What Is Not Covered by Home Insurance in Australia?

Home insurance typically does not cover gradual deterioration, general wear and tear, pest or vermin damage, mechanical breakdown, flood in some older or budget policies, intentional damage by an insured person, earth movement, and motor vehicles. Business-related items kept at home are also commonly excluded.

Key Points

Wear and tear and gradual deterioration are not insurable events
Pest, termite, and vermin damage is excluded by virtually all home policies
Mechanical or electrical breakdown is not covered — that's a warranty issue
Vehicles (cars, boats, motorbikes) need separate policies
Business equipment and stock kept at home may require a separate business policy

Is Mould Covered by Home Insurance?

Mould resulting from a sudden and accidental water event — like a burst pipe — may be covered if you report it promptly and the insurer determines it is a consequence of the covered event. Mould from ongoing dampness, condensation, or maintenance failures is excluded as it falls under gradual deterioration. The key distinction is whether the mould was caused by an insured event or by a failure to maintain the property.

What Happens If the Damage Was My Fault?

Accidental damage is covered under most comprehensive home and contents policies, either included as standard or as an optional extra. However, intentional damage by a person insured under the policy is excluded. If a family member deliberately damages the property, that is not an insurable event. Damage caused by a tenant may be covered under landlord insurance, which includes malicious damage as a specific coverage item.

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Written by CoverMy Editorial Team

Last reviewed: 17 March 2026

Category: Home Insurance

What Is Not Covered by Home Insurance in Australia?

Key Points

Is Mould Covered by Home Insurance?

What Happens If the Damage Was My Fault?

Ready to get covered?

Related Questions

What Is Not Covered by Home Insurance in Australia?

Key Points

Is Mould Covered by Home Insurance?

What Happens If the Damage Was My Fault?

Ready to get covered?

Related Questions