Optional extras with home insurance

Home insurance policies can come with optional coverage you can choose from based on the level of protection you want. Vic is no stranger to flash flooding, strong winds and storms. If you live in areas like Moonee Valley, Glen Eira and Maribyrnong, it could be worth considering optional flood cover. Motor burnout cover can help if a power surge caused by a storm damages the motor in a household appliance. Similarly, you can get optional cover for items you carry outside your home and specific items you’d want covered like your mobile phone, bicycle, e-scooter, jewellery or musical instruments – looking at you, Brunswick musos!

Flood: If you’re in a flood-prone area, you might consider adding flood cover to your policy. For instance, the City of Glen Eira in Melbourne’s South-East has been hit by flash flooding at least 10 times between 2003 and 2017 – in one instance damaging more than 150 homes and businesses. Keep in mind that, in insurance language, ‘flood’ doesn’t include every water-related event that could occur. For example, damage caused by rainwater, escape of liquid or a burst pipe might well be covered by standard cover.

Motor burnout: You know how you’re meant to unplug your electronics during a storm? Do you forget to do it every single time, or is that just us? If an appliance gets damaged by a power surge, motor burnout cover helps you replace it.

Personal effects: Personal effects can include things like jewellery, and you can also opt to have them insured outside of the house. You can also potentially get insured for unspecified personal effects – belongings that aren’t listed on your cover but that you take out of the house with you (usually up to a certain limit).

For perspective, there were more than 95,000 recorded instances of robbery, burglary and theft in Victoria in the year up to March 2026, according to the Crime Statistics Agency – nearly 7,000 of those incidents were bicycle thefts. With optional specified personal effects cover, things like bicycles (including e-bikes) can be covered.

Accidental damage cover: That friend you adore but who you just know is going to spill wine on your couch? There’s insurance for that. This type of accidental damage isn’t usually covered in standard home and contents policies, but you can add it as an extra.

Optional extras can vary among insurers. For instance, specified personal effects cover may apply only to items that are worth more than a certain monetary value, so it’s always a good idea to check the Product Disclosure Statement so you know what options are available on a policy.

Typical home insurance exclusions

Most home insurance policies come with exceptions or restrictions on what they will cover. Areas like Port Phillip Bay in the heart of Melbourne are at risk of coastal erosion, coastal inundation and changes in underground water, according to the Department of Energy, Environment and Climate Action. Unfortunately, damage caused by such events is commonly excluded by home insurance policies. Asbestos-related claims may also be excluded, and around a third of Victorian homes are believed to contain asbestos. Other typical home insurance exclusions include gradual deterioration, wear and tear, loss or damage resulting from illegal or intentional acts, and cyberattacks or hacking – the latter is more for smart home devices or similar items.

And remember, even if your policy provides cover for events such as storms or bushfires, there may be a waiting period before the cover kicks in – so, it’s a good idea to weigh up the risks for your home in Vic and get your cover sorted well in advance.

Risks related to the sea and underground water: If your home cops damage from things like king tides, storm surges or underground water, it’s usually not covered. Flooding from rivers or heavy rain might be included, but anything to do with the sea or underground water is typically a no-go.

Asbestos: If your property has asbestos and it causes damage or health issues, insurers won’t cover it. Victoria houses 34% of Australia’s oldest homes (built before 1900). So, it might come as no surprise that a similar number of homes in the Garden State are believed to contain asbestos in places such as walls and ceilings, roofing, gutters and downpipes, according to WorkSafe Victoria. So, for anything asbestos-related, it’s likely that you’ll need to forget about home insurance and dip into your own pocket.

Breaking the law: If damage happens because you’ve been up to something illegal – like running a dodgy business or breaking council rules – your insurer won’t foot the bill. This includes if you fail to comply with laws and regulations related to installing smoke detectors, using non-conforming building products, keeping restricted dog breeds and possession of illegal substances or drugs.

Hacking or cyberattack: If your smart home devices or systems get hacked, or you’re hit by a cyber-attack, it’s usually not covered. You might need separate cyber insurance for that kind of protection. While cyber-attacks are still comparatively low, they are on the rise, according to the Australian Signals Directorate (ASD). The agency has reported that one in 4 attacks in the 2024–2025 financial year took place in Vic.

When considering home insurance, it’s important to check the Product Disclosure Statement carefully for the full list of exclusions and conditions of cover so you’re aware of what’s not covered and can make an informed decision on purchasing a policy.

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What factors can affect the cost of home insurance in Vic?

Factors that contribute to your home insurance costs in Vic are closely tied to where you live – if it’s a suburb like Moonee Ponds, Essendon, Yarraville or Maidstone, the higher possibility of flash flooding can contribute to higher premiums. Other general factors include how much cover you want, any recent or even not-so-recent claims you’ve made and finally your home and contents themselves and how much they would cost to repair or replace.

Your level of cover

You can usually customise your cover by adding additional cover options. The more comprehensive your package, the more you’re likely to pay. Likewise, the higher the value of your home (and its contents if you’re also covering the stuff you own), the more it’s likely to cost to insure them. In 2025, a house in Toorak had a median sale price of $6.1 million while in Wyndham Vale the median price was $609,000, according to Victoria’s Department of Transport and Planning – out of the two, the Toorak address is probably going to attract the higher premium!

Your claims history

Unfortunately, if you’ve made claims on your home insurance in the past, especially the recent past, it could make a difference here. Your claim history can be one of the factors insurance companies take into consideration when they work out your premiums.

The area you live in

To help calculate your premiums, insurers estimate the likelihood that damage will occur to your house and belongings. If you live in an area that’s prone to property-related crime or severe weather, it could mean your premiums end up higher. The City of Casey recorded 1,230 incidents of residential burglaries or break-ins while Frankston registered 510, according to the Crime Statistics Agency – based on this factor alone, residents in Casey are likely to pay more for home insurance.

How can I reduce my home insurance premium in Vic?

Reducing your home insurance premium in Vic can be made possible by increasing your excess and making your home safer with better home security. Raising your excess can help lower the state’s higher home insurance premiums and increasing your home’s security measures can help reduce its exposure to Vic’s significant rates of burglary and residential theft. You could also combine your home and contents cover and compare policies so you’re not paying more than you need to for the cover you want.

Increase your excess

Bumping up your excess (the amount you pay if you make a claim) can lower your premium. But it’s worth making sure it’s still an amount you can afford if something goes wrong.

Bundle up

Combining your home insurance with contents or other policies, like car insurance, could help you get a discount.

Boost your home security

Adding things like deadlocks, security cameras, or an alarm system can make your home safer and might earn you a lower premium.