Having building and contents insurance on your residential home is essential in an event of a storm, fire or flood. So how do they work?

What is building insurance?

Building insurance can cover your residential building for loss or damage caused by insured events, such as fire, flood, storm, theft and power surge burnout. As well as your house, building insurance could help protect a whole range of other permanent structures, from sheds and granny flats, to in-ground pools and fixed water features. 

What is contents insurance?

Contents insurance can protect your belongings that are not fixed or fitted to the residential building, from furniture, to clothes and electronics. It could also cover the cost of repairing or replacing your content items on a new-for-old basis for loss or damage caused by fire, flood, theft and electric motor burnout.

Working together

Building insurance and contents insurance are designed to work together, to provide comprehensive protection for your home and belongings. Building and contents insurance (often known as Home and Contents insurance) could cover both your building and contents from loss or damage caused by fire, flood, theft and burnout of electric motors and power surges.

However, if you’re renting, you won’t need building insurance, as you don’t own the home. You may still take out contents insurance to cover your belongings, as they’re unlikely to be covered under your landlord’s insurance policy.

You’ve got options

You could also add optional covers for an additional premium to cover accidental damage and portable contents, like laptops, jewellery and sporting equipment you take with you when you are away from home.

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.

Home and Car Insurance is provided by CommInsure, a registered business name of Commonwealth Insurance Limited ABN 96 067 524 216 AFSL 235030 (CIL). CIL is a wholly owned non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (The Bank). The Bank does not guarantee the obligations or performance of CIL or the products it offers. Where we refer to 'we', 'us' and 'our', we mean CIL. This information has been prepared without considering your objectives, financial situation or needs. Before acting on this you should consider the appropriateness to your circumstances.

A Product Disclosure Statement is available at all Commonwealth Bank branches, by downloading them from commbank.com.au or by calling 13 2423 and should be considered before making any decisions about these products. You should also read the Home Insurance Key Fact Sheet, Financial Services Guide and Privacy Policy which are also available by calling 13 2423.