Why you might need to update your home insurance coverage

Reasons you might need to update your home insurance coverage

Changes in circumstance

“It’s important to ask yourself whether your home insurance policy aligns with your current personal circumstances and living arrangements,” says Bloodworth.

“It’s easy to forget the impact of life milestones such as getting engaged, undertaking a home renovation, taking a new job or participating in a new hobby or interest, and their effects on your home insurance.”

For example, an engagement usually comes with an expensive engagement ring, while getting a new job might prompt you to invest in a new laptop or smartphone.

Renovations

Renovations, extensions and other significant home improvements can drastically impact your home's value.

"Whether you've added on a deck, upgraded your bathroom or replaced your carpets with flooring, it's a good idea to update your home insurance coverage," Bloodworth says.

Add together your costs, including any demolition, debris removal, materials and rebuilding fees, including any reasonable fees for an architect, engineer or surveyor, to estimate the additional value you need to add to your home insurance cover.

Gifts and large purchases

The cumulative value of your possessions can quickly add up. Some items can even appreciate in value, such as personal collections.

"Sentimental and high-value items such as watches, jewellery and family heirlooms are usually top of mind when it comes to considering your home and contents insurance coverage," Bloodworth says. "But it’s everyday items, new purchases and even birthday or Christmas presents that we sometimes forget to account for."

Check whether your new computers, tablets, home office equipment, home entertainment, exercise equipment, fitness wearables and kitchen appliances are all covered by your home insurance policy each financial year.

To help you estimate the approximate cost to replace your home contents, use RACV's Home Contents Insurance calculator.*

Portable items 

Common items used outside of the home, such as phones, laptops, surfboards, golf clubs and other holiday items may require the addition of optional Portable Items Cover to your home insurance policy.

This type of insurance helps cover certain items when you take them outside your home.

More frequent natural disasters

Devastating floods, severe storms, summer bushfires, golf ball-sized hail and even earthquakes… if the past few years have taught Victorians anything, it’s that the next extreme weather event can happen at any time. 

The increasing severity and frequency of extreme weather events has implications for the way we protect the things we own and treasure the most, such as our homes and contents.

It's important to update your home and contents insurance coverage to cater for the threats you might be more likely to encounter.

“For most of us, our home is the biggest financial investment we make in life,” Bloodworth says. “Because of how quickly severe weather events can occur in Victoria, we all need to be prepared and vigilant, which includes having adequate home insurance coverage in place at all times."

^{Terms, conditions, exclusions and limits apply - see your PDS for details.  The information provided is general advice only. Before making any decisions, please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au.  RACV Home Buildings and Contents Insurance, RACV Buildings Insurance, RACV Contents Insurance, RACV Landlord Insurance and RACV Renters Insurance are all issued by Insurance Manufacturers of Australia Pty Limited ABN 93 004 208 084 AFS Licence No. 227678. As a distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed.}

_{* The RACV Home Buildings and Home Contents Calculators provide an indication of rebuilding or replacement costs only and in no way guarantee the amount RACV Insurance may agree to insure your home or contents for. It is your responsibility to check that this amount is enough to cover the rebuilding costs of your home or replacement costs of your home’s contents at today’s prices. Before you decide whether to buy or continue to hold RACV Home Insurance, you should calculate the actual replacement value of your home and contents and consider the information in the Product Disclosure Statement.}