Should I consider accidental damage insurance?

We know that being insured helps 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, or accidental damage at home, such as accidentally knocking a hole in the wall while moving a couch 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.

Accidental Damage Insurance covers unintentional damage to your building or its contents at the insured address. 

This differs from Home and Contents Insurance or Contents Insurance, which protects your home and possessions or only your possessions in an insured event such as a 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".

Accidental Damage is an optional cover that can be added to your Home Insurance policy and it can be a worthwhile investment if you're looking for cover outside the "ten insured events" included in a Home and Contents Insurance policy.

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.

An Accidental Damage claim in the home could be due to:

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

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
• You accidentally put a hot pan on your benchtop causing scorch marks 
• Your pet runs through your home, overturns a table and damages it
• You spill red wine on a carpet by mistake
• You accidentally drop and break an expensive vase
• Your TV display was accidentally smashed by someone 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.

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

• 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 

• Cash, cheques, gift cards, and other similar financial items
• Clothing or accessories
• Mobile phones
• Swimming pools or spas
• Items used in any business, trade, or profession
• Bicycles or sporting equipment while being used

While your possessions may be covered when you add accidental damage cover inside your home, you can select to add an optional Personal Effects Cover to your policy to provide cover for the valuables you take away from the home.