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 at home has you wondering if your home insurance might come to the party to help with repairs or replacements, and if it does, whether both your home and its contents might be covered?
In this article, we’ll explore some of the common questions about accidental damage insurance to help you make informed decisions about the type of cover that might work for you.
What is accidental damage insurance?
Accidental damage insurance provides cover for damage caused by unintentional, one-off incidents.1
It’s often an optional cover, which means it is not a standard inclusion but can be added to a home insurance policy.2
If you have Youi Contents insurance, 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 for Home and Small Business.
So, what counts as accidental damage?
Think of it as damage caused by a mishap.2 In addition to that damaged ceiling or smashed TV screen, it might be accidentally spilling red wine on your new carpet or breaking a mirror.4
“At Youi, accidental damage caused by pets to your home or contents is also covered if you’ve added Contents Accidental Loss or Damage and Buildings Accidental Damage to your policy,” says Hartley.
Some insurers classify broken glass as a type of unintentional damage that may only be covered by optional accidental damage home insurance.4
“However, at Youi, if glass fitted at your premises gets broken due to an accident, the cost of replacing it – up to 10% of the buildings sum insured after excess or up to 10% of the contents sum insured after excess – is covered by our standard Contents and Buildings insurance policies,” says Hartley.
“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.
“It’s important to read the Product Disclosure Statement 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.”
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 against accidental loss or damage if you’re the landlord of the property, including if you’re letting it as a holiday rental.
“Thinking about your contents in particular, as well as considering the accidental damage that might happen at home, it may also be worth thinking about the accidental loss or damage that can occur to items you usually carry with you when you leave home,” says 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 are also covered by the Contents Accidental Loss or Damage cover that you can add to your Contents insurance.3
“And this cover even extends worldwide,” says Hartley.
Plus, while 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,5 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 are 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.”
Can you add accidental damage cover temporarily?
Hartley says if you want to, you can add Youi Contents Accidental Loss or Damage to your Contents insurance policy for a short period of time, for example, when you’re moving house.
“If 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.
“You could also consider adding Contents Accidental Loss or Damage to your policy, just for the duration of the move,” says Hartley.
“This would extend your coverage to include accidental breakage at and away from your house. Just remember to get in touch with us once you’re at your new address, so we can remove the optional cover from your policy,” he says.
“Similarly, if you have a Youi Contents insurance policy and you’re heading overseas, you could consider adding Contents Accidental Loss or Damage to the policy for the period that you’ll be away to cover the valuable items you’ll be taking with you.”
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.6 Adding accidental damage cover to an existing policy will likely increase the cost, or premium, that you pay.4
“Choosing a higher excess for your policy may lower your premiums,” says Hartley. “But it also means you’ll pay more excess if you need to make a claim, or, for events 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.”
Whether or not you already have Buildings or Contents insurance, consider starting a quote with Youi 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
2 Source: Moneysmart – Contents insurance
3 Exclusions, limits and additional fees may apply. See the Home & Contents PDS for full details.
4 Source: Canstar – What is Contents Insurance and What Does it Cover?, March 2024
5 Source: Canstar – Engagement Ring Insurance, March 2024
6 Source: CHOICE – How to find the right home and contents insurance policy, October 2023
