How much you should insure your contents for in Australia depends on home size and belongings, but general 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. For average Australian family, contents value is often underestimated by 30%, with many 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 $10K to $15K including sofa $3K, TV $2K, furniture $5K, dining $5K, kitchen appliances fridge $2K, dishwasher $1K, small appliances $1K, total $5K to $10K, bedrooms 3 beds $3K each plus wardrobe $1K and bedding $500, total $15K to $20K, clothing $15K to $25K for family, electronics $10K 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 high-value items over $1,000 like jewellery and art, list individually. For renters in 2-bed, $40K to $60K may be enough, for homeowners with 4-bed and expensive furniture $150K. So you should insure contents for $80K to $120K for 3-bed, $100K to $180K for 4-bed, with accurate inventory to avoid underinsurance.
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