upgrades, other purchases and presents you’ve received. By the time you factor in your home itself if you’re an owner, and any recent renovations or extensions, it quickly adds up.

How much should you insure your building for?

In insuring your house, think about what it would cost to rebuild it today using the same materials and the same style of fittings and fixtures. The amount you insure for is known as your building sum insured.

• The cost to rebuild your house depends on things like size, design, features, materials, and ground slope
• It includes any permanent features such as timber floors, verandahs, carports and pools
• But it shouldn’t include the land value.

To help you estimate the replacement value of your home, you can check what's covered and use the Building value calculator.

How much should you insure your contents for?

When determining how much to insure your contents for, add up the cost to replace them today and not what you paid for them. Ask yourself, how much would it cost if I had to buy all new contents today? The amount you insure for is known as your contents sum insured.

• An easy way is to go room by room, and make a list of all the items and their replacement costs
• Your Contents includes carpets, rugs, curtains, internal blinds and shutters, and even the food in your freezer.

To help you estimate the value of your contents, you can check what's covered and use the Contents value calculator.

Keep your sum insured up to date

You can change your sum insured at any time to ensure you remain adequately covered. We recommend you review your cover regularly, to take into account things like:

• Upgrades or renovations
• Changes to the costs of labour and materials to repair or rebuild
• Changes to building codes and regulations
• Increases in the replacement value of your belongings
• New purchases and gifts.

You’ve got a safety net just in case

Your Building and Contents cover includes extra protection, in addition to your sum insured, just in case there are unexpected costs to rebuild, repair or replace your building and contents. For example, construction costs often increase after a widespread storm, flood or bushfire because the demand for labour and building materials is higher.