Mozo Home and Contents Insurance Jargon Buster

There's no doubt about it, home and contents insurance policy writers love their mumbo jumbo. If you're struggling to get your head around some of the home insurance lingo (and really who wouldn't) our jargon buster is here to help.

Accidental Damage (vs. Defined Events)

In a defined events policy the insurance provider will list the specific events they will provide cover for usually including Fire, Storm, Burglary, Impact, Glass Breakage, Earthquake, Malicious Damage, and Lightning. Accidental Damage is a higher level of cover and typically more expensive as it takes into account a much wider range of incidents (like spilling red wine on the carpet or a plasma TV falling off the wall.)

Building Replacement Value 

This is the amount it would cost you to completely rebuild your house at current prices.

Duty of Disclosure 

You have a duty to tell your provider everything you know that is relevant to the insurance company decision to insure you. The information you supply will affect the amount of your premium, and special conditions and whether your insurance provider will insure you. Failing to tell your provider something relevant could result in a claim being reduced or refused.

Excess 

This is the amount you have to pay yourself towards each incident if you make a claim. Usually your insurance provider will deduct the excess from the amount of cover they would pay you under your policy and then pay you the remainder.

Flood Cover 

Defined as damage caused to home and contents caused by rain which results in pooling, overflowing or spreading of rainwater. This is quite separate from damage caused by the sea or faulty plumbing. It's really worth checking the details of this with your insurance company.

Fusion 

This is the burning out of an electric motor or its wiring caused by the electric current in it. Items that may be subject to a fusion claim include washing machines, refrigerators, clothes dryers, freezers and pool motors.

New for Old 

If your home or contents are damaged or stolen, a new for old policy means your insurance provider will replace them with new items or repair them with new materials available at the time of replacement from Australian suppliers.

Optional Cover 

This is extra cover that goes above and beyond a standard policy. You can ask your insurance provider to add optional covers to your policy for example, to cover jewellery or an heirloom spoon-collection.

Premium 

A premium is basically the amount you pay your insurance company for insurance.

Product Disclosure Statement (PDS) 

A PDS is the name of the document that contains all the important terms and conditions relating to your insurance. It tells you what cover is provided and lists costs, fees and charges. It's vital that you read this document cover to cover before you sign up with an insurance company.

Sum Insured 

This is the largest amount you could claim from your insurance company under the rules of your policy.

Now that you're armed with a better understanding of your home insurance fine print, head over to check out some of today's home insurance offers.

Home Insurance Comparison Table - rates updated daily

Search promoted home insurance below. Advertiser disclosure. Important information on terms, conditions and sub-limits.
  • Home & Contents Insurance

    Get award-winning Home and Contents Insurance at a price you can afford from Budget Direct. Save a huge 30% ^ on your first year’s premium when you purchase a new combined Home and Contents Insurance policy online.

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
      Optional Extra
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 25% Of Building Sum Insured
    New for old
    replacment
    Replacement icon
    Yes
    Go to site
    Details
  • Premier Care Residential

    Save up to 25% when you purchase cover online. Westpac Premier Care Home & Contents Insurance covers your home and belongings in case of storms, floods, fire, theft and more. Mozo Experts Choice Winner in 2020.

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    No
    Underinsurance protection
    Underinsurance protection icon
    YesUp To 30% Of Building Sum Insured
    New for old
    replacment
    Replacement icon
    Yes
    Go to site
    Details
  • Premier Care Residential

    Save up to 25% when you purchase cover online. St. George Premier Care Home & Contents Insurance covers your home and belongings in case of storms, floods, fire, theft and more. Mozo Experts Choice Winner in 2020.

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    No
    Underinsurance protection
    Underinsurance protection icon
    YesUp To 30% Of Sum Insured
    New for old
    replacment
    Replacement icon
    Yes
    Go to site
    Details
  • Home & Contents Insurance

    Making sure your home insurance is about where you’re at right now could save you lots. Start a quote with Youi today and see what you could save.

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    No
    New for old
    replacment
    Replacement icon
    Yes
    Go to site
    Details
  • Home & Contents Insurance

    Australia Post’s combined home building and contents insurance, both your home and belongings will be covered in case of fire, theft, extreme weather (including flooding) and natural disasters.

    Main events covered
    • fire
      Fire
    • theft
      Theft
    • storm
      Storm
    • flood
      Flood
    Monthly payments
    cost extra
    Calendar icon
    Yes
    Underinsurance protection
    Underinsurance protection icon
    Optional ExtraUp To 30% Of Building Sum Insured
    New for old
    replacment
    Replacement icon
    Yes
    Go to site
    Details

*Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement on the provider's website for further information before making any decisions about an insurance product.

Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

^See information about the Mozo Experts Choice Home Insurance Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.