What is accidental damage cover and should you consider it

When it comes to insurance, many people focus on protecting their home and belongings from major events like fire, theft, or storms. But what about everyday accidents? A spilled drink on the carpet or a shattered TV screen—these are the mishaps we often don’t plan for. That’s where accidental damage cover comes in. It’s an extra layer of cover for those unexpected moments that aren’t always included in standard home insurance policies.

In this article you will learn:

1. Key Takeaways
2. What is accidental damage cover?
3. Example accidents you can claim for with accidental cover
4. What is not covered by accidental damage insurance
5. Who should consider taking out accidental damage cover
6. Why might accidental damage cover be beneficial for you
7. Few more details before choosing accidental damage optional cover

Key Takeaways

• Accidental damage cover is part of the Advanced Cover option that you can add to your home building or contents insurance for an additional premium. It helps cover unexpected accidents like spills, broken laptops, or damage caused by a spilled can of paint during a DIY project.  
• The Advanced Cover option also provides Motor Burnout cover.
• This cover can help with things like damaged furniture, wine stains on carpets, or electronics that get dropped and broken.
• It doesn't cover everything, though. You may find things like damage from pets, wear and tear, or power surges (not caused by an insured event) aren't included in your policy. It's important to check your PDS to make sure you know what you're getting.
• This type of insurance is great for families with kids and those who want extra financial protection for everyday accidents that regular insurance doesn't cover.

What is accidental damage cover and how to get it?

Accidental damage cover is a component of the Advanced Cover option for your home or contents insurance. It protects against sudden, unexpected, and unintentional damage to your property or belongings. Unlike standard home and contents insurance, which covers events like fire, storms, or theft, accidental damage insurance steps in for everyday mishaps. For example, it can help if a stray ball smashes your TV screen, or a coffee spill ruins your laptop. It’s an add-on worth considering, especially if accidents tend to happen in your household.

Example accidents you can claim for with accidental damage cover

What does accidental damage cover?

Accidental damage insurance can cover your building, your contents, or both, depending on your situation. For homeowners, adding this extra protection to both policies can mean you’re covered for unexpected mishaps inside and out. Renters, on the other hand, might only need coverage for their personal belongings.

Examples of what’s covered for buildings:

• Dropping something heavy and causing damage to sinks or bathtubs
• Dropping something heavy on your oven door causing damage
• Tripping over and putting a hole in the wall

Examples of what’s covered for contents:

• Accidental breakage of your TV or home entertainment system
• Spilling red wine or coffee on your carpet or furniture
• Dropping and damaging your smartwatch at home
• Furniture damage caused by everyday mishaps

Accidents involving kids:

Whether it’s your own children or visiting little ones, accidents are bound to happen. For example, if your nephew knocks over your TV during a movie night, accidental damage cover could cover the cost to repair or replace it. However, always read the fine print, as some providers may have exclusions.

What is not covered by accidental damage cover

While accidental damage cover offers valuable protection for unexpected mishaps, there are limits to what it can cover. Here are some examples of what may not be included:

1. General exclusions:

• Damage caused by pets or animals kept on the property
• Minor dents, scratches, or chips to walls, floors, or furniture that do not affect usability
• Cracks, chips, or breakages to glassware, or china while being used
• Damage caused by power surges, unless resulting from an insured event like a lightening
• Loss or damage from mechanical, electrical, or electronic failure, unless covered under specific optional benefits like ‘motor burnout’

2. Other exclusions:

• Scorching, burning, or melting caused by cigarettes, tobacco, or similar items
• Accidental damage to swimming pools, outdoor spas, and related items that aren’t listed as ‘covered’ in your Product Disclosure Statement (PDS).

While this list highlights common exclusions, always read the Product Disclosure Statement (PDS) for a full understanding of what is and isn’t covered by your policy. If you have specific concerns, RACQ or your chosen insurer can clarify any questions.

Who should consider taking out accidental damage cover

Deciding to add accidental damage cover to your insurance comes down to your needs and circumstances. Think about how often accidents happen in your home. Are you prone to breaking expensive items? Would replacing them be a financial strain?

Accidental damage cover is part of the Advanced Cover option and will increase your premium, so be sure to weigh the costs against the benefits. However, if replacing a large ticket item would be a financial strain, it might be a good choice to consider this additional cover. Keep in mind that an out of pocket excess applies when you make a claim to accidentally damaged items, which is another factor to consider when deciding if it's right for you.

1. Homeowners

Homeowners might decide to add accidental damage cover to their home and contents insurance for financial protection against unintentional mishaps. This cover can help with repairs or replacements, like fixing broken glass or a smashed TV, so you are not covering the full repair or replacement cost yourself. However, keep in mind that an excess fee is still payable, which is an out of pocket expense.

Accidental damage is one of the most common home insurance claims, with causes ranging from kids playing indoors, to everyday mishaps like spilled wine, dropped devices, from moving or rearranging furniture. Whether it’s a footy ball through the window or a stain on the carpet, accidents can happen to anyone. Optional cover can help ease the stress and cost of these unexpected events.

2. Renters

Renters should consider adding accidental damage cover to their contents insurance for an additional layer of financial protection. While standard contents insurance can protect against loss or damage from events like fire or floods, accidental damage cover helps safeguard you against costs for unexpected mishaps caused by you, your household, or visitors. Adding this optional cover for an additional premium can provide renters with added confidence that their belongings are protected.

Why accidental damage cover can be beneficial for you

Accidents can happen when you least expect them, and the costs of repairs or replacements can add up quickly. Accidental damage cover (called Advanced Cover) offers an extra layer of financial protection for your home and belongings. It’s available for an additional premium, but here are some scenarios you might experience that make it worth considering:

• Spills and stains: Whether it’s a glass of wine knocked over on your carpet or coffee spilled on your couch, accidental damage cover can help with the costs of cleaning or replacing affected items.
• Broken electronics or furniture: If something accidentally hits and cracks your TV screen, this cover helps take care of the repair or replacement costs – leaving you to only pay the excess during the claim process.

Choosing accidental damage cover comes at an additional cost but can help reduce financial stress and keep things running smoothly after an unexpected mishap.

Few more details before choosing accidental damage cover

Deciding whether accidental damage cover is right for you comes down to understanding your lifestyle and the unique risks in your home. Consider asking yourself a few key questions: Do I have kids who may accidentally spill drinks or break items? Do I frequently host gatherings where accidents might happen, or have guests with young children who might cause unintended damage? If you answered “yes” to any of these, accidental damage cover might be a valuable addition to your insurance policy. It provides a financial safety net for life’s unexpected moments.

How to purchase accidental damage cover for my home insurance policy

You can choose to add accidental damage cover by selecting Advanced Cover option at the time you set up or renew your home insurance policy. The same goes for contents insurance.

This add-on may have a different name depending on the insurer. At RACQ we refer to our insurance add-ons as optional benefits. For example, when you're getting a contents insurance quote from RACQ, you'll have the option to include additional cover to protect your belongings against accidental damage for an additional premium. You get to decide whether you would like to add this to your policy, that way it is tailored to what you need.

How to claim for an item that is accidentally damaged?

Claiming on your accidental damage cover is a similar process to claiming on any of your other insurance policies. If you’re with RACQ, refer to the steps outlined for how to make a home and/or contents insurance claim.

You can lodge your claim online or, if you prefer, you can speak to one of the RACQ representatives. Remember to have your documentation and proof of ownership ready to make the process even smoother.

Can I claim for my belongings that got accidentally damaged outside of my home?

No, with accidental damage cover, you may only be able to claim for items that are accidentally damaged in a fully enclosed and lockable part of your home. However, an optional benefit called ‘Items away from home’ can be added to your Contents Insurance policy for an additional premium, that may cover items outside your home. Keep in mind that specific items and conditions apply, so it’s always a good idea to review your policy or speak with the team at RACQ to understand your coverage limits and exclusions.  

Conclusion

Accidental damage cover as part of the Advanced Cover optional benefit is a practical way to protect your home and belongings from life’s unexpected moments. This optional benefit can save you time, money, and stress. If you’re looking to cover specific items or you have more questions about what else is offered with accidental cover, contact RACQ today.