Updated April 2026

Compare Home Insurance in Australia

Compare home insurance estimates from Australia's leading providers side-by-side. Find the right building and contents cover for your home - including natural disaster protection. 100% free.

Last reviewed: 6 April 2026
Highest Rated Featured Provider

NRMA Insurance

4 / 5

NRMA Insurance is one of Australia's most recognised home insurers, particularly strong in NSW and ACT. IAG-owned with comprehensive natural disaster cover and flexible policy options - click below to get a quote and see for yourself.

$1,800-$3,500
Avg. annual premium (standard home)
~78%
Of Australian homes have building insurance
Sum Insured
Most AU policies require you to set a sum insured
Not Compulsory
But mortgage lenders require it

What is Home Insurance?

A guide to how home insurance works in Australia, including building and contents cover.

Home insurance covers the cost of repairing or rebuilding your home if it is damaged or destroyed by an insured event - such as fire, storm, flood, bushfire, cyclone, or accidental damage. Building insurance protects the physical structure of your home, including walls, roof, foundations, fixed floor coverings, and permanent fixtures like kitchens and bathrooms.

Unlike New Zealand, Australia does not have a government natural disaster insurance scheme. There is no equivalent to NZ's EQC (Toka Tu Ake). All home insurance cover in Australia is provided entirely by private insurers. This means your policy is the sole source of protection for your home against natural disasters including bushfire, storm, cyclone, flood, and earthquake.

Australian home insurance is typically sold as either building insurance (the structure), contents insurance (your belongings), or a combined building and contents policy. Most homeowners with a mortgage are required by their lender to hold building insurance at minimum. Combined policies are the most popular choice and usually offer better value than buying building and contents separately.

Home insurance does not cover everything. Common exclusions include gradual damage, wear and tear, poor maintenance, and - depending on your policy - flood. The shift towards including flood cover as standard has accelerated since the 2022 reforms, but it is essential to check your Product Disclosure Statement (PDS) carefully.

If you have a mortgage, your lender will almost certainly require you to have building insurance as a condition of the loan. Even without a mortgage, your home is likely your most valuable asset, and the cost of rebuilding without insurance would be financially devastating for most Australian households. Approximately 78% of Australian homes currently have building insurance.

Key point: Most Australian home insurance policies are sum insured, meaning you set the maximum rebuild amount when you take out the policy. If your home is destroyed and the rebuild costs more than your sum insured, you pay the difference. Use a rebuild cost calculator (like the Cordell/CoreLogic Sum Sure calculator) to set your sum insured accurately, and review it every year to account for rising building costs. Underinsurance is one of the biggest risks facing Australian homeowners.

Types of Home Insurance in Australia

The main types of home insurance cover available in Australia.

Building Only

From ~$1,200-$2,500/yr

Covers the physical structure of your home only - walls, roof, foundations, fixed fixtures, garages, fences, and other permanent structures. Does not cover your personal belongings. Meets mortgage lender requirements.

Fire, lightning, explosion
Storm, cyclone, hail
Flood (most policies - check PDS)
Bushfire
Accidental damage to structure
Personal belongings
Meets lender requirements

Contents Only

From ~$400-$1,200/yr

Covers your personal belongings - furniture, electronics, clothing, appliances - against theft, fire, storm, and other insured events. Ideal for renters or apartment owners where the body corporate covers the building.

Furniture & appliances
Electronics & valuables
Clothing & personal items
Theft & burglary
Fire, storm, flood damage
Building structure
Portable contents option

Top Australian Home Insurance Providers

In-depth look at Australia's most popular home insurers.

AAMI

One of Australia's most recognised insurance brands. IAG-owned with strong building and contents bundles, natural disaster cover, and a straightforward claims process.

Building & contents bundles
Natural disaster cover
Temporary accommodation
New for old replacement
Multi-policy discount
24/7 claims line
Allianz

Global insurer with a strong Australian presence. Comprehensive home cover with flood cover included as standard and flexible excess options.

Comprehensive home cover
Flood cover included
Flexible excess options
Accidental damage cover
Multi-policy discount
Online management
Budget Direct

Award-winning online insurer offering competitive pricing with flexible excess options. Strong digital experience and consistently high customer satisfaction ratings.

Competitive online pricing
Flexible excess options
Building & contents bundles
Accidental damage cover
Online claims lodgement
No lock-in contracts
GIO

Suncorp-owned insurer with a strong presence in NSW. Comprehensive home insurance with natural disaster cover and flexible policy options.

Comprehensive cover
Strong NSW presence
Natural disaster cover
Temporary accommodation
Multi-policy discount
24/7 claims line
NRMA Insurance

One of Australia's most trusted insurance brands, particularly strong in NSW and ACT. IAG-owned with comprehensive building and contents cover and excellent claims handling.

Strong in NSW & ACT
Comprehensive cover
Flood cover included
Temporary accommodation
Multi-policy discount
Online management
Suncorp

Queensland-based major insurer with comprehensive natural disaster cover. Strong expertise in cyclone and flood-prone areas given their QLD heritage.

QLD-based expertise
Natural disaster cover
Cyclone & flood cover
Temporary accommodation
Multi-policy discount
24/7 claims line
QBE

Major Australian insurer primarily distributed through insurance brokers. Comprehensive home cover with strong natural disaster protection and flexible policy options.

Broker-distributed
Comprehensive cover
Natural disaster cover
Flexible excess options
Temporary accommodation
Multi-policy discount
CGU

IAG-owned insurer available through brokers and partners. Strong comprehensive home cover with broad natural disaster protection.

Available through brokers
Comprehensive cover
Natural disaster cover
Accidental damage cover
Temporary accommodation
Multi-policy discount
RACQ

Queensland's member-owned motoring and insurance organisation. Particularly strong for QLD homeowners with competitive pricing and local expertise in cyclone and flood zones.

QLD member-owned
Cyclone & flood expertise
Building & contents bundles
Multi-policy discount
Local QLD claims support
Competitive member pricing
RAC Insurance

Western Australia's member-owned motoring and insurance club. Strong home insurance offering for WA homeowners with competitive member pricing and local expertise.

WA member-owned
Building & contents bundles
Natural disaster cover
Multi-policy discount
Local WA claims support
Competitive member pricing
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How to Choose the Right Home Insurance

Key factors to consider when comparing home insurance policies in Australia.

🏠 Standard Family Home

  • A combined building and contents policy is the most common and usually best-value choice
  • Use the Cordell/CoreLogic Sum Sure calculator to estimate your rebuild cost accurately
  • Check whether flood cover is included as standard or needs to be added
  • Check whether the policy includes temporary accommodation if your home is uninhabitable

📈 High-Risk Area Home

  • If you are in a bushfire (BAL-rated), cyclone, or flood zone, check cover limits and exclusions carefully
  • North Queensland homeowners may face premiums of $5,000 - $10,000+ due to cyclone risk
  • Consider higher excesses to reduce premiums, but ensure you can afford the excess if you need to claim
  • Some insurers specialise in high-risk areas - compare multiple providers

💰 Mortgage Holders

  • Your lender will require building insurance as a loan condition
  • Your sum insured must cover the full rebuild cost, not just the loan balance
  • The lender's interest is noted on your policy but you choose the insurer
  • Shop around - you are not required to use your lender's preferred insurer

Sum insured amount - make sure it covers the full cost to demolish and rebuild your home, including professional fees, council approvals, and building code compliance.
Flood cover - check whether flood is included as standard or optional. Understand how your insurer defines 'flood' versus 'storm water'. This is one of the most common gaps in Australian home insurance.
Bushfire and cyclone cover - if you are in a high-risk area, check for specific exclusions, sub-limits, or higher excesses for these events.
Excess amounts - the standard excess ($500 - $1,000) plus any separate excesses for natural disaster, flood, or specific events.
What's excluded - read the PDS carefully. Common gaps include gradual damage, poor maintenance, actions of the sea, and termite damage.
Temporary accommodation - if your home is uninhabitable, how long and how much will the insurer cover for alternative living arrangements?
Claims process - check CHOICE reviews for customer satisfaction with claims handling.

Australian Home Insurance Providers Compared

A side-by-side comparison of major home insurance providers in Australia.

Provider Cover Type Online Quotes Best For
AAMI Comprehensive All-rounder
Allianz Comprehensive Flood cover included
Budget Direct Comprehensive Competitive pricing
GIO Comprehensive NSW focus
NRMA Insurance Comprehensive NSW & ACT
Suncorp Comprehensive QLD expertise
QBE Comprehensive Broker only Via broker
CGU Comprehensive Broker only Via broker
RACQ Comprehensive QLD members
RAC Insurance Comprehensive WA members

Disclaimer: Features and cover options may change. Always verify details directly with your insurer before purchasing. If you've noticed something incorrect, please let us know.

What Does Home Insurance Cover?

A detailed breakdown of what's typically included in Australian home insurance policies.

Feature Building & Contents Building Only Contents Only
Fire, lightning, explosion Covered Covered Covered
Storm, hail, wind damage Covered Covered Covered
Bushfire Covered Covered Covered
Cyclone Covered Covered Covered
Flood Check PDS - varies Check PDS - varies Check PDS - varies
Earthquake Usually covered Usually covered Usually covered
Accidental damage Covered Structure only Contents only
Burst pipes & water damage Covered Covered Covered
Theft & burglary Covered Damage to structure Stolen items
Vandalism & malicious damage Covered Covered Covered
Temporary accommodation Included Included
Outbuildings (garage, shed) Often included Often included
Glass & sanitary fixtures Covered Covered

⚡ Flood Cover - Know Your Policy

Flood cover is one of the most important and most misunderstood aspects of Australian home insurance. Following catastrophic flooding events and the 2022 reforms, more insurers now include flood cover as standard - but not all do, and definitions of 'flood' vary between insurers. Some policies distinguish between storm water runoff (usually covered) and riverine flooding (may be excluded or optional). Always read the flood definition in your PDS carefully, particularly if you live near a waterway or in a known flood zone. The Insurance Council of Australia provides resources to help you understand flood risk in your area.

Common Home Insurance Exclusions

Understanding what is not covered is just as important as knowing what is.

💧 Gradual Damage

Damage that happens slowly over time - such as rot, rust, mould, rising damp, or deterioration from lack of maintenance - is generally not covered. Insurers expect you to maintain your home in good condition. Unlike some NZ policies, Australian home insurance rarely offers a gradual damage benefit.

🔧 Wear and Tear

Normal ageing of your home is not covered. If your roof fails because it is 40 years old and has never been maintained, that is wear and tear, not an insurable event. Regular maintenance is both a policy requirement and protects your investment.

🌊 Flood (in some policies)

While flood cover is increasingly included as standard, some policies still exclude or limit flood cover, particularly for properties in high-risk flood zones. The definition of 'flood' versus 'storm water damage' varies between insurers and is a common source of claim disputes. Always check the flood section of your PDS carefully.

🚧 Poor Workmanship

If your home was built or renovated using substandard materials or methods, resulting damage may not be covered. This includes defective design, faulty construction, and non-compliant building work. Check National Construction Code requirements if you are building or renovating.

🚫 Deliberate Damage

Any damage you cause intentionally to your own home is not covered. This includes damage caused by tenants acting deliberately (though some landlord-specific policies may cover this). Arson by the policyholder voids the policy entirely.

🏭 Unoccupied Homes

If your home is left unoccupied for an extended period (typically 60 days or more), your cover may be restricted or voided. If you plan to leave your home empty - for example during extended travel or renovation - notify your insurer in advance.

🌳 Termites & Vermin

Damage caused by termites, insects, rodents, or other vermin is almost universally excluded from Australian home insurance. Termite damage is a significant risk across much of Australia - regular pest inspections and preventative treatment are your responsibility as a homeowner.

🌊 Actions of the Sea

Damage caused by the action of the sea, including coastal erosion, tidal waves (unless caused by earthquake), and normal high tides, is typically excluded. This is particularly relevant for coastal properties. Sea level rise and coastal erosion are growing concerns for Australian homeowners in beachside areas.

What Affects Your Home Insurance Premium?

Understanding these factors can help you find a better deal.

📍

Location

The single biggest factor. North Queensland attracts much higher premiums due to cyclone risk. Bushfire-prone areas, flood zones, coastal properties, and areas with high crime rates all cost more to insure. Your postcode heavily influences your premium.

💰

Sum Insured Amount

The higher your sum insured, the more you pay. Make sure it accurately reflects rebuild cost - not too high (overpaying) and not too low (underinsured). The Cordell/CoreLogic calculator can help.

🏠

Construction Type

Timber frame, double brick, weatherboard, concrete, or steel? Roof material (tile, colorbond, concrete)? Homes built with fire-resistant materials in bushfire zones may attract lower premiums.

📅

Age of Home

Older homes may cost more to insure due to outdated wiring, plumbing, or building methods. However, some older homes built with solid double brick may be cheaper to insure than newer lightweight constructions.

📈

Claims History

A history of claims on the property or by you personally can increase premiums. Claim-free years may earn discounts with some providers. Multiple weather-related claims can significantly increase future premiums.

🔒

Security Features

Alarm systems, deadlocks, security cameras, and smoke detectors can earn discounts. Some insurers require minimum security standards to provide theft cover.

🛠

Excess Amount

Choosing a higher voluntary excess lowers your premium. Standard home insurance excess is $500 - $1,000. You can typically choose anywhere from $200 to $5,000+.

🏠

Multi-Policy Discounts

Many Australian insurers offer discounts of 5 - 15% for bundling home and car insurance, or building and contents insurance together. Check each provider's current bundling offers.

🌊

Natural Hazard Exposure

Properties in bushfire zones, flood-mapped areas, cyclone regions, or hail-prone postcodes pay more. BAL (Bushfire Attack Level) ratings and flood zone mapping directly affect your premium.

Home Insurance Costs in Australia (2026 Guide)

Indicative annual premiums for a standard three-bedroom home with no recent claims.

NSW
$1,800 - $3,200
~$150-270/mo
VIC
$1,600 - $2,800
~$130-230/mo
QLD (South East)
$2,000 - $3,500
~$170-290/mo
QLD (North)
$5,000 - $10,000+
~$420-830+/mo
WA
$1,500 - $2,800
~$125-230/mo
SA / TAS / ACT
$1,400 - $2,500
~$115-210/mo

Typical Excess Amounts

  • Standard excess: $500 - $1,000
  • Flood excess: $1,000 - $10,000+ (varies by location)
  • Cyclone excess: Percentage-based in some regions
  • Voluntary excess: $200 - $5,000+

Why North Queensland Costs More

  • Cyclone risk: Directly in the tropical cyclone belt
  • Flood exposure: Frequent severe rainfall and flooding
  • Reinsurance costs: Global reinsurers price for catastrophe risk
  • Building costs: Remote locations increase repair costs

Disclaimer: All prices shown are indicative estimates based on publicly available data as of early 2026. Actual premiums vary significantly based on your property's location, construction, sum insured, and claims history. These figures are not quotes. Always obtain a personalised quote from the insurer directly.

10 Ways to Save on Home Insurance in Australia

Practical tips that could save you hundreds of dollars every year.

1

Compare every year

Don't auto-renew without checking alternatives. Premiums can vary by 20 - 40% between providers for the same property. Use comparison tools and get at least 3 quotes from different insurers.

2

Increase your excess

Raising your excess from $500 to $1,500 can reduce premiums by 10 - 20%. Only do this if you can comfortably afford the excess out of pocket when you need to claim.

3

Bundle your policies

Combining building, contents, and car insurance with one insurer often saves 5 - 15% on premiums. Most Australian insurers still offer meaningful multi-policy discounts.

4

Review your sum insured

Make sure your sum insured is accurate - not too high (overpaying on premiums) and not too low (underinsured). Use the Cordell/CoreLogic Sum Sure calculator annually.

5

Pay annually

Monthly payments typically include instalment fees that add up over the year. Paying your premium in one annual lump sum is almost always cheaper overall.

6

Improve security

Installing alarm systems, deadlocks, security cameras, and smoke detectors can earn premium discounts and reduce your risk of claims.

7

Maintain your home

Regular maintenance prevents claims and keeps your insurer happy. Fix leaks promptly, maintain your roof, clear gutters, trim trees near your home, and address issues before they escalate.

8

Check for loyalty discounts

Some insurers offer long-term customer discounts. However, CHOICE notes that loyalty does not always mean cheaper - always compare at renewal.

9

Reduce your bushfire risk

If you are in a bushfire-prone area, maintaining a defensible space around your home, clearing vegetation, and using fire-resistant materials can reduce your risk profile and may help lower premiums.

10

Ask about claim-free discounts

Some providers offer discounts for years without claims. These are not as standardised as car insurance no-claim bonuses, so ask each provider directly about their claim-free reward policies.

Switching & Renewal: When and How to Change Insurers

Your renewal date is the best time to review your cover and compare prices.

Don't Auto-Renew Without Checking

Most home insurance policies renew automatically. Your insurer will send a renewal notice showing next year's premium and updated sum insured. Home insurance premiums have risen sharply across Australia in recent years due to natural disasters and reinsurance costs, so checking alternatives at renewal is more important than ever.

Compare Estimates Before Renewal

Start comparing 2 - 3 weeks before your renewal date. You'll need your property address, construction details, year built, sum insured, and claims history. Most providers offer online quotes in under 10 minutes. Get quotes from at least 3 - 4 insurers.

Check Cover Differences Carefully

Don't just compare price. Check what's included: flood cover definition, cyclone or bushfire excesses, temporary accommodation limits, and any specific exclusions. A cheaper policy with significant gaps may cost more in the long run.

Time the Switch to Your Renewal

Start your new policy from the day your old one expires to avoid a gap in cover (your mortgage lender requires continuous insurance). If you cancel mid-term, check for cancellation fees. Under the Insurance Contracts Act 1984, you have a right to cancel and receive a pro-rata refund.

⚠️ Renewal Traps to Watch For

  • Sum insured not updated - if your insurer hasn't adjusted your sum insured for rising building costs, you may be underinsured without realising it. Building costs in Australia have risen significantly since 2020.
  • Premium creep - Australian home insurance premiums have increased substantially in recent years due to natural disasters (bushfires, floods, cyclones), rising reinsurance costs, and building cost inflation.
  • Changed excess amounts - your insurer may have increased your flood, cyclone, or bushfire excess at renewal. Read the renewal notice carefully.
  • Reduced cover at same price - some insurers tighten policy wording at renewal, removing benefits or adding exclusions. Compare your new PDS to the old one.

How to Make a Home Insurance Claim

Step-by-step guide to the claims process in Australia.

1

Ensure Safety

Make sure everyone is safe. If the home is structurally damaged, do not enter. Call 000 for emergencies. In a bushfire or flood, follow emergency services directions.

2

Document Damage

Take photos and video of all damage before any cleanup. Keep damaged items if possible. Note the date and circumstances of the event.

3

Contact Insurer

Call your insurer's 24/7 claims line or lodge online. After a major natural disaster, the Insurance Council of Australia (ICA) may issue a catastrophe declaration, which triggers priority response protocols.

4

Assessment

A loss adjuster or assessor inspects the damage. For large claims, this may involve engineers or quantity surveyors. Emergency repairs can proceed - keep all receipts.

5

Resolution

Repairs are completed by approved contractors, or you receive a cash settlement. Temporary accommodation is arranged if needed. If you are unhappy with the outcome, use the insurer's internal dispute resolution process, then AFCA.

💡 Claim Tips

  • Report damage as soon as possible - most policies require prompt notification
  • You can make emergency repairs to prevent further damage (keep receipts)
  • After major natural disasters, the ICA catastrophe declaration means insurers prioritise claims from affected areas
  • If you disagree with a claim decision, first use your insurer's internal dispute resolution, then escalate to AFCA (Australian Financial Complaints Authority) - it's free
  • Keep a home inventory with photos - this helps with both building and contents claims
  • Consider engaging your own independent loss assessor for large or complex claims

Home Insurance in Australia: What You Need to Know

Key Australian-specific facts about home insurance, natural hazards, and state-based differences.

Understanding Your Policy Document (PDS)

Every Australian insurer must provide a Product Disclosure Statement. Here's what to look for.

What is a PDS?

A Product Disclosure Statement outlines everything about your home insurance policy: what's covered, what's excluded, your obligations, and how to claim. Under the Corporations Act 2001, all Australian insurers must provide one. Read it before you buy, not after you need to claim.

Key Sections to Check

  • Sum insured basis - how is the payout calculated? Is it replacement cost, indemnity value, or a fixed sum?
  • Flood definition - how does this insurer define 'flood'? Is flood covered as standard or optional? What is the flood excess?
  • Natural disaster cover - bushfire, cyclone, storm, earthquake - what's covered and what are the specific excesses?
  • Exclusions - gradual damage, maintenance, termites, actions of the sea, and water damage definitions
  • Your obligations - maintenance requirements, notification of changes, occupancy conditions
  • Claims process - time limits, documentation requirements, dispute resolution via AFCA

Your Disclosure Obligations

When you apply, you must answer all questions honestly and accurately about your property: age, construction, previous claims, known issues (subsidence, flood history, bushfire risk), and any building work. Under the Insurance Contracts Act 1984, you have a duty to take reasonable care not to make a misrepresentation. If you provide inaccurate information, your claim may be reduced or denied.

Notify Your Insurer of Changes

Let your insurer know about any changes during your policy period:

  • Renovations or building work (especially structural changes)
  • Using part of the home for business purposes
  • Leaving the home unoccupied for extended periods
  • Taking on tenants or boarders
  • Installing a swimming pool or spa
  • Changes to security (e.g., removing an alarm system)

Home Insurance FAQs

Answers to the most common questions about home insurance in Australia.

Is home insurance compulsory in Australia?
Home insurance is not legally compulsory in Australia. However, if you have a mortgage, your lender will almost certainly require you to have building insurance as a condition of the loan. Even without a mortgage, insuring your home protects your most valuable asset from bushfire, flood, storm, and other risks.
What about flood cover?
Flood cover was historically excluded from many Australian home insurance policies. Following major floods and 2022 federal reforms, flood cover is now more commonly included as standard - but not all insurers include it, and definitions of 'flood' vary. Some policies distinguish between storm water runoff (usually covered) and riverine flooding (may be excluded or optional). Always check the flood definition in your PDS carefully.
Does home insurance cover bushfire damage?
Most comprehensive home insurance policies cover bushfire damage. However, your property's Bushfire Attack Level (BAL) rating significantly affects your premium. Properties rated BAL-40 or BAL-FZ (Flame Zone) may face coverage restrictions, higher premiums, or difficulty obtaining cover. Some insurers may decline cover for properties in the highest bushfire risk categories.
What's the difference between building and contents insurance?
Building insurance covers the physical structure of your home - walls, roof, foundations, fixed fixtures, and permanent improvements. Contents insurance covers your personal belongings - furniture, electronics, clothing, appliances, and other moveable items. Most insurers offer combined building and contents policies at a bundled rate, which is the most popular choice.
How much does home insurance cost in Australia?
Home insurance typically costs $1,800 - $3,500 per year for a standard three-bedroom home, though this varies hugely by location. North Queensland homeowners can pay $5,000 - $10,000+ due to cyclone risk. Bushfire-prone areas and flood zones also attract significantly higher premiums.
Is there an EQC equivalent in Australia?
No. Unlike New Zealand, which has EQC (Toka Tu Ake) providing government-backed natural disaster cover, Australia has no equivalent scheme. All home insurance cover comes from private insurers. The Australian Government provides disaster recovery payments through Services Australia after declared disasters, but these are hardship assistance - not insurance payouts. The ARPC operates a cyclone reinsurance pool for northern Australia (since July 2022).
How do I calculate my sum insured?
Use a rebuild cost calculator such as the Cordell/CoreLogic Sum Sure calculator (available through many Australian insurers) or engage a registered quantity surveyor. Your sum insured should cover the full cost to demolish and rebuild, including professional fees, council approvals, and compliance with current building codes. Underinsurance is a major problem in Australia - review your sum insured every year.
What is not covered by home insurance?
Common exclusions include gradual damage (rot, rust, mould), general wear and tear, damage from poor maintenance, deliberate damage, termite and vermin damage, actions of the sea (coastal erosion), and damage from illegal activities. Flood may be excluded or limited in some policies. Always check your PDS for the full list of exclusions.
What about strata or body corporate insurance?
If you live in a strata scheme (apartment, unit, townhouse), the body corporate (owners corporation) arranges building insurance for the common property and building structure. You are responsible for insuring your contents and any fixtures or improvements inside your lot. Check with your body corporate to understand exactly what their policy covers and where your responsibility begins.
How do I claim after a natural disaster?
Contact your insurer as soon as possible. Document all damage with photos and video. After major events, the Insurance Council of Australia (ICA) may issue a catastrophe declaration, triggering priority claims handling. Keep receipts for emergency repairs. If you are unhappy with the outcome, use your insurer's internal dispute resolution, then escalate to AFCA (free).
How do I complain about my insurer?
Start with your insurer's internal dispute resolution (IDR) process - all insurers are required to have one. If you are not satisfied with the outcome, escalate to the Australian Financial Complaints Authority (AFCA), which provides free, independent dispute resolution for insurance complaints. AFCA can make binding decisions on insurers.
Am I covered during renovations?
You must notify your insurer before starting any major renovations or building work. Failure to do so could void your cover. Most insurers will continue cover during renovations but may adjust your premium, add conditions, or require your builder to have their own insurance. If the home is unoccupied during renovation, different rules may apply.

Home Insurance Glossary

Key terms explained in plain language.

Sum Insured
The maximum amount your insurer will pay to rebuild your home. You set this when you take out the policy. If rebuild costs exceed this, you pay the difference. Underinsurance is a major issue in Australia.
BAL (Bushfire Attack Level)
A rating from BAL-LOW to BAL-FZ (Flame Zone) that measures the severity of potential bushfire attack on a property. Higher BAL ratings mean higher insurance premiums and may trigger building construction requirements.
Excess
The amount you pay out of pocket when making a claim. Higher excess = lower premium. Some policies have separate, higher excesses for flood, cyclone, or bushfire events.
Flood
The definition varies between insurers. Generally means the covering of normally dry land by water that has escaped from a natural waterway. Storm water runoff may be treated differently. Always check your PDS.
Replacement Cost
The cost to rebuild your home to the same standard, using modern materials and methods, compliant with current building codes. This is what your sum insured should reflect.
Indemnity Value
The value of your home at the time of loss, accounting for age and depreciation. Less than replacement cost. Some older policies use indemnity value.
Strata Insurance
Building insurance arranged by the body corporate (owners corporation) for apartments, units, and townhouses in a strata scheme. Covers the building structure and common property.
PDS
Product Disclosure Statement. The legal document outlining your policy terms, cover, exclusions, and how to claim. Required under the Corporations Act 2001.
Underinsurance
When your sum insured is less than the actual cost to rebuild. A significant and widespread risk in Australia given rapidly rising construction costs.
AFCA
Australian Financial Complaints Authority. Free, independent dispute resolution for insurance and financial services complaints.
ICA
Insurance Council of Australia. The industry body for general insurers. Issues catastrophe declarations after major natural disasters.
Temporary Accommodation
Cover for the cost of living elsewhere while your home is being repaired or rebuilt. Usually has a time and dollar limit specified in your PDS.
Cordell/CoreLogic Calculator
A tool used by Australian insurers and homeowners to estimate the cost of rebuilding a home. Available through many insurer websites as the Sum Sure calculator.
Emergency Services Levy (ESL)
A levy added to insurance premiums in some states (notably NSW and TAS) to fund fire and emergency services. Collected through insurance premiums rather than council rates.

Home Insurance by Location

Find home insurance information specific to your state or territory. Compare cover options, local risks, and tips for every major location in Australia.

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