How to make a home insurance claim?

If your home is damaged in a fire, flood or other similar event, repairing the damage can be costly. This is where home insurance comes in, but if you’ve never had to make a claim before, you may be wondering how the process works.

How do you make a home insurance claim?

A home insurance claim is a multi-stage process that begins with you contacting your home insurer to inform them about damage to your property, and ideally ends with your claim being approved, and repairs or a rebuild being undertaken on your home. In brief, the steps to making a home insurance claim are as follows:

1. Contact your insurer: If your home is damaged or destroyed, then you will need to contact your insurer to let them know, and get the ball rolling on repair or a rebuild. It is advisable to contact them as soon as possible after your property is damaged.
2. Gather supporting materials and start your claim: When submitting your claim to your insurer, you’ll likely want to include such supporting evidence as photos, videos and receipts and a list of items that have been damaged or destroyed.
3. Wait to hear if your claim is approved: Your insurer may reach out to you for further information regarding your claim, and may send an assessor or adjustor to your property to inspect it. Once they have all the information required to come to a decision, your insurer has 10 business days to approve or deny your claim.
4. Review and sign off on the ‘scope of works’: Once your claim is approved, your insurer will likely provide you with a written report detailing the work that needs to be done to repair or rebuild your home, the materials required, what will and won’t be replaced, and any additional costs to you.
5. Wait for your home to be repaired or rebuilt: Depending on your policy, your insurer may undertake the necessary works themselves, or offer you a cash settlement, or a combination of both.

Why is it important to contact your insurer ASAP?

Contacting your insurance provider, either over the phone or online, is the first step to making a home insurance claim. Generally speaking, it is advisable to get in touch with them as soon as possible after damage occurs to your property, even if you do not know the full extent of the damage yet. There are several key reasons why this is important:

• Your home may need emergency repairs, and your insurer may require that these be undertaken by preferred tradesmen and suppliers.
• If you hold off for too long on reporting damage to your home, you may not be covered for loss or damage caused as a result of the delay.
• Some insurers may have time limits to lodge a home insurance claim, so it’s wise to begin the process as quickly as possible.

Your insurer will be able to talk you through the beginning stages of the claims process when you reach out to them. Generally, you will be able to initiate your claim directly over the phone or online via your insurer’s website.

What information do you need for a home insurance claim?

When making a home insurance claim, generally speaking, you will first need to provide your insurer with a description of the event that took place, and any damage to your home or belongings. You’ll need to gather as much detailed information as possible to present to your insurer as supporting evidence. This information you will typically include:

• Photo and video evidence of damage to your home and belongings.
• A list of lost or damaged items that you want to claim, including receipts or information about when they were purchased, wherever possible.

Your insurer may ask you for further documentation or evidence as it considers your claim, and they may send out an assessor or adjustor to examine damage to your property or belongings.

How long does a home insurance claim take?

The Australian Government’s Moneysmart says that your home insurance provider is required to respond to your claim within 10 business days, either accepting or denying it. If they require any further information from you, they will let you know, and once they have all the information they need, they will have another 10 business days to let you know whether the claim has been approved or denied.

The Insurance Council of Australia’s Code of Practice, a voluntary code of conduct for the insurance industry, sets out a number of guidelines for how claims should be handled. If your claim will take longer than 10 business days to accept or deny, then the code says that they should:

• Tell you any additional information they need to make their decision, making their best endeavours to do this in one request.
• If necessary, appoint a loss assessor or loss adjuster to assess your claim.
• Provide you with an estimate of the likely timeframe in which a decision will be made.

What can you do if you don’t hear back from your home insurer?

If you have not received a decision from your insurer within 10 days of submitting your claim, then you can complain to them and request an internal review. The Australian Financial Complaints Authority (ACFA) has a list of internal dispute resolution tips that you can use with your insurance provider if you need to have a complaint resolved.

If you are unsatisfied with your insurance provider’s internal dispute resolution process or do not have an answer, you can make a complaint directly to ACFA.

Does home insurance cover temporary accommodation?

If your home has been destroyed or damage has made it uninhabitable, then temporary housing or accommodation may be an option from your insurer. Some home insurance policies include this as standard, and some may make it an optional feature of your cover for an extra cost. If you’re in any doubt, it’s advisable to read your policy documents or contact your insurer directly to ensure you are covered for this, and if not, ask them about taking it out.

Generally speaking, your insurance provider will cover the cost of renting a home similar to the one you’re living in while yours is repaired, and if this is not possible, they may put you up in a hotel or Airbnb. If this is the case, and you are unable to store your belongings there due to lack of space, then the cost of commercial storage may also be covered as part of your policy.

Some insurers may cover temporary accommodation up to a certain time limit (for example, 12 or 14 months)  and some may cover it up to a certain dollar amount (for example, 10% or 20% of the sum insured value of your home). Some may set no time limit, and you may be covered to stay in temporary accommodation until such time as your home is rebuilt or repaired and habitable again.

Can I cancel a home insurance claim?

It may be possible to cancel a home insurance claim after you’ve made it, but if you decide to do so, then it is generally advisable to act quickly, before your claim progresses too far.

There are a number of reasons why you might decide to cancel a home insurance claim. For example, it may be that the amount of money you need to claim in repairs is lower than your excess, or that the damage you’re claiming does not turn out to be as extensive as you first thought. Similarly, if the damage turns out to be minor, you may decide on the balance that it is not worth sacrificing your no claim bonus.

Though it is possible to cancel a home insurance claim, it is not guaranteed that you will be able to, so contacting your insurer quickly is advisable. If you wait too long and a decision is made, you may not be able to withdraw your claim.

Can I claim my home insurance on taxes?

As a general rule, you cannot claim your home insurance premiums as an expense on your taxes. That said, according to the Australian Tax Office (ATO), you may be able to claim a portion of them if you operate some or all of your business from home. If you want to explore this as an option, then it is advisable to consult a qualified tax professional to determine if there may be any applicable expenses you can deduct, and how much.

What can I do if my home insurance claim is denied?

According to Australia’s Financial Rights Legal Centre, there are a number of reasons why a home insurer may deny your claim – these include non-disclosure (i.e. if you have withheld any key facts), an exclusion or condition in your policy itself, a cancelled policy or fraud. If your claim is denied, you have a number of possible potions.

Your first step might be to complain to your insurer’s own internal dispute resolution area, and if you are unsuccessful here, make a complaint to the Australian Financial Complaints Authority (ACFA), which provides consumers with free, independent disputes resolution for financial complaints. A further option is to engage a lawyer and if possible, apply to a court or tribunal to have the issue resolved.

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