What Is Accidental Damage Home Insurance?

January 14, 2023
What Is Accidental Damage Home Insurance

Key takeaways:

  • Accidental damage home insurance covers unintentional damage or loss of items in a home or damage to the building itself.
  • Accidental damage home insurance is not the same as home insurance and you need to pay an additional premium for this policy.
  • Everyone should purchase accidental damage home insurance because accidents can occur anywhere at any time

Having home insurance is important, but it shouldn’t be your only policy. Accidents in the home occur more often than you would think. Here’s when coverage for accidental damage comes in handy. So, what is accidental damage insurance and what does it cover? 

Accidental damage insurance covers unexpected mishaps that damage belongings in your home. Various factors determine what this policy covers. Everything you need to know about this policy is covered in detail here.

What is accidental damage home insurance?

Accidental damage insurance is a plan that covers unintended damage to your building or the contents of that building. This plan covers any damage or loss that happened suddenly and unintentionally

Examples of scenarios accidental damage insurance covers include: 

  • Breaking delicate items like electric screens, plates, glass, and others.
  • Staining your carpet with red wine or a permanent marker.
  • A power surge damages electronics such as mobile phones, laptops, or televisions.

As you can see, these scenarios consist of only accidents. They can be beyond your control at times. As a result, incidental damage insurance may be the best choice. You should do this so that when an insured event occurs, you can rest easy.

Is accidental damage covered by home and contents insurance?

What Is Accidental Damage Home Insurance

Accidental damage insurance is not the same as house insurance. This is because home insurance only covers your home in cases of theft, storm, or fire.

That said, it all depends on the insurer. In most cases, your home insurance policy will not cover damage caused by an accident. 

You should read the Product Disclosure Statement (PDS) of your policy. This is because some insurers may provide accidental damage cover as extra under your home insurance. There would be an added premium for this feature.

What doesn’t accidental damage insurance cover?

Granted, there are several coverage levels when it comes to accident damage insurance. However, this cover does have its limits and cannot include every event.

Some typical clauses not covered by accidental damage insurance are listed below.

  • Intentional damage caused by you, guests, or anyone else in the house
  • Burns from cigars or pipes
  • Accidental loss of computer files due to a virus
  • Deterioration caused by using cleaning chemicals not optimal for households
  • Damage from renovations
  • Standard wear and tear of your belongings
  • Poor workmanship done on your home
  • Use-related damage to sporting goods
  • Loss or damage of money or cheques

Inclusions and exclusions vary from insurer to insurer. Hence, you need to look through your policy documentation and confirm the terms and conditions of the plan.

Are personal possessions covered outside of the home?

Most times, accidental damage insurance does not cover any items outside of your home. This is because the policy is in place to only cover items within your home.

Nevertheless, you can opt for an optional cover called “Personal Effects.” This covers items you usually take outside. 

Who should go for accidental damage insurance?

Anyone can make a mistake and accidentally break or ruin something at home. Thus, everyone should consider getting accidental damage insurance. 

However, this plan will be especially useful for people with children because they are more likely to cause damage.

What is the cost of accidental damage insurance?

As mentioned, accidental damage insurance is an optional cover that comes with a home insurance policy.

Therefore, adding it to your policy would increase your premium. Ultimately, the total cost of this insurance would depend on various factors.

Some factors that may affect and increase your premium include:

  • The price of your possessions and building
  • Your home address
  • Your area’s proneness to natural disasters

Should you get accidental damage insurance?

Accidental damages are upsetting and can be quite expensive, especially when they affect valuables like laptops, carpets, and TVs.

Therefore, think about how valuable the contents of your home are and the chances of accidental mishaps occurring. Usually, it is a worthwhile investment to get this insurance and prevent breaking the bank or your heart.

How do you get accidental damage coverage?

What is accidental damage home insurance

Getting accidental damage insurance is pretty straightforward. All you need is underwriting approval and to pay an extra premium. After this, your insurer will include the cover in your home insurance policy.

Alternatively, you can choose to add the cover when opting for a new policy or reviewing a previous one.

Conclusion: what is accidental damage home insurance?

With the help of our accidental insurance guide, we hope you can make a more informed decision on your loan. But feel free to check out our finance section for more guides and tips. 

Accidents can happen to anyone, at any time, anywhere. So, when they do happen at home, having a policy that covers them can be a huge advantage. Thus, you must consider getting accident damage cover.

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