We know that being insured helps to provide peace of mind so that when things go wrong, you’re covered for loss or damage to your belongings.

But have you ever stopped to think if your current cover protects you from life’s expensive little mishaps, such as accidentally reversing over a bicycle or spilling wine on the carpet?

Well, this is where Accidental Damage Insurance can help — and it’s probably not as expensive as you might think.

What is Accidental Damage Insurance?

Accidental damage insurance covers unintentional damage to the building or its contents. This is different from Home and Contents Insurance, which protects you in the event of fire, storm, or theft.

At Budget Direct, we define ‘accidental damage’ as “loss or damage caused by a sudden, unintended and unexpected event that is not the result of a deliberate act”.

Is it worth getting accidental damage insurance?

Accidental Damage Cover is usually an add-on to your home insurance policy, but for less than $6 a month it could be a worthwhile investment.

Remember, there’ll be excess to pay before you can claim but given how expensive many items in the home can be, Accidental Damage Cover may be worth considering.

† In 2020, 80% of new Budget Direct customers paid less than $70/yr for Accidental Damage Insurance.

Common accidental damage claims:

From 2017-2021 the average cost of an Accidental Damage claim was $3,000, with the top causes as follows:

  • TV claims (children throwing objects at the TV, or moving furniture around)
  • Laptops and iPads being dropped
  • Lost hearing aids or jewellery at home

Average cost:

  • The average cost of a TV is $1,200 [1]
  • The average cost of a laptop is $1,300 [2]
  • The average cost of an iPad is $530 [3]
  • The average cost of a hearing aid is $3,000 [4]

What may be covered under accidental damage insurance?

Accidental damage cover insures your home and its contents against accidental loss or damage, such as:


  • You accidentally knock a hole in the wall while moving a couch.
  • Damage to a laminate benchtop when you accidentally place a hot frypan on your benchtop.
  • Your dog jumps on your back door and breaks it.


  • Spilling red wine on a carpet by mistake.
  • Dropping and breaking an expensive vase.
  • Your child accidentally breaks the TV while playing with a ball inside the house.

Before you choose a policy make sure to check the Product Disclosure Statement (PDS) to see what is and isn’t covered by your provider.

What may not be covered under accidental damage insurance?

Exclusions for accidental loss or damage are determined by your individual policy and insurer, but common exclusions include:

Accidental loss or damage caused by:

  • Any intentional or deliberate act
  • A tenant living in a property owned by you
  • Cleaning involving chemicals other than household chemicals
  • A computer virus or loss and corruption of files
  • Cigar, cigarette, or pipe burns
  • Construction or renovating 

Accidental loss or damage to these items:

  • Cash or cheques
  • Clothing or accessories
  • Mobile phones including smartphones
  • Swimming pools or spas
  • Items used in any business, trade, or profession
  • Bicycles or sporting equipment while being used

Does accidental damage insurance cover my possessions if I take them outside the house?

While your possessions may be covered by Accidental Damage Insurance inside your home, you can select to add optional Personal Effects cover to your policy to provide cover for the valuables you regularly take outside.

How do I get accidental damage cover?

At Budget Direct, Accidental Damage Insurance can be added to your Home and Contents policy at an additional premium and underwriting approval. You can also add cover when purchasing a brand-new policy or when reviewing an existing one.

As with any insurance policy, you should read the PDS carefully before deciding if it is right for you.

Find the level of home and contents cover that suits your needs and get a combined 30%^ off your first year’s premium for a new policy purchased online.

Learn more about Budget Direct’s Accidental Damage Insurance.