Your home is one of the most significant investments you’ll ever make — and the things inside it matter too. Home & Contents Insurance helps protect your property and belongings against unexpected events like fire, theft, storm damage and more.

At Rivergum Insurance Brokers, we help you understand your cover, what it does (and doesn’t) protect, and how to manage risk in an evolving insurance market.

What Is Home & Contents Insurance?

Home Insurance generally covers the physical building you live in — whether it’s a house, townhouse, apartment or unit.

Contents Insurance covers your personal belongings inside the home — furniture, electronics, clothing, jewellery and other items — if they’re lost, stolen or damaged.

You can arrange:

• Building cover only

• Contents cover only

• Combined Home & Contents Insurance

What Does It Typically Cover?

While exact cover depends on your policy, most Home & Contents Insurance includes protection for:

Building Cover

• Fire, lightning, explosion

• Storm, hail, flood (where offered and specified)

• Escape of water

• Impact damage

• Theft or attempted theft (if specified)

Contents Cover

• Loss or damage to your belongings from events like fire, theft and water

• Personal items away from home (varies by policy)

• Replacement value or sum insured basis

General Overview of the Home Insurance Market in Australia

The Australian home insurance market has been through ups and downs in recent years, influenced by:

Increases in Claim Costs

Natural perils such as storms, hail and bushfire events have driven higher claim costs for insurers, which can translate into higher premiums.

Construction Cost Rises

The cost to rebuild or repair homes has increased significantly due to rises in:

• Building materials prices

• Labour costs

• Supply chain constraints
  These higher rebuild costs can affect the sum insured required for your property.

Underinsurance

Underinsurance happens when your sum insured (the amount you insure for) is less than what it would actually cost to rebuild your home or replace your contents. This can lead to substantial out-of-pocket costs if you have a claim.

As rebuild costs rise, the risk of underinsurance increases if sums insured are not reviewed regularly.

Why Regularly Review Your Sum Insured

Rebuild Cost Shifts

Over time, the cost to rebuild your home may increase due to changes in materials or labour costs. An old sum insured figure may no longer be adequate.

Contents Value Changes

Purchasing new items, renovations or lifestyle changes can increase the value of your contents.

Market Conditions

Insurers adjust their assessments of rebuilding and replacement costs based on current economic conditions.

💡 Tip: Review your sums insured at least annually — or whenever you make significant changes to your home or contents.

Premium Rises — What’s Driving Them?

Premiums may increase for several reasons:

Increased Claim Frequency & Severity

More frequent severe weather events and higher repair costs can push premiums upward.

Inflation and Economic Pressures

General inflation affects the cost of materials, labour and claims handling.

Risk Exposure

If your property is in a high-risk area (e.g. bushfire zone, flood-prone region), insurers may charge higher premiums or impose specific conditions.

Underinsurance Loadings

If the sum insured is inadequate, penalties can apply at claim time — sometimes making the effective cost of cover much higher.

Regular reviews help ensure your cover remains appropriate and competitive.

Common Exclusions & Conditions

Be aware that most policies exclude or limit cover for:

• Wear and tear or gradual deterioration

• Poor maintenance

• Certain natural perils unless specifically included

• Unapproved renovations or changes to the property

Checking your Product Disclosure Statement (PDS) and policy wording helps avoid surprises at claim time.

Tips to Manage Your Home & Contents Insurance

1. Choose the Right Sum Insured

Ensure your rebuild cost and contents figures reflect current values.

2. Understand Your Excess

Your excess is what you contribute towards a claim. Choosing a higher voluntary excess can sometimes reduce premium, but only if it’s affordable at claim time.

3. Consider Optional Covers

Depending on your circumstances, you may benefit from:

• Flood cover (where applicable)

• Accidental damage options

• Jewellery and high-value item schedules

4. Maintain Your Property

Documentation of maintenance and upgrades can support claims and risk assessment.

5. Review Regularly

Annual check-ins help keep your cover up to date with changing needs and costs.

Why Arrange Through Rivergum?

Home & Contents Insurance isn’t just about a policy — it’s about protection that actually covers you when it counts. As brokers, we:

• Assess your property and contents values

• Help calculate accurate sums insured

• Explain key terms, exclusions and conditions

• Compare options across reputable insurers

• Support you through claims if the unexpected happens

We aim to ensure you’re neither underinsured nor paying for cover you don’t need.

Speak With Us

If you’d like to review your Home & Contents Insurance, update your sums insured, or understand how market changes affect your cover, we’re here to help.

Contact Rivergum Insurance Brokers to discuss your home, your belongings and your peace of mind.