Key takeaways
- Building = structure and fixtures. Contents = portable possessions.
- Renters need contents only.
- Strata owners: body corporate covers building — you cover contents and renovations.
Building and contents insurance protect different things. Here is who needs what and what each actually pays for.
On this page
Building insurance explained
Covers walls, roof, built-in wardrobes, kitchen and bathroom fixtures, flooring, fences, and garages. Pays to repair or rebuild after insured events. Includes legal liability for injuries on your property.
Contents insurance explained
Covers furniture, appliances, clothing, electronics, and valuables. Optional portable items cover extends protection outside the home. Specified valuables cover helps for jewellery and art above standard sub-limits.
| What's covered | Building | Contents |
|---|---|---|
| Walls, roof, permanent fixtures | ||
| Furniture and appliances | ||
| Theft of belongings | ||
| Fire damage to structure | ||
| Storm damage to roof | Varies | |
| Flood (varies by policy) | Varies | Varies |
| Legal liability on property |
Renters typically need contents only. Strata owners should check what the body corporate covers before buying building cover.
Who needs what
Owner-occupiers: both. Renters: contents only. Strata: contents plus any internal renovations beyond standard fit-out. Landlords: building (or landlord policy) plus consider landlord contents for furnished properties.
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Building vs contents — who needs what and what each actually covers.
Do renters need building insurance?
No. As a renter, you do not own the building, so building insurance is the landlord's responsibility. You need contents insurance for your own belongings — clothing, furniture, electronics — which the landlord's building policy does not cover.
Does building insurance cover fixtures inside the property?
Yes — standard fixtures installed by the builder (kitchen benches, built-in wardrobes, bathrooms, flooring) are typically covered under building insurance. Renovations and additions you make as the owner should be reported to your insurer so the sum insured reflects their value.
Can I insure specific valuable items separately?
Yes. Most contents policies have sub-limits for categories like jewellery, fine art, and musical instruments. If a specific item's value exceeds the sub-limit, you can list it as a 'specified item' on the policy for an additional premium to ensure full replacement value.
What is 'portable contents' or 'away from home' cover?
This optional extension covers belongings when they are outside the home — a laptop at a café, a camera on holidays, or sports equipment at a venue. Check whether the extension covers accidental loss and damage (not just theft) and any sub-limits that apply.