The Three Types of Home Cover
Home insurance in Australia isn't one product — it's three, and knowing the difference determines whether you're actually covered when something goes wrong.
Building Insurance
Covers the physical structure of your home: walls, roof, floors, permanent fixtures (built-in kitchens, bathrooms), and attached structures like garages, carports, decks and fences. If you own your home and have a mortgage, your lender will almost always require this as a condition of the loan.
Contents Insurance
Covers everything that isn't fixed to the building — furniture, electronics, clothing, appliances, and personal belongings. Renters typically only need contents insurance, since the landlord's building policy covers the structure.
Combined Home & Contents
Bundles both into one policy, one premium and one excess. Most owner-occupiers choose combined cover because it's usually cheaper than buying the two separately, and simplifies claims when a single event (like a fire or storm) damages both the building and its contents.
Which One Do You Actually Need?
- You own and live in your home: combined home & contents
- You rent: contents insurance only — your landlord insures the building
- You own an investment property you rent out: landlord insurance (building) plus optional landlord contents for anything you supply furnished
- You own a unit or apartment: your strata scheme insures the building and common property — you typically only need contents insurance
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.