What is accidental damage cover for home insurance?

What is accidental damage?

Accidental damage offers coverage for unexpected accidents that may occur to your property or belongings. Unlike standard cover that typically protects against “listed events”, such as storm, fire and theft, accidental damage cover helps provide broader protection and includes unintentional damage caused around the home.

Benefits of adding accidental damage cover

Imagine spilling red wine on your carpet to such a degree that the carpet needs to be replaced. Without accidental damage cover, you might face the financial burden of repairs or replacements. By adding accidental damage cover to your policy, you take a proactive step in protecting yourself against mishaps around your home that are caused unintentionally.

What may be covered under accidental damage cover?

One of the primary areas of coverage is electronics and appliances. In today’s digital age, we heavily rely on these devices. Accidental damage insurance can help cover the cost of repairing or replacing items if they are accidentally damaged.

Additionally, this add-on covers furniture and personal belongings. Whether it’s a spill on your couch or the accidental breakage of valuable items, this policy can help cover repair or replacement costs.

What may not be covered under accidental damage cover?

While accidental damage insurance is a valuable addition to your policy, it's important to be aware of certain exclusions that may limit or exclude coverage for specific situations.

Exclusions related to wear and tear: Accidental damager cover typically does not cover damage from normal wear and tear, including gradual deterioration due to age, usage, or exposure to the elements, or the presence of mildew or algae. Regular maintenance can help minimise these risks.

Chemical damage: You need to take care with the cleaning products that you use around the home because any damage caused through cleaning that involves the use of chemicals is not covered under accidental damage.

Renovations: Water entering your home through an opening made for the purpose of alterations, additions, renovations or repairs is not covered under accidental damage. Be sure to weatherproof your home during renovations.

Damage caused by pets: While pets are beloved family members, they can unintentionally cause damage. Accidental damage insurance may not cover pet-related damage, such as scratches or stains. Preventive measures and training can help protect your belongings.

Electronic devices: If damage occurs to your electronic equipment or data because of an electronic malfunction or failure, or a mechanical malfunction or failure, or a virus or processing error, that is not covered under accidental damage.

Intentional or criminal damage: This insurance covers unexpected incidents but usually excludes intentional or criminal acts. Damage from deliberate actions or illegal activities is typically not covered. It's important to report any criminal activities to the authorities.

Equipment and instruments: Fishing and sporting equipment, musical instruments or firearms while someone is using them are not covered under accidental damage.

To find out all the specific exclusions, review the terms and conditions of your policy. Being aware of these exclusions allows you to take necessary precautions to protect your property and possessions.

What excess do I pay for accidental damage cover?

An excess is the amount you contribute towards the cost of your claim. The type of excess you need to pay depends on what your claim relates to. If your home insurance policy is with RACV Insurance, there are 3 types of excesses:

• basic
• accidental damage, and
• special.

If you do purchase accidental damage as an optional cover, a $300 excess will apply for accidental damage claims. The accidental damage excess replaces the basic policy excess or special excess for accidental damage claims only. Your current Certificate of Insurance shows the types of excesses that apply to your policy.

How to add accidental damage cover to your policy

Adding accidental damage cover to your combined building and contents policy is a simple process. For example, here’s how you can update your existing policy with RACV Home Insurance:

1. Log in to your RACV account on the RACV website. If you don’t have an account, you can create one using your policy details.

2. Navigate to the ‘Manage My Policy’ section and look for the ‘Add Accidental Damage Cover’ option.

3. Follow the prompts to add this coverage to your policy.

Keep in mind that adding this cover may affect your premium. However, the benefits of having accidental damage cover may outweigh the potential costs of repairs or replacements.

^{The information provided is general advice only. Before making any decisions, please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.}