Accidental damage insurance

What is accidental damage in home insurance?

Accidental damage insurance does what it says on the tin. If your property, or items within it, are damaged accidentally, it'll help cover the cost of repair or replacement.

Sometimes it's included as standard in home insurance policies, other times it's offered as an optional extra.

Top pick for accident prevention: Honey

What we like about Honey:

• It gives you $250 worth of smart sensors when you sign up. They help detect household accidents and prevent you from having to make claims (stopping your premiums from increasing).
• You can avoid big annual premium increases. Lots of insurers offer sign-up discounts but this often results in a significant price hike after the first year. With Honey, it's different – you get up to 8% off your premiums every year if you use the smart sensors. For example, Finder's Head of Editorial recently saved $1,415 by switching to Honey after 11 years with the same insurer.
• Signing up is quick and straightforward. It removes a lot of the work you usually need to do when taking out home insurance by using third-party data to gather information about your property – for example, the materials used to build it, the area it is in and year it was built.

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Why we chose Honey

We like Honey because it's one of the few insurers that invests in you. The insurance tech start-up gives customers $250 worth of smart sensors when they take out a policy. The sensors detect household accidents in the home – like water leaks, fires and theft – and alerts you via its app. You can get up to 8% off your premiums every year if you use them too, not just for the first year – making them a good choice for anyone tired of their insurance premiums going up substantially every year.

What does accidental damage insurance cover?

Accidental damage insurance helps cover the cost of repair or replacement, if something in your home is damaged by a sudden, unintended or unexpected event.

A wide range of events falls under that umbrella, but it typically includes:

Accidental damage insurance for laptops

Laptops are usually covered under your accidental damage policy and depending on the insurer, you might even be covered if the damage happens outside of your home.

Accidental damage to your laptop includes dropping it or spilling liquids on it. Just remember, it won't cover scratches, dings and dents if they don't affect your laptop's performance. You should also check the product disclosure statement (PDS) to see whether or not cracked screens will be covered.

How do I get accidental damage insurance?

Accidental damage insurance will either come included in your home and contents policy or you will be given the choice to add the cover for an additional cost.

• Included: Accidental damage is included as standard in your home insurance policy. The price you have been quoted includes cover for accidental damage.
• Add-on: An additional feature which does not come as standard. If you choose to add accidental damage cover, it will increase the price of your premium.

How much does accidental damage insurance cost?

We requested quotes from four different insurance companies to see how price varies between home insurance policies with accidental damage cover as standard, accidental cover as an optional extra and without any accidental damage insurance at all.

The research found that, for the two companies that offer both options, add-on accidental damage is only an extra $11 a month.

The research also shows that it's possible to get add-on cover at a cheaper price than home insurance without accidental damage, which is why it's so important to compare home insurance policies carefully.

Is accidental damage insurance worth it?

It depends on the contents of your home, but accidental damage insurance can definitely be a worthwhile investment for lots of Australians.

For example, if you pay an extra $11 a month for accidental damage insurance, you'd be covered if your TV fell from the wall and smashed, if your dog knocked over an antique vase or you spilled red wine on your new cream sofa.

Remember, you'll have to pay an excess before you can claim on your accidental damage policy, but when you take into account how expensive many items in the home can be, the cover is definitely worth considering.

Which brands cover accidental damage?

Insurer	Policy
	Budget Direct home insurance will cover the accidental breakage of glass, ceramic and sanitary fixtures. Contents insurance will cover fixed glass breakage in furniture, mirrors and pictures. Further accidental damage cover can be added on to extend your protection.
	Coles offers accidental damage as an optional extra. If your claim is approved, you can get paid the actual cost for replacing the damaged item or up to your approved limit.
	Accidental damage cover is included in comprehensive cover only and will cover damage to your home and contents depending on your policy type.
	Kogan's top cover includes accidental damage to your insured building and/or contents.
	With Real Insurance's Top Home or Top Home and Contents cover, accidental damage is a standard inclusion at no extra charge.
	St. George's Premier Care policy covers accidental loss and damage.
	Accidental breakage of glass, ceramic and sanitary fixtures is covered with the optional extra of further accidental damage cover.
	Accidental loss and damage is already covered under Westpac's Premiere Care policy.
	Youi's contents accidental loss or damage cover and buildings accidental damage cover are optional extras that you can choose to include with your policy.
	Allianz will cover the accidental breakage of glass or ceramic items in its contents insurance, with the option to add on cover for further accidental damage.
	Bupa's accidental damage home insurance policy gives you the option to choose between a home or contents policy or a combined policy of the two.
	Accidental damage can be added as optional cover for an extra premium. This covers the breakage of glass, ceramic or sanitary fixtures, including any damage caused by animals kept at the insured address.
	Accidental damage cover is automatically included with Home Plus and can be added onto NRMA Standard Home Insurance.
	QBE's standard home insurance policy does not give you accidental damage cover, but you can add it on for an additional cost to protect damage to glass. QBE's Home Prestige Insurance is its highest level of cover and will include accidental damage for your home and contents.

General exclusions: Things to watch out for

While accidental damage insurance covers a wide range of possible events, there are some core exceptions that you need to be wary of. Specifics will vary between different insurers but common exclusions are:

Other exclusions will apply so please check your PDS carefully.

Frequently asked questions

• Should I get contents insurance with accidental damage?

  It's up to you, but if you have anything in your home that would be expensive to replace or repair, accidental damage insurance is definitely worth considering. If you have kids or pets, accidental damage insurance might be particularly useful.

• Do I need accidental damage cover on building insurance?

  Accidental damage cover isn't a requirement on building insurance, but you may be able to add it as an additional feature. If you only want to insure the building, but not the contents, some insurers offer accidental damage insurance for buildings.

• Can I get accidental damage insurance for tenants?

  Yes, if you're a landlord and you're worried about the damage tenants might do, you can usually add accidental or malicious damage cover to your landlord insurance policy.

  If you're a tenant, you can take out renters or tenants insurance which will cover you for accidental damage to your home's fixtures and fittings, as well as your belongings.

• If I'm a renter, can I get accidental damage cover for my aquarium?

  Most insurers will let you add on accidental damage to your renter's insurance which can cover your aquarium. This would mean you could be covered for things like an accidental break in the glass to your tank.

  Further to that, it could cover further damages to your belongings from the escaped water.

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Written by

Nicola Middlemiss

Journalist

Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards. See full bio

Nicola's expertise

Nicola has written 245 Finder guides across topics including:

• Personal finance
• Personal insurance, including car, health, home, life, pet and travel insurance
• Commercial business insurance