Can I just insure my most valuable item? Yes! Here’s how, with Butter Insurance

Contents insurance can be a great investment to financially protect your most valuable items. But what if you don’t own a lot? What if you just want to cover your new smartphone, engagement ring, or laptop? Can you do that?

You certainly can – and new provider Butter Insurance hopes to make it that much easier.

Butter Insurance bills itself as a “subscription style” contents insurance policy. Users sign up to receive coverage on eligible items, particularly recent purchases like a new TV or pair of headphones, on a monthly or yearly basis. No longer need cover? Butter says you can cancel anytime for no additional fees. 

Butter Insurance is an insurtech start-up based in Sydney. Founded in 2021 by former lawyers Steph Skevington and Cassie Bell, the product is aimed at digitally-savvy users, particularly young Australians – a generation notorious for being underinsured, or not insured at all. 

“Insurance is the un-sexy corner of financial services that has been ignored for too long,” explained founder Cassie Bell. 

“By partnering with retailers and using open banking integrations, Butter aims to make the process of taking out insurance seamless and simple. You get the flexibility of a single-item policy and the convenience of purchasing through any store at checkout.”

Specific coverage is available for items such as electronics and jewellery that cost between $300 and $5,000 at the time of purchase. Items must be added to your Butter Insurance policy within 90 days of purchase (so apologies if you wanted to cover that older laptop). 

At the time of writing, you can cover the following categories of items with Butter Insurance: 

• Smartphones.
  
• Computers.
  
• Smartwatches.
  
• Headphones.
  
• eReaders.
  
• Tablets.
  
• Portable music equipment, such as amps or microphones.
  
• Cameras.
  
• Gaming equipment, such as PlayStations or Steam Decks.
  

However, Butter also says new coverage categories are coming in 2023. 

You can add Butter Insurance at the checkout when buying through participating retailers, or add your eligible items to your policy through the Butter Insurance web app. If you add Butter at the checkout, you could receive seven days of free coverage before upgrading to the full policy.

Coverage includes basic accidental damage and theft protection within Australia (and outside Australia if you’re travelling on holidays under three months long).

So if you accidentally drop your covered smartphone, or if someone steals it from your handbag and you file a police report, you may be able to claim back the costs through Butter Insurance. Eligible claims may even receive new-for-old replacements. 

Note that accidental damage doesn’t include gradual wear and tear on the item. So make sure you keep everything in good nick! 

Butter Insurance policies also don’t cover accidental loss, so if you leave your insured item somewhere (even on accident!), you’ll miss out. 

Claims can be made online through your Butter account. 

Excesses also apply to some claims, such as a flat fee of $75 when you claim for a mobile phone screen repair. It’s vital to read Butter Insurance’s product disclosure statement (PDS) for the full details on all the terms, conditions, and charges.

Compare contents insurance policies below.