Does home insurance cover that? 9 things you may not know about your policy

Key Points

• Home & contents insurance doesn't cover loss or damage arising from poor maintenance.
• The product disclosure statement (PDS) has the terms and conditions of your coverage.
• Comparing home insurance quotes can lead you to better value.

Home insurance can be tricky. What happens if the neighbour's kid breaks your windows with a ball? What if your pipes burst? Knowing the answer to these questions could be the difference between a successful claim and having to dip into your own emergency savings.

So whether you're checking your coverage or need to file a claim, here are some good questions to ask about your home insurance policy.

1. Does home insurance cover fences?

Generally speaking, damaged fences are covered by building insurance as long as they’re well maintained. There may also be limits to the size of the fence – for example, you might only be covered for fences under 500 metres long.

What if it’s a shared fence? The rule of thumb seems to be that if a well-maintained shared fence is damaged, your insurance will cover up to 50% of the cost of repairs (i.e. your share of the fence).

2. Does home insurance cover plumbing?

Home insurance is designed to cover the costs of unexpected damage. That means that gradual damage to your plumbing, such as rusting pipes or faulty fixtures usually isn’t covered, because it could have been avoided with regular maintenance. Surprisingly, one of the most common sources of water damage in the home are degraded washing machine hoses. It literally pays to keep everything new and functional.

However, if the plumbing damage was caused by an insurable event like storm damage, then your coverage may kick-in. The damage just has to be new and not caused by negligence.

3. Does home insurance cover public liability?

Public liability covers you for injury to another person or damage to their property in cases where you're deemed at fault. For home insurance, this could cover incidents like guests tripping and hurting themselves on the stairs. 

Most home insurance policies cover public liability to some extent at least, usually with limits up to $20 million. Public liability is especially a concern for landlord insurance, since tenants hurting themselves on your property can make for a tricky legal situation.

4. Does home insurance cover a leaking roof?

Similar to plumbing, your leaky roof won’t be covered by your home insurance if it’s happened because you didn’t do maintenance on your home.

On the other hand, if your roof is damaged in a storm, then you should be covered for repairs to the roof, plus internal damage caused by water leaking through.

5. Does home insurance cover mould?

The last thing you want to find in your home is mould. The rising damp is a menace, especially in the hot and humid coastal areas of Australia. But will your home insurance cover the cost of getting rid of it?

Unfortunately, in the vast majority of cases, the answer is no. Because mould is typically a gradual process and often caused by other factors that are fixed in routine maintenance – like leaking showers or blocked ventilation – it usually doesn’t come under your insurance. However, if the mould arises after an insurable event, like flooding, you may be able to claim for its removal.

6. Does home insurance cover mobile phones?

Contents insurance covers your personal belongings while they’re in your home, though some insurance policies will also cover things like jewellery or sporting equipment outside your home.

However, mobile phones usually don’t come under this protection. The good news is you can take out extra insurance to cover big ticket items that leave home with you, like a smartphone.

7. Does home insurance cover tree removal?

Your insurance will cover damage from a tree falling on your property during a storm – provided the tree was not rotten – and will usually pay to cut down any remaining part of the tree and take it away.

But if you’re voluntarily removing a tree, your insurance won’t pay for this. And if you’re lopping down a tree on your property and it damages your home, you probably won’t be able to make a claim on your insurance for that damage either. Insurance is all about managing risk, and if you decided to DIY rather than hire a professional, your insurance provider won't be too keen to hear it!

8. Does home insurance cover foundation problems?

Generally speaking, the foundations of your home are covered under insurance if they’re damaged by an insured event, like a flood, fire, or storm. However, the natural shifting/settling of foundations or tree root damage are nearly always excluded because they're gradual problems, not unexpected ones. 

9. Does home insurance cover termite damage?

Unfortunately, if your home has been damaged by termites, mice, insects or any other vermin, the cost to repair and get rid of these pests usually isn’t covered under your home insurance. Again, this falls under the umbrella of routine maintenance. Your home and contents insurance policy is designed to protect you from unexpected damage, so the worst needs to be unexpected to receive coverage. 

If you're only just getting into the home ownership game, you might need a hand comparing and choosing a home insurance policy. While no one policy will suit the needs of everyone, here are a few things that could get you on the right track. 

• Figure out what kind of insurance you need

If you sit in the owner-occupier camp, you might want a different kind of home insurance policy than if you're a landlord renting out the property. You may also want to bundle contents insurance into the mix. Start by confirming these details, then run your property through the home insurance checklist so you've considered all angles.

• Calculate the level of cover you want

This involves getting an accurate valuation of your home. Underinsurance can be a big problem, so make sure you're insuring your home so that it can be fully repaired or rebuilt without leaving you out of pocket. While the price tag on a cheap home insurance policy may look compelling, make sure it gives you the coverage you want!

• Compare policies

Mozo's home insurance comparison table details a bundle of policy options so you can compare their key features side-by-side. You can start collecting quotes once you've narrowed your search down to a few top contenders. 

• Start an application

Found the perfect home insurance fit for your circumstances and budget? It's time to get applying. You can normally do this online, over the phone or in person at an insurance branch.

Still not sure what's the best home insurance option for you? Take a look at the winners of our Mozo Experts Choice Awards for Home Insurance for a little more insight into what makes for a top home insurance provider, or check out our roundup of some of the best home insurance policies.