How much you should insure contents for in Australia depends on home size, but guide is $60K to $80K for 2-bedroom unit, $80K to $120K for 3-bedroom house, $100K to $180K for 4-bedroom house, based on replacement cost new for old. Many Australians underinsure by 30%, insuring $50K when actual is $100K, leading to underinsurance penalty where insurer only pays proportion of claim. To estimate, do room-by-room inventory: lounge sofa $3K to $5K, TV $1K to $3K, total $8K to $15K, dining $3K to $6K, kitchen fridge $2K, appliances $3K, total $6K to $12K, 3 bedrooms beds $4.5K, wardrobes $3K, bedding $1.5K, total $15K to $25K, clothing $15K to $25K for family, electronics $8K to $15K, jewellery $5K to $10K, tools $3K, total $80K to $120K for 3-bed. Use insurer contents calculator from NRMA, Allianz, Budget Direct, which asks bedrooms and lifestyle, and add 10% buffer for items missed. For renters in 2-bed, $40K to $60K may be enough. For high-value items over $1,000 like engagement ring $5K, list individually. Review annually as you buy new items. So insure contents for $80K to $120K for 3-bed, $100K to $180K for 4-bed, with accurate inventory to avoid underinsurance and ensure full replacement.
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