Home Insurance Comparison

How to switch home insurance plans

Switching home insurance providers is usually straightforward. Before you do though, consider the following: 

1. Review your current policy: Make a note of your current premiums and the type of policy you have, so you’ll know what to look for. 
2. Get a clear idea of what you need: Has it been a while since you took a good look at your home insurance policy? If so, take stock of your needs, to avoid being underinsured:
3. 1. Use an online calculator to work out the value of your home, and the cost of rebuilding, should it be damaged or destroyed.
   2. Take inventory of your possessions, including any valuable items that you might want specific coverage for.
   3. Consider the risks you face—are you especially worried about the impact of bushfires or floods in your area?
3. Use Canstar’s comparison tables: Quickly compare a wide range of home and contents insurance policies from our Online Partners by using our home insurance comparison tool, helping you narrow down your options by filtering your search to meet your needs.
4. See if your current insurer will offer you a deal: Before switching, it can pay to contact your existing home and contents insurer to let them know you’re thinking of leaving—they may offer you a deal to convince you to stay, and may even help you adjust your current cover to get costs down.
5. Make the switch: If it’s time to change your home insurer, then you can apply for coverage with your new provider, either over the phone or online, following the normal steps of their application process.  
6. Cancel your old insurance: Once your new policy is up and running, you can inform your old provider that you wish to cancel. You may be eligible for a refund of a portion of any premiums you’ve already paid, depending on the policy’s terms and conditions.

Why is it important to compare home insurance?

If your home was damaged or destroyed by a storm or a fire, would you be able to cover the cost of rebuilding and replacing your valuable possessions on your own? The answer to this is almost definitely no, which is why home and contents insurance is so crucial. Not only that, but if you have a mortgage, then home insurance is also likely to be a requirement. 

While it’s not mandatory to have alongside a mortgage, contents insurance can also be important for your peace of mind, so you know that your possessions are covered along with the structure of your home should they be damaged or destroyed. 

There are a number of reasons why it’s worth comparing:

• To find out if you could save on insurance premiums without compromising on the important cover you need
• To find a policy that matches your needs and lifestyle, especially with regards to cover for events like floods
• To avoid the ‘set and forget’ trap of sitting back and allowing your premiums to go up each renewal, rather than comparing to see if there are suitable options for a cheaper price 
• To see if you might be able to save money by bundling different types of insurance you already have

What is the best home insurance in Australia?

There is no one ‘best’ home insurance provider, as the best one for you will be the one with a policy that meets your needs and budget. That said, if you’re comparing home insurance, Canstar’s Home & Contents Insurance Awards recognise the providers that offer outstanding value to customers around Australia. Meanwhile, our annual Most Satisfied Customers Award: Home Insurance recognises the insurer with the most satisfied customers. Our most recent award winners were:

• 2025 Home & Contents Insurance Award: AAMI, Allianz, QBE and Westpac 
• 2025 Home Insurance Award: AAMI, Allianz, QBE and Westpac 
• 2025 Contents Insurance Award: AAMI, Suncorp and Westpac 
• 2025 Most Satisfied Customers Award: Youi Insurance

You can follow the links above to see a full breakdown of state and territory winners for each award.

What’s the difference between home and contents insurance?

Home insurance policies typically cover the cost of repairing damage to the physical structure of your home itself (building insurance), while contents insurance covers the items inside.

Building insurance

This covers the physical structure of your home, like the walls, roof and any built-in fixtures like kitchens and bathrooms, against damage from insured events. It also covers other structures on the property, such as sheds and pools. Building insurance can also provide some coverage you may not have expected, such as:

• Legal liability cover, which can protect you financially if someone injures themselves on your property. 
• Short-term accommodation for both you and your pets.
• Costs to relocate your undamaged furniture if your home needs extensive repair.
• Debris removal, if an insured event created the debris.

Contents insurance

This covers your belongings and the items in your house against theft or damage. You can purchase insurance to cover all of your contents, and specific single-item insurance can be purchased for high-value items like jewellery.

Combined home and contents cover

Insurers will often bundle up home and contents insurance into the one package, offering comprehensive cover. This combined cover will often be sold with a discount to encourage customers to take it out. Bundling may not always be the cheapest option, though, so it pays to compare just in case separate policies work out to be cheaper for you.  

Landlord insurance

Landlord insurance is a specific type of home insurance that covers owners of rental properties from financial losses. Landlord insurance can provide a range of cover options, from building and contents cover through to tenancy-specific cover, that protects financially against damage done by tenants, and loss of rent. It also provides legal liability cover.

How much does home insurance cost?

According to January 2026 figures from Canstar research, the average annual cost of home and contents insurance around Australia is: 

Source: www.canstar.com.au – 05/01/2026. Premiums based on quotes obtained for Canstar’s Home and Contents Insurance Awards and Star Ratings (August 2025), for a range of addresses, property assumptions and building sum insured amounts. Premiums based on building sum insured amounts between $300,000 and $1,500,000 and a contents sum insured of $50,000. *North QLD is defined as the portion of Queensland north of, but not including, Rockhampton.

How much have prices increased over the last 12 months?

According to the same January 2026 figures from Canstar research, average home and contents insurance costs rose by $343 (14%) in 2025 compared to national averages the previous year. Home building and contents insurance both rose by $246 (11%) and $91 (21%) respectively.

How much could you save by comparing?

According to the above January 2026 figures from Canstar research, the average home and contents insurance policy in Australia costs $2,795 annually, while the average 5-star rated policy from our database costs $2,029. This means you could potentially save up to $766 by comparing and switching.

How to choose home insurance

Insurers are required to provide consumers with a key fact sheet, outlining everything that’s covered in a policy, and the government requires these to be formatted in the same way, so consumers can compare policies like for like. Nonetheless, with the sheer amount of information you’ll need to absorb, comparing policies can be overwhelming, so here are some key considerations: 

The extent of the coverage

When comparing and getting quotes for home insurance, it’s important to understand exactly what’s covered. Your sum insured amount is the maximum payout that you’ll be able to get if your home or contents are damaged or destroyed by an insured event, so make sure that this suits your needs and you won’t be left with a shortfall should you need to claim. 

Insured events and sub-limits 

Make sure a policy covers for all the insured events you require, particularly in regards to storms and flooding, to make sure you’re actually covered for what you need. Similarly, some policies will have sub-limits – maximum amounts that can be paid out in certain categories. Check to make sure you know what these are and how they apply, so you’re not caught out.  

Excess vs premiums

When purchasing insurance, it pays to consider the trade-off between a higher excess and lower premiums. Opting for a higher excess can spare you from financial pain in the short term, but can mean you need to pay more upfront if you need to make a claim. When comparing, it can pay to find a policy that has an excess you’re comfortable with, coupled with premiums that are affordable for you.

Optional extras and add-ons

Home insurance policies typically offer a range of optional extras – depending on the provider, this can mean cover for accidental damage, portable contents cover (for damages to your items when you’re away from home) and motor burnout (for the repair or replacement of motors in built-in fixtures like air-conditioning units and garage doors). Some providers even sell flood insurance as an optional add-on feature. Check and see if your insurer offers these, and if you need them, or likewise, whether you’d rather not include them in your cover. 

Claim limits, conditions and waiting periods

Take note of any requirements that a policy may have in regards to security or flood mitigation measures that your home might need. Similarly, consider any exclusions, waiting periods you’ll need to serve, and limits, especially regarding the length of time you’ll be able to spend in temporary accommodation if your home requires extensive repairs or rebuilding.

The claims experience

If you’re considering whether to sign up with a home insurer, it can pay to research their reputation online. Look for reviews and feedback about the quality of their customer service and complaint resolution and the ease of the claims experience. 

Discounts and bundling options

You may be able to snag a discount if your chosen insurer offers a sign-up bonus, or if you can bundle up your home and car insurance with a mult-policy discount. A number of providers will also offer a discount when you purchase a policy online. Just be aware that, while upfront discounts are appealing, it’s important to carefully consider whether an insurance product suits your overall needs and budget.

What does home insurance cover?

When it comes to home insurance, it’s important to understand what you’re covered for, as well as the extent of your coverage, and how much you might expect to be paid out in the event you need to make a claim. 

Common insured events

An insured event is a specific type of incident covered by your insurance policy, in which your home or contents could be damaged or destroyed. The most common kinds of insured events are fire, storms, theft, lightning, earthquakes and malicious damage. Check with your insurer to find out exactly what events you’re covered for, particularly if you live in an area prone to natural disasters.

Sum insured cover vs total replacement 

A sum insured policy will cover your home and contents up to a specified amount, agreed upon by you and your insurer. Total replacement cover, on the other hand, will allow your home to be rebuilt exactly as it was, with no specific sum-insured limit. Total replacement cover, while it may offer greater peace of mind, tends to be more expensive, and only a handful of insurers in Australia offer it.

How do home insurers settle claims?

If your property is damaged by an insured event and you successfully make a claim on your home insurance, your insurance company may send out an assessor to gather evidence and determine the scope of works needed, and will then determine their preferred method of settling the claim. There are three main ways in they might do this:

1. Replace or repair a damaged item.
2. Repair or rebuild your damaged property.
3. Offer you an insurance cash settlement to conduct repairs yourself.

The Australian Financial Complaints Authority (ACFA) cautions around cash settlements, saying that if you accept one, repairs to the home will be your responsibility, and the amount may not be sufficient to cover the repairs needed. ACFA stresses that cash settlement offers must be “fair in the circumstances” and must be sufficient for a policyholder to arrange repairs. You are not obligated to accept a cash settlement if your insurance provider offers you one.

How much home insurance cover do you need?

When choosing home insurance, it’s important to make sure that your ‘sum insured’ is sufficient to cover everything you need. Your sum insured is the amount listed on your policy that is the maximum that your insurer will pay for any one insured event. What does this actually mean?

• Your building sum insured should be enough to cover the cost of rebuilding your entire home, including sheds, patios and driveways. 
• Your contents sum insured should be enough to cover the full replacement value of your belongings.

Insider tip: Calculating how much home insurance you need
Online calculators can help you estimate the cost to rebuild your home or replace your belongings if they were to be damaged or destroyed in an insured event.

How do you avoid underinsurance?

Underinsurance occurs when you don’t have sufficient insurance coverage to repair or rebuild your home, or replace your belongings, after an event like a fire. It’s concerningly common—in fact, insurer AAMI estimates that 50% of Australians may be underinsured. To avoid this, you can: 

• Make sure your home insurance policy is up to date, and updated it to reflect any new additions you’ve made to your home or renovations you’ve undertaken  
• Make sure your sum insured reflects the cost of rebuilding your home and replacing your possessions, as these may have gone up since you took your policy out
• Check if your policy has adequate cover for fires, storms and flooding, and any other events that are a priority for you 
• Consider single-item insurance for any especially valuable items

It’s important to note that some insurance policies in Australia have what’s known as a coinsurance or averaging clause, that can apply if your home is damaged or destroyed and you are underinsured. If your property is underinsured below a certain threshold, often 80% - 90%, the payout for any claims you make will also be proportionally reduced. For this reason, it’s important to update your sum insured amount regularly, to make sure you’re not caught out.

On the other hand, some insurers offer protection against underinsurance in the form of full rebuild cost protection, sometimes known as a ‘rebuild safety net’. This is an optional benefit that can be added to some insurance policies, that can be used in the event that your house is destroyed by an insured event, and the rebuild costs are more than your sum insured amount.

Insider tip: A safety net can make all the difference
If the cost of rebuilding your home rises unexpectedly due to increased labour and materials costs, a rebuild safety net can provide additional cover towards repair and replacement of your buildings. Some insurers offer up to 30% extra as a safety net amount. 

What’s not covered by home insurance?

To avoid any unwelcome surprises, it pays to be aware of common exclusions—specified events or scenarios that are not covered. While these vary by provider, common ones tend to include: 

• Leaving your home vacant for longer than a set period of time or failing to adequately secure it 
• Normal wear and tear and gradual deterioration  
• Damage from pets and pests like rats and mice
• Business activities, including using your home as a holiday rental
• Home swapping
• Renovations and DIY projects
• Tree damage
• Gradual deterioration
• Defective workmanship 
• Intentional or criminal acts
• Confiscation by authorities due to illegal activity
• Damage that occurs during your exclusion periods

Insider tip: Get on top of pesky maintenance issues
Insurance covers sudden, unexpected events, like damage from a storm or fire. It does not cover damage caused by ongoing maintenance issues. If you’ve been putting off fixing a leak, then it’s important to put that at the top of the to-do list, because any issues caused by it will not be covered.  

How does contents insurance work?

Contents insurance protects you financially against loss or damage to your belongings—items you have in your home that are not part of its structure. There are two main types of contents insurance:

• Cover for the value of your belongings: Some policies may only cover the value of your belongings, which can depreciate over time. This means in the event of a claimable incident, the money you receive from the insurer to replace or repair your items may not adequately cover your loss.
• New-for-old replacement: New-for-old policies mean your belongings are covered for the full cost of replacing them with new items, sometimes at a higher price than what they were valued at originally. The premium for this type of insurance will generally be more expensive than the value-only option.

As new-for-old insurance offers more comprehensive cover, it tends to be more expensive. 

The majority of contents insurance policies will provide protection for your possessions if they are lost through a defined event, which, depending on the policy, may include occurrences such as burglary, fire, storm or vandalism.

Some contents insurance policies will offer cover for accidental damage as standard, while others may require you to take this cover out as an optional extra. This is also the case with motor burnout cover, which protects against the cost of repairing burned-out motors in goods like refrigerators. Depending on the policy, contents insurance can also cover for food or medicine that goes bad if your fridge is without power thanks to events like a blackout or breakdown.

Contents insurance policies also tend to have limits for what you can claim per item, so if you have any specific valuable items that you want coverage for, it may be wise to list them on your policy as specified items, so you can claim their full value if they are lost or damaged. Bear in mind that this will likely add to the overall cost of your premiums. 

Some insurers will offer portable contents cover as standard, and some will offer it as an optional extra. This insurance covers items that are designed to leave your home, like laptops and smartphones, when you are out and about. Once again, you can list certain items specifically on your policy if you want to be covered for their full value.

Insider tip: Keep an inventory of your belongings
Creating an inventory of your possessions, ideally with photos and videos, can help determine how much contents coverage you need. This documentation may also help simplify the claims process.

What is single item insurance?

Single item insurance is a type of home insurance that allows you to pick specific items in your home that you want cover for. If you have any particularly valuable items, like a treasured item of jewellery or an expensive new laptop, single item insurance can give you added protection.

Generally speaking, contents insurance has sub-limits, which are maximum amounts that can be paid out in particular categories. Say for example that your contents insurance policy has a limit of $1,000 for individual, unlisted items of jewellery and $5,000 as the total limit for all jewellery.

If you have a particularly valuable item of jewellery that is worth more than this, then taking out single item insurance for it could provide you with peace of mind. Bear in mind, though, that this will likely increase your premiums.

What does contents insurance cover?

Contents insurance covers items at your address. Generally speaking, it covers household items that are used for domestic purposes, and are not permanently attached to the building. This can include:

• Furniture, manchester, kitchenware, clothing, shoes and books.
• Electronics like laptops, home computers and tablets.
• Mobile phones.
• Electrical goods and appliances not housed in a cabinet.
• Pot plants and their pots.
• Jewellery and watches.
• Medical equipment and aids.

The above list is not exhaustive, so before taking out a contents insurance policy, it's important to read the PDS carefully to find out exactly what contents covered, to ensure the policy meets your particular needs.

What's not covered by contents insurance?

Contents insurance does not cover every item in your home. Some common contents insurance exclusions include:

• Common property, meaning items that are jointly owned in a strata scheme
• Any pets or animals.
• Plants, trees, shrubs or hedges in the ground.
• Items that are or were stock or samples related to any business activities.
• Motor vehicles, motorbikes or any vehicles other than those that might specifically be mentioned in your policy.
• Contents in a vehicle designed for the temporary accommodation of people or animals, such as a caravan or motor home or a horse float.
• Unregistered firearms.
• Uncut gems, unset gems, gold or silver nuggets, bullion or ingots.

The above list is also not exhaustive, so before taking out a contents insurance policy, it's important to read the PDS to find out exactly what contents are not covered, to avoid any surprises.

How are home insurance premiums calculated?

When calculating your home insurance premiums, an insurance company will generally assess the level of risk faced by your property, and consider the value of your home and its contents, but there are a number of key factors that can go into determining how much you pay, such as:

• Your property’s location, and its proximity to natural disaster risks and crime
• The sum insured, or the cost to rebuild your home and replace its contents
• The age of your house, its size, construction materials and features
• Your claims history
• Your age and that of the residents – for example, a retired person living in the home may be seen to reduce risk
• The excess you choose

Why do home insurance premiums increase? 

Home insurance premiums tend to increase because of market forces and rising costs. For example, the cost of labour and materials increases each year, which means that repairing damage to a home costs more. Likewise, the prevalence of severe weather events means that insurers are paying out an increasing size and number of claims, which puts prices up across the board. Increasing your sum insured amount, reducing your excess or making a claim can also cause your home insurance premiums to rise.

What are your excess options for home insurance? 

Your excess is an amount of money you agree to contribute to the cost of any home insurance claim you make, before your insurer begins to pay out. An excess is paid up front, and the amount of your excess is determined when you take out your policy. The higher the excess you choose, the lower your premiums will be, but the more you’ll have to pay out in the event that you make a claim. 

The amount you choose for your excess can vary. Say you opt for a $500 excess and you need to make a claim that’s worth $5,000 – you would pay the first $500 upfront, and then your insurer would pay the remaining $4,500.

How do you renew your home and contents insurance?

Home and contents insurance is often considered a “set and forget” expense. Once you have a policy set up, your insurer will send you a renewal notice each year noting any changes in costs, and you’ll continue paying. If you have your home insurance premiums set up to direct debit from your account, then your provider will continue debiting them as before. 

As a consumer, it’s important to be wary of this – if your home and contents insurance auto-renews each year, then your insurer could be hiking your premiums and taking you for a ride without you realising. Equally concerning, though, is if you don’t review your insurance each year, you could end up being underinsured and not having the cover you need, should your property be damaged or destroyed. 

For this reason, when renewal time comes around, it can pay to review your coverage, both in terms of the cost and of how much you’re covered for, to make sure you’re still getting what you need. If you’re not, then it could be worth your while to compare your options and see if there’s a better deal out there for you.

Looking for cheap home insurance?

When it comes to home insurance, the cheapest option may not always be the best for you – it’s important to remember that home insurance exists to cover you from financial loss in the event that your home or belongings are damaged or destroyed. A cheaper policy that excludes coverage for flooding, for example, may be lighter on the wallet month to month, but could cost you in the long run if you find out you’re not covered for what you thought you were. If you feel you’re paying too much for home insurance, there are still ways to save without compromising on important cover.

Tips to reduce home insurance premiums 

If you’re looking to save on home insurance premiums, there are several strategies that could work for you, both by reviewing your policy and leveraging discounts your insurer may offer:

• Shop around and compare quotes: Canstar research found that, at the time of writing, you could potentially save up to $766 by switching to a 5-star rated policy. 
• Buy online: A number of insurers offer discounts to customers who purchase a policy online rather than over the phone or in person.
• Increase your excess: A higher excess will generally mean lower premiums, although you’ll have to pay more upfront if you make a claim. 
• Make sure your home and contents are valued accurately: While underinsurance is a concern in Australia, it’s also worthwhile to review your policy to make sure you’re not overpaying for things you don’t actually need. For example, if you are paying for motor burnout insurance for your appliances, but they are all new and under manufacturer's warranty, then this could be a redundant expense. 
• Consider paying your premiums annually: Some insurers may charge more to policyholders who pay their premiums month to month, so if you are in a position to pay as an annual lump sum, you could find that you save. 
• Maintain your no claim bonus: Paying out of pocket for small repairs can help maintain your no-claim bonus and stop your premiums from going up, until such time as you need to make a larger home insurance claim. 
• Keep an eye on sign-up offers: Home insurers sometimes offer discounts as incentives for new members to join, but there’s nothing stopping you from asking if they might extend a similar perk to you to reward your loyalty as a customer.

Insider tip: Home security systems won't necessarily save you money
While security cameras, smart doorbells and motion sensors can give you peace of mind and assist with collecting evidence for the claims process, they won’t necessarily reduce your premiums. Home insurer Youi says that more sophisticated alarm systems that are connected to a 24/7 security monitoring center may be considered when calculating premiums.

When should you get home insurance?

Many banks and lenders will make home insurance a condition of your home loan before settlement can occur, meaning you can’t get your funds unless you have it. As for the question of when you as a buyer are financially responsible for covering damage to the property, the answer differs state by state.  

New South Wales and Victoria

You are responsible for damage to the property from the settlement date. 

The ACT, South Australia and Tasmania

You are responsible for damage to the property during the settlement period.

Queensland

You are responsible for damage to the property from 5pm on the next business day after contracts are signed and exchanged. 

The NT and Western Australia

You are responsible for damage to the property from the date you are entitled to possession of the property, or when the full purchase price is paid at settlement, whichever comes first.

Why is home and contents insurance important?

Home and contents insurance is important for your own peace of mind, but also crucially important to cover the costs you’ll face should the unexpected occur. 

Say, for example, that your home and possessions were damaged or destroyed by a fire, and you did not have insurance. You would be responsible for paying the full cost of repairing or replacing your home and belongings, and continuing your regular repayments to your bank or lender, if your property is mortgaged.  

This situation would be financially untenable for almost all of us, and illustrates why it’s vitally important to have home insurance.

Do you need home insurance for an apartment? 

A stand-alone home is a whole property that you own outright, whereas a strata property is a unit within a complex that you own individually. If you own an apartment under a strata title, then you may not need to purchase home insurance, as your body corporate may be responsible for insuring the building – it is advisable to check with them directly to see if this is the case. If you own an apartment, you will still need to purchase your own contents insurance to protect your belongings.

Insider tip: Don’t assume work from home is covered
If you work from home, a standard home and contents insurance policy may not provide all the protection you need. For example, if your business requires you to keep stock at your home, or if a client is injured while visiting your home for business reasons, you may not be covered. Be sure to read the wording of your policy to find out what’s covered, and if necessary, consider taking out separate insurance for your business.  

Does home insurance cover natural disasters? 

Home insurance in Australia generally provides protection against loss or damage events such as fires, storms and earthquakes, as well as malicious damage and vandalism. Some insurance providers may include this kind of coverage as standard, but others may sell it as an optional extra, especially if you live in an area that is deemed to be at high risk of certain natural disasters. 

When it comes to cover for natural disasters, payouts can be expensive for insurance providers, and they tend to be strict about what they do and do not cover, and the circumstances in which they will pay out. It’s important to understand that:

• While insurance policies commonly offer coverage for damage caused by storms, damage caused by floods can be a specific type of cover that you’ll need to purchase as an optional extra.
• Insurers may reduce or even deny your claim if they find out that your property has not been sufficiently maintained, or if you have not taken care – for example, leaving your windows open as a rainstorm approaches, leading to your belongings being damaged. 

How does flood cover work with home insurance?

As an Aussie homeowner, it can be especially important for your peace of mind to know that you’re covered for flood damage, but this area of home insurance can be quite complex.

Does all home insurance come with flood cover?

It’s important to know that flood cover does not necessarily come standard with home insurance in Australia. While some providers sell it as part of standard home insurance coverage, others may sell it as an optional add-on, and others may exclude it entirely. Some providers will also place limits on the amount you can claim for flood cover, so make sure you read the product documentation for any insurance policy carefully. 

What is a ‘flood’ and are you covered?

The Insurance Council of Australia says that the standard definition of a flood in Australia is “the covering of normally dry land by water that has escaped or been released from the normal confines of any lake, or any river, creek or other natural watercourse, whether or not altered or modified, or any reservoir, canal, or dam.” It’s important to note that many insurance providers in Australia do not cover this type of flooding as standard, and you will need to purchase cover as an add-on to your policy. It’s also important to note that none of the providers on Canstar’s database offer cover for flooding due to rising seawater or tidal flooding. 

What about storms and cyclones?

Generally speaking, home insurance in Australia will cover for damage caused by strong winds, lightning strikes and power surges, earth movement, fallen trees, the escape of rainwater from pipes, drains and gutters, and damage caused by surface rainwater. It’s important to note, though, that while your insurance policy may cover for these things, you may not be covered for ‘flooding’, and you may need to purchase this as an extra on top of your insurance policy. 

What does flood insurance cover?

In terms of home insurance, flood insurance covers you for structural damage to your house, costs associated with demolition and removal of debris, damage to fixtures and permanent structures, repair and replacement of electrical systems and temporary accommodation, if necessary. In terms of contents insurance, flood insurance covers for damage to rugs and carpets, electronics, clothing, linens and other personal items.

How do waiting periods work for flood cover?

In Australia, insurance providers will typically impose a 48-72 hour waiting period for flood cover on your policy, before your coverage kicks in and you can claim for damage. 

What if you can’t get flood cover?

If insurance providers consider your property too risky and you cannot find one that will offer you flood cover, then you will face a significant financial burden should your home be damaged or destroyed by a flood. If you are in this situation, then you may need to consider applying for a community recovery grant via your state or territory government.

How does bushfire cover work with home insurance?

Bushfire season is a critical time to make sure your home insurance is up to date, and while home and contents insurance has cover for bushfires, there are some important precautions to take. Insurers expect reasonable steps to protect your home, like clearing gutters, removing flammable debris, and locking doors and windows. Failure to take precautions could affect your claim. 

Likewise, it’s important to understand what’s excluded from your cover–while all insurers in the Canstar database cover bushfire damage, 16% won’t cover the damage caused by heat and soot caused by a fire. When comparing coverage, it’s therefore crucial to read the fine print, to make sure your policy covers everything you need.

Making a home insurance claim

Should you need to make a home insurance claim, it’s generally possible to do this either over the phone, or via your insurer's online portal. It’s usually best to tell your insurer of any damage immediately, and to provide as many details as possible of the incident.

You will generally be required to provide proof of the damage, so it’s important to document this as soon as possible with photos and videos. If possible, it’s also worth documenting your property and possessions with photos when you take out your policy, in order to make it easier to prove damage down the track. 

If your belongings are important to you, then it pays to keep an inventory or checklist, especially of items that are treasured or that you would want to replace as a priority in the event of loss or damage. Some insurance companies have mobile apps that allow you to upload photos directly from your smartphone, as well as update your claim straight away.

You may also need to provide evidence of ownership and value of any particular items that you’re making a claim on. For example, this could include receipts, valuations, credit card statements and photos.

What if your claim is denied?

If your home insurance claim is denied or you’re unsatisfied with the outcome, it’s important to understand exactly why your insurer has chosen to deny it. 

Common reasons for your claim to be denied might be that your policy excludes the event or damage you’re claiming for, that you failed to report the claim within the timeframe outlined by your policy, or that you provided false or inaccurate information when making your claim. 

If you feel that your claim has been denied unfairly, you are able to contact your insurer and ask for it to be resolved by their internal dispute resolution process. If you are unhappy with the outcome of this, you can escalate your claim to an external body such as the Australian Financial Complaints Authority (ACFA), and if you are still unsatisfied with the outcome, you may consider obtaining advice from a solicitor. 

What can void your home insurance?

Home insurance in Australia can be voided by:

1. Failing to pay your premiums on time
2. Leaving your home unoccupied for too long a period 
3. Failing to maintain your property
4. Failing to undertake necessary repairs and maintenance 
5. Failing to keep proof of ownership of valuable items 
6. Failing to lock your home
7. Failing to contact police in the event of a break-in
8. Faulty design or poor workmanship on your house
9. Falsifying policy details

Insider tip: Make sure your valuable items are covered
Some insurers will place a limit on the maximum payout for certain contents–for example, your payout for ‘works of art’ or ‘jewellery and watches’ may be capped at $2,500. If you have valuable items, like an art collection or some treasured watches, that you want covered, then make sure you aren’t caught short. Many insurers will offer valuable items cover as an add-on to contents insurance, although for certain high-value items, your insurer may require a valuation.

How does landlord insurance work?

Landlord insurance is a type of home insurance that covers your investment properties–it functions in much the same way as standard home and contents insurance, but can have extra components. Depending on your policy, landlord insurance can have:

• Tenancy cover: Protects you financially against theft or malicious damages by tenants or their guests, loss of rent, and legal expenses required to evict a tenant. 
• Building cover: Protects you financially against damages to the building caused by insured events, and also provides legal liability cover.
• Contents cover: Protects financially against damages to furniture, carpets, curtains and other contents, potentially useful if you are renting out a furnished home.  

Landlord insurance does not cover your tenants’ contents – for this, they will need their own contents insurance policy. It also does not cover for standard wear and tear, tenant repairs that result in damage, building defects and damage caused by animals and vermin.