What is difference between home and contents insurance in Australia is that home insurance, also called building insurance, covers structure of house and permanent fixtures, while contents insurance covers personal belongings inside. Building insurance covers house itself, walls, roof, floors, permanent fixtures like kitchen cupboards, bathroom, plumbing, electrical wiring, plus outbuildings like garage and shed, with sum insured $500K to $1M for rebuild cost, covering damage from fire, storm, flood, vandalism and accidental damage, costing $1,200 to $1,800 per year for $500K building. Contents insurance covers movable items inside like furniture, electronics, clothing, jewellery, appliances, with sum insured $20K to $150K, covering theft, fire, storm, flood and vandalism, costing $300 to $800 per year for $80K contents. For example, if fire destroys house, building insurance pays to rebuild walls and roof $500K, contents insurance pays to replace sofa, TV, clothes $80K. Building insurance required by mortgage lender, contents optional but recommended, especially for renters who only need contents as building covered by landlord or strata. Combined home and contents insurance covers both for $1,800 to $2,500 per year for average house, with single excess and 10% discount. So home is structure, contents is belongings inside.
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