Compare Home Insurance – Monzi’s Guide

Compare home insurance policies to find yourself the best deal. Moreover, protect your home as well as what’s inside it with home and contents insurance. Not even sure where to start? Don’t stress – Monzi’s broken it all down into plain English.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is home insurance?

Home insurance protects you financially if something goes wrong in your home. Moreover, insurance covers the cost of repairing or replacing your home if something goes awry.

Specifically, home insurance covers any damages to the building itself, including things like plumbing or electrics. Contents insurance, on the other hand, covers the personal belongings inside the home, like jewellery.

Often, these two are bundled together as home and contents insurance.

Where can I get home insurance?

A number of different companies offer insurance for your home and contents. Moreover, a quick search online will bring up a huge variety of different options.

Examples of companies offering insurance for your home in Australia include:

  • Youi
  • iSelect
  • Allianz
  • Woolworths
  • Budget Direct
  • Coles
  • Aami
  • NRMA.

Obviously, there is a wide range of policies available for different purposes. In short, it is important you do your own research to find an insurer that suits you. If you aren’t sure where to begin, we’ll explain everything.

What are the different types of home insurance?

Finding the right insurance policy may feel confusing, especially if you aren’t sure of some of the jargon flying around. Don’t stress though – it all makes sense when broken down.

Here are the major types of home insurance you will come across:

Home and contents insurance

As the name suggests, this type of insurance covers any damages to both the building itself, as well as any personal possessions inside your home.

In short, if you want to cover your actual house, as well as any valuables inside, this is the policy for you.

Put simply, you are covered for any damages from natural events, like storms or fire. In addition, if any furniture, electronics, jewellery or other valuables are damaged or stolen, your insurance can cover your losses.

Contents insurance

Contents insurance, as opposed to home and contents, only covers your possessions inside the home. Specifically, this includes things like:

  • jewellery
  • electronics
  • carpets
  • curtains
  • furniture
  • appliances
  • other valuables.

Finally, if you rent or own an apartment, this may be an option worth considering.

Building insurance – compare home insurance

Put simply, this covers any damages to the property itself. Moreover, it also covers additional structures on your property, like your garage, fence or shed.

In addition, this insurance protects you against most natural disasters, including fires, storm and hail damage, flooding and other events.

Landlord insurance

This type of cover is designed especially for landlords. More specifically, this policy covers you against things like theft, damage or vandalism, loss of rent as well as the typical natural events you encounter in Australia.

Compare home insurance – what does it cover?

What your policy covers will depend on the insurer as well the level of cover you select. Moreover, your policy may be able to protect against the following:

  • Fire. Protection against any goods or property damaged in the event of a fire.
  • Storm. Protects against storm damage, including violent winds, hail, snow, rain, thunderstorms or cyclones.
  • Lightning. Your property may be damaged by a lightning strike or by a power surge.
  • Flooding. Any loss or damages caused by water. Specifically, this could be the result of flash flooding or a body of water breaking its banks.
  • Earthquakes and tsunamis. While not the most common natural events in Australia, this cover may be worth considering.
  • Leaks. If water or oil leaks from gutters or pipes, your property may experience severe damage.
  • Theft. Pretty self-explanatory; you’re covered for any items stolen or damaged during a burglary.
  • Vandalism. Any malicious acts that cause damage to your house, like vandalism.
  • Civil commotion. Protection against any financial losses incurred during a riot, civil commotion, industrial action or political disturbances.
  • Glass breakage. If any glass accidentally breaks in your house, you’re covered. Includes things like skylights, mirrors, sinks etc.
  • Impact damage. Damage from falling objects, like trees, power lines, vehicles and potentially even meteorites!

What is not covered?

Insurers provide you with a Product Disclosure Statement (PDS) when they recommend or offer a product. Moreover, it is very important that you check the PDS to confirm what exclusions apply to your policy. In other words, which situations will the insurer be unable to fulfil your claim.

Common exclusions include:

  • If your home is unoccupied for a certain number of days; 60 for example.
  • Failing to properly lock and secure your property.
  • Failing to keep your property at a reasonable standard.
  • Certain pre-existing damages to the building or any of its contents.
  • Flood damage may not be automatically included in your cover.
  • Insurance may not cover any period of time spent renovating or improving your home.
  • Insurers may not cover your claim if they learn your house is being used for illegal activities.
  • Any damage deliberately caused by you, a family member or someone acting in your consent.
  • Wear and tear, general rust or deterioration.
  • Termite damage or any losses caused by the presence of asbestos.

Therefore, make sure you read through your PDS carefully before approving it.

Is insuring my home worth it?

Well, we think so. However, it’s not us we’re trying to convince. Let us, therefore, put it another way.

How do you think you would cope financially if your home was completely destroyed? Moreover, outside of the sentimental loss, would you have the money on-hand to start again? For example, even something as small as a leak in the roof can send you back many thousands of dollars.

With the right level of insurance, however, you can sleep a little easier knowing you’re financially covered. Obviously, while there are sentimental pieces and memories you will never get back, insurance at least gives you peace of mind that you have some level of financial support.

Finally, many home loan lenders will require you to take out insurance before they are able to approve your application.

Compare home insurance couple cooking inside orange room

Finding the right cover – compare home insurance

It is essential you understand what your policy covers. Put simply, this will ensure you select an insurer that best suits your needs. Therefore, to give you a clearer idea, here are a few things worth considering when looking for insurance:

Rebuilding your house

If your house is destroyed in a disaster, you may not be completely covered for the total cost, depending on your policy. This is, in short, because the cost of your property is calculated in one of two ways:

  • Sum-insured cover. This is simply an estimate of how much it might cost to rebuild your home if it was completely razed. However, you may be underinsured with sum-insured cover. To avoid this, certain insurers may offer a safety net of an additional 30% added to your sum-insured amount.
  • Total replacement cover. What it would cost or repair to rebuild your home to the same standard. In short, Australians are far less likely to be left underinsured with total replacement cover. Despite this, not many insurers will offer this cover and if they do, it will likely be more expensive.

Finally, use an online calculator to calculate an accurate sum-insured amount. Specifically, look for calculators that use elemental estimating. These calculators ask a lot of specific questions about your house which will provide a more accurate amount.

Confirm the exclusions

As mentioned earlier, the PDS contains a list of things that may not be covered by the policy. Confirm what these uninsured events are before committing to an insurer.

After all, if you live in remote Western Queensland, fire and flood damage is probably more of a concern than graffiti or vandalism.

At the end of the day, only you know what is important to you or not. So weigh up what you value against what you don’t need and go from there.

Stay on top of excess

Excess is the amount you pay out of pocket when you make a claim. This excess amount is detailed in the insurance policy.

Premium, on the other hand, is what you regularly pay the insurer for cover. In short, your premium amount reflects the likelihood of you making a claim.

The majority of home and contents insurance providers will allow you to adjust your excess. Furthermore, you may be able to choose between having a lower excess with a higher premium, or vice versa.

Compare home insurance – policy features

In order to find the best policy for your situation, get quotes from as many insurers as possible. You will come across the same terms for every policy, so it pays to understand what they are.

These are the policy features you should consider when comparing home insurance:

  • Premium. What you the insurer in exchange for cover.
  • Excess. The amount you pay out of pocket when you make a claim. Depending on the provider, you may be able to reduce your premium by increasing your excess.
  • Exclusions. Includes uninsured items and events as well as caps, limits or other potential limits.
  • Legal Liability. Cover for anyone injured and your property if they hurt themselves at your property.
  • Extended cover. Adds extra amount so you’re not underinsured if your house is completely destroyed.
  • Cover limit. Simply defined as the maximum amount you claim for on certain items.

Head to MoneySmart’s article on selecting an insurance policy for more information.

How can I save money on my insurance for home and contents?

There are a number of ways you could potentially save a few dollars on your policy. After all, every dollar counts, right?

Here are a few of our favourite tips for putting yourself in the best position to save money.

  • Don’t pay for what you don’t need. There is cover for all sorts of unexpected events; however, you may not need all of them. For example, if you do not live on a flood plain, what are the odds you really need flood cover?
  • Secure your house. If insurers know your home is protected by a security system, they may predict you making less claims in the future. As such, you may be offered a lower premium.
  • Know what you need. Confirm what kind of cover you need before comparing home insurance options. Policies may seem quite similar in structure but can often vary in what premiums are charged. In short, it’s easier to compare options if you know what you’re after.
  • Shop around. The golden rule to finding a bargain, no matter what it is. Shop around online to find a great deal. Remember, deals and offers change, so it pays to keep on top of what’s happening.

How do I insure my property?

While each Aussie’s needs and objectives are different, insuring your home generally follows the same three step process. Here is how it all works:

  1. Calculate what your home and contents are worth. You submit a dollar value to the insurer on how much you think your home is worth. Moreover, the total cost of your policy will be based on this figure. It is essential you calculate this number carefully. Otherwise you run the risk of being underinsured or paying too much for your premium.
  2. Choose the kind of cover you need. Different types of cover fill different roles. For example, if you only want your building insured, opting for home and contents insurance may not be your best option.
  3. Compare your options. Jump online and compare the different home insurer options. Moreover, be sure to compare home insurance based on the price as well as the policy features.

Compare home insurance – other extras worth considering

Life in Australia is messy. The sheer number of available insurance extras and benefits reflect this. In short, you can often add a few special protections that suit you and your unique situation.

Here are a few additional benefits you may want to consider:

  • Flood cover. Live in a flood zone? You may want to consider flood cover. Remember, most policies do not automatically include flood cover.
  • Accidental damage cover. Are you a bit of a klutz? Maybe you have a few children under the age of 10 running around? Accidental damage cover may be for you.
  • Motor burnout. Most contents policies will not cover appliances and machines that kick the bucket.
  • Portable contents. This covers any valuables you take outside of the home that are stolen or damaged. This may be worth considering id you have valuable jewellery or electronics that you often take with you.
  • Pet cover. We all love our pets. That is, of course, until your new vase lays shattered across the living room floor. Pet cover protects your items damaged by your furry friends. In addition, it may also cover some of your vet bills or temporary pet accommodation.

Finally, please note that pet cover is not the same as insurance. Head to our article on pet insurance for more information.

Can I add features to my policy in the future?

Absolutely! Insurers are flexible and understand that people’s situations and needs are constantly changing. Therefore, to make any adjustments to your policy, simply get in contact with your insurer.

To add features to your cover, follow these steps:

  1. Get in contact with your insurer and let them know you’re thinking of making a change.
  2. Lenders will not make the change until you pay them.
  3. Get a certificate of insurance, including the details of your policy.

Popular reasons for upgrading your policy include:

  • Property rates have gone up.
  • You’ve purchased multiple valuable items. This could include things like a new TV, computer, whitegoods etc.
  • If you purchase a new high-ticket item, like an expensive piece of jewellery or artwork.
  • You change your mind on addition optional protection.

I was broken into – how do I make a claim?

It’s easy to make a claim on your insurance. If you were broken into and had something stolen, here’s what you should do:

  1. Call the police. Always call the police first if there was a crime.
  2. Call your insurer. Get in contact with your insurance provider and let them know you’re about to make a claim.
  3. Make your claim. Submit a claim over the phone or online. Aim to provide as much detail as possible when you lodge your claim.
  4. Evidence. Insurers don’t just pay out willy-nilly. Therefore, you will need to provide evidence of the theft or damage. This can include the police report, photos of the damage, receipts or other proof of ownership.
  5. Inspector. Your insurer may or may not send out an inspector to assess and confirm the damage as well as arrange repairs and establish quotes.
  6. Process. Wait while the lender processes your claim. You will be notified of the outcome as soon as possible.

Compare home insurance – how do I renew my policy?

Get in contact with your provider when your policy is expired to renew it. However, there are a number of things you should do first.

To begin, check your level of cover. Moreover, compare your cover against what your home looks like now. If you took cover out a few years ago, before you installed a new pool and carport, you may want to consider increasing the cost of rebuilding your home.

In addition, it pays to shop around online to see what other details are out there. Insurance is a very competitive market and each insurer is trying to secure your business. Therefore, you may find a great deal to switch to another provider.

Monzi Personal Loans

We thought we had better introduce ourselves. We are Monzi, a lender-finder based in Brisbane. While we do not offer insurance, our lender-finder service is one of the best in the game.

In short, instead of applying with multiple different lenders online, you can lodge one application with Monzi. From there, we’ll aim to match you with a lender from within our network.

Moreover, our 100% online business model provides heaps of benefits, including:

  • No physical paperwork
  • No queues
  • Apply 24/7
  • 60 minute outcomes during business hours
  • Fast application
  • Secure and safe.

Ultimately, Monzi can potentially make matching with a lender easy!

Can Monzi compare home insurance?

No, as we mentioned earlier, Monzi cannot compare home insurance. Instead, we are a lender-finder service that might be able to match you up with a potential lender from within our network.

More specifically, the lenders in our network may be able to offer personal loans from $300 to $10,000.

To give you a better idea, the below table displays the personal loans potentially available through Monzi’s network of lenders:

LoanTermAmountSecurity
Small personal loanOver 12 months$300 to $2,000Unsecured
Medium personal loan13 to 24 months$2,001 to $4,600Secured
Large personal loan13 to 24 months$5,000 to $10,000Secured

Please note, the repayment terms may vary between lenders. Therefore, the actual terms of your loan may not reflect what we present above.

How does Monzi work?

Put simply, Monzi’s lender-finder service is a three step process.

  1. Use the loan slider to select an amount and term to apply for.
  2. Complete the submission form by providing certain pieces of information.
  3. Wait while Monzi tries to pair your application with a potential lender. If a lender is able to make you an offer, they get in touch.

Lenders send through a loan contract if they approve your application. Once you approve your application, your funds are deposited into your account. Furthermore, a direct debit is set up from your account so your repayments are automatically deducted.

If you cannot afford an upcoming repayment, get in contact with your lender. By giving them enough notice, they may be able to reschedule your repayment.

If, however, something happens like losing your job, get in contact with your lender. In short, you may be eligible for financial hardship if your circumstances change.

Here’s how to apply for hardship.

  1. Get in contact with your lender’s hardship department.
  2. Supply evidence of hardship. This could include:
    • medical certificate
    • separation certificate from employer
    • bank statements showing reduced income
    • etc.
  3. Lender assesses your claim and provides an outcome.

Ready to apply? Scroll up!

Want more Monzi? Head to our article on how to compare car insurance. Alternatively, check out our guide to selecting business insurance.

Factor In

Costs

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.