Whether it’s a damaged ceiling courtesy of a DIY mission up in the roof or a smashed TV screen courtesy of a kids’ ball game gone awry, we’ve all had our fair share of accidents at home.
Perhaps a recent mishap has left you wondering if your home insurance might come to the party to help with repairs or replacements, and if it does, whether both your property and its contents might be covered.
In this article, we’ll explore some of the most common questions about accidental damage insurance to help you make informed decisions about the type of cover that might work for you, whether you’re a property owner or renter. We’ll also reveal what the average accidental damage insurance claim amounts to at Youi.
But first…
What is accidental damage insurance?
Accidental damage insurance is insurance cover for damage caused by one-off, unintentional incidents.1
It’s often an optional cover, which means it isn’t a standard inclusion but can be added to a home insurance policy.2
If you have Youi Contents insurance and live in the property either as an owner occupier or as a tenant, you have the option to add Contents Accidental Loss or Damage cover. And if you have Youi Buildings insurance, you can choose to add Buildings Accidental Damage cover.3
“If you have both types of optional cover, it means that accidental loss or damage to your home’s structure and contents is included as an insured event, just like theft, fire, storm and flood are,” says Mervyn Hartley, Youi’s Head of Product – Home and Small Business Insurance.3
So, what counts as accidental damage?
Think of it as damage caused by mishaps, big or small, which we’ve all probably encountered at some point or another.2
For example, let’s say you find your child drawing their latest masterpiece in permanent marker all over your couch – that’s something that could fall under accidental contents damage. On the other hand, some accidental damage home insurance examples that could come under a buildings insurance claim might include causing a big dent in your walls or flooring while moving furniture, or cracking a roof tile while cleaning your gutters.4
Some insurers cover certain types of broken glass, such as mirrors and cooktops, under a standard home insurance policy. Accidental damage insurance, on the other hand, may cover a wider range of glass items.5
“At Youi, our standard Buildings and Contents insurance policies can cover the cost of replacing accidentally broken fixed glass at your home up to the policy limits – that is, up to 10% of the buildings sum insured, or up to 10% of the contents sum insured, after excess,” says Hartley.6
“Likewise, damage to your insured property caused by impact from an accident involving a trailer or a car, even if you’re the one driving, is also covered by Youi Buildings insurance.6
“It’s important to read the Product Disclosure Statement (PDS) and consider having a chat with your insurer to understand what a policy does and doesn’t cover, including the types of accidental damage it covers.”
How common are accidental damage claims at Youi?
Accidental damage happens more often than you might think. In fact, Youi data from January 2026 to June 2026 shows that accidental damage claims make up about 11% of all home insurance claims with the average payout sitting upwards of $5,000.
“While storm damage remains the most common type of home insurance claim overall, accounting for nearly a third of all claims with Youi, mishaps around the home are a close reminder that everyday accidents can carry a real cost,” says Hartley.
Does accidental damage cover laptops, TVs and other electronics?
If you’ve knocked your laptop off the table or sent a game controller flying into your TV, insurance for accidental damage could help.4
Electronics like these may be covered under accidental damage insurance, depending on your specific policy and on the cause of the damage.4
However, some accidental insurance policies exclude mobile phones, according to consumer advocate CHOICE.5 This doesn’t apply at Youi, though – mobile phones are covered under Contents Accidental Loss or Damage.3 We’ll go into that in more detail further on.
Some policies may also apply sub-limits, such as capping cover at $1,000 for items not specifically listed on the policy.4 Once again, your PDS is there to help you understand exactly what’s covered.4
What’s not covered by accidental damage insurance?
As we’ve seen, accidental damage policies can vary quite a lot. But generally speaking, damage must be due to a single, identifiable cause, and not caused slowly over time or through wear and tear.5
For example, paint peeling off your walls probably wouldn’t be considered accidental damage, whereas accidentally knocking a hole through your ceiling while inspecting your roof cavity for leaks might be.4
Some common accidental damage policy exclusions can include:
- Business items4
- Deliberate or malicious damage4
- Damage caused by tenants (typically covered by landlord insurance)4
- Loss caused by computer malfunctions or viruses5
- Damage caused by faulty workmanship or renovations, such as building an extension4
- Damage to retaining walls5
- Anything else listed in the policy’s general exclusions.5
“Again, it’s always a good idea to check the PDS carefully so you understand when your accidental damage cover may or may not apply,” says Hartley.
Who might benefit from accidental damage insurance?
Do you have young kids or entertain frequently? You probably already know that a bustling home can be incident-prone, so you might want to think about adjusting your home insurance with accidental damage cover.5
You might also consider accidental damage insurance if you have pets. While this type of cover typically doesn’t include damage caused by chewing or scratching, it could come in handy for pet-related accidents, such as if your four-legged pal knocks over and breaks a precious porcelain heirloom.4
Finally, accidental damage insurance for furniture or furnishings could be useful if you have items in your home that would be costly to repair or replace,5 such as an expensive carpet or rugs or bespoke tiles.
Do I need accidental damage insurance?
“Whether or not you decide to add Youi’s Contents Accidental Loss or Damage or Buildings Accidental Damage to your insurance policy comes down to your individual circumstances and requirements,” says Hartley.
He points out that neither type of optional cover will cover your contents or buildings for accidental loss or damage if you’re the landlord of the property, including if you’re letting it as a holiday rental. Instead, if you have a Building insurance for landlords policy with Youi, cover for loss or damage to Landlord’s Furnishings as a result of an insured event is included as standard. And provided the property isn’t being used as a short-term rental, you can also add the optional Lessee/Tenant Default and Damage cover, which covers some types of damage caused by tenants.3
“As well as thinking about the accidental damage that might happen at home, it may also be worth considering the accidental loss or damage that can occur to items you regularly carry with you when you leave home,” adds Hartley.
Some insurers offer separate “portable contents cover” as another optional cover to insure items you have on you or leave home with, such as your phone or your jewellery.4
But, at Youi, portable items like these are also covered by the Contents Accidental Loss or Damage cover that you can add to your Contents insurance.3
“And this cover extends worldwide,” says Hartley.3
Plus, dedicated portable contents insurance may place a limit on how much you may be able to claim for an item if you lose or damage it while you’re away from home.7 In contrast, Youi’s Contents Accidental Loss or Damage may cover the replacement value of your portable belongings including specified items – for example, your engagement ring – that may be worth more than $15,000.3
“If you need to make an insurance claim for an item, you may be asked to provide proof that you own it and proof of its value,” says Hartley. “This can include written valuations for certain items, but it’s also useful to take photos of the contents you’re insuring to support a future claim.”
Do I need accidental damage cover if I’m renting?
If you’re renting, accidental damage contents insurance may be worth considering because your landlord’s insurance typically won’t cover your personal belongings if you accidentally damage them.8
It’s also worth checking your renters contents insurance policy to see if it provides cover for any accidental damage you might cause to your landlord’s property.
“At Youi, standard contents insurance includes an extra cover called Tenant’s Liability, which covers loss or damage to your landlord’s fitted carpets, fixtures and fittings,” says Hartley.6
“This cover appliesif you’re responsible for covering those items under the terms of your rental agreement and they are damaged in an insured event. An example of this might be if one of your appliances burns out and causes a fire that scorches the benchtops in your kitchen.”6
Bear in mind, however, that not all insurers’ contents policies for renters include this legal liability cover, so you might want to check your PDS to see if you’re covered.9
Do I need accidental damage insurance for both my contents and my building?
“This will depend on your unique living situation and needs,” Hartley explains.
“If you only want accidental insurance to cover your building’s structure in case, for example, you chop down a tree and it falls on your fence or your house, you may prefer to add just buildings accidental damage cover to your policy. However, if you also want to cover your contents items for those unexpected mishaps, you might choose to add accidental damage cover for both building and contents.”
On the other hand, you may only want accidental damage cover for your belongings. For example, if you own an apartment and have body corporate building insurance, you might simply choose to add contents accidental loss or damage to your apartment contents insurance.9
How much does accidental damage insurance cost?
The cost of home and contents insurance depends on a number of factors including how much you insure your contents or buildings for.10 And, if you add accidental damage cover as an optional cover to an existing policy, it will likely bump up the cost of the premium that you pay.4
“Conversely, choosing a higher excess for your policy may lower your premiums,” says Hartley. “But it also means you’ll pay that higher excess if you need to make a claim. Or, for slip-ups where the accidental loss or damage isn’t too great, you may end up paying for the repairs or replacement out of your own pocket rather than making a claim, for example if the cost of repairs is lower than your excess amount.”
Can you add accidental damage cover temporarily?
Hartley says you can request to add Youi Contents Accidental Loss or Damage cover to your Contents insurance policy or remove it at any time.3
“If you’re moving house and you have a Youi Contents policy at your current address, you already have some extra cover benefits, including Contents in Transit, which provides protection for your contents if the professional removalist vehicle they’re being transported in is involved in a motor vehicle accident,” he says.11
How can I add accidental damage cover to my policy?
Adding accidental damage to your home insurance policy with Youi is simple. Here’s how it works.
- Contact us – Give us a call on 13 YOUI (13 9684).
- Request optional cover – Tell us whether you want Contents Accidental Loss or Damage, Buildings Accidental Damage, or both.
- Receive a quote – We’ll let you know how much your new premium will be.
- Accept – Agree to your new quote.
- Confirm – We’ll send you an email to confirm your new cover.
How do I make an insurance claim for accidental damage at home?
Making a home insurance claim with Youi is simple, thanks to our transparent 5-step claims process. Here’s what that process involves:
- Lodge – Make a claim by phone or online any time.
- Assess – We’ll take a look at your claim and arrange an inspection if needed.
- Action – If the claim is accepted, we’ll arrange a repair, replacement or cash settlement.
- Track – We’ll keep you posted with regular updates, and you can keep an eye on your claim progress via the online claims tracker.
- Resolve – Once everything is settled, we’ll finalise your insurance claim.
Whether or not you already have Buildings or Contents insurance with Youi, consider contacting us to explore optional covers or starting a quote to find out whether Contents Accidental Loss or Damage cover or Buildings Accidental Damage cover might suit your circumstances.
1 Source: Insurance Council of Australia – ABC’s of General Insurance, n.d.
2 Source: Moneysmart – Contents insurance, July 2026
3 Limitations and exclusions apply and there are waiting periods or additional fees for certain types of cover. Full details are in the Home PDS and TMD, which we recommend you consider before making any decisions regarding our products.
4 Source: Canstar – Accidental Damage Home Insurance, August 2026
5 Source: CHOICE – What is accidental damage insurance and how much does it cost?, May 2025
6 Exclusions, limits and additional fees may apply. For full details, see the PDS.
7 Source: Canstar – Jewellery and Engagement Ring Insurance, March 2026
8 Source: Moneysmart – Choosing home insurance, July 2026
9 Source: CHOICE – How to get the best contents insurance as a renter or strata property owner, May 2026
10 Source: CHOICE – How to find the right home and contents insurance policy, December 2025
11 The most we will pay for each claim is 20% of the contents sum insured after excess. For full details, see the PDS.
