Home Insurance Smart Guide

3. Other types of insurance

What youll learn: pets, your cleaner and landlords can be insured too.

Dont be seduced by what the Australian Consumers Association calls "junk" insurance policies that cover less than likely risks or that make it hard to make a claim. That said, it may pay to cover yourself for things like public liability.

Public liability insurance

Most insurers offer cover for public liability as part of a home and contents policy. This insurance protects you should somebody sue you for an injury sustained while visiting your home.

Domestic workers insurance

A cleaner comes to your house once a fortnight for three hours. Are you insured should there be an accident? If you provide your cleaner with materials, then generally speaking youre acting as an employer and as such the cleaner isnt covered under the public liability insurance thats generally part of your contents policy. However, many insurers now offer domestic workers' insurance as an adjunct to policies.

Mobile phone insurance

Salespeople might caution you that youll be up for big money if your phone is lost or stolen. But mobile phone insurance is infamous for its "exclusions". For example, a phone might have to be "on your person" when it was lost or stolen, rather than on a desk or in your bag, for a claim to succeed. The excess might be $100 anyway. See if you can get your phone included on your contents insurance instead.

Pet insurance

Some insurance companies now offer pet insurance to cover veterinary fees. Its true that vet bills can be sudden and high, but your monthly premium is also likely to be expensive. Weigh up the cost against the risk of having to shell out for an expensive procedure.

Landlord insurance

If youre a landlord, you can insure not only your physical property but also for a range of other risks involved in renting out a house or unit. These include loss of rental should the building be damaged and become uninhabitable; intentional damage by a tenant or their guests; tenants doing a runner without paying; and legal liability as a result of a tenant being injured.

Check what exclusions from cover might apply to your property. Depending on its location, are you covered for bushfire damage or flood damage? Is it near the sea, where salty air might corrode steel in the structure? If the house is in a high-crime area the insurer might require top-of-the-line security.