Bushfire Risk and Home Insurance: Practical Checks for Australian Homes is a practical guide for Australian readers who want to understand home insurance before buying, renewing or making a claim.
Review important home insurance questions for bushfire-prone areas, including sum insured, exclusions and rebuilding costs.
Quick answer
Home insurance should not be compared by price alone. You should compare what is covered, the policy limits, the excess, exclusions, claim rules and the evidence you may need if something goes wrong.
What to compare in a home insurance policy
- Type of cover: building, contents, combined home and contents, landlord or renter contents cover.
- Sum insured: the amount selected for rebuilding, repairing or replacing property and belongings.
- Excess: the amount you may need to contribute when making a claim.
- Events covered: storm, fire, theft, flood, accidental damage, escape of liquid and other insured events.
- Exclusions: situations the insurer may not cover, such as wear and tear, poor maintenance or gradual damage.
Practical checklist before buying or renewing
- Check whether you need building cover, contents cover or both.
- Review the Product Disclosure Statement and policy schedule carefully.
- Compare flood, storm, fire, theft and accidental damage definitions.
- Keep receipts, photos and serial numbers for important items.
- Review your sum insured each year, especially after renovations or major purchases.
Common mistakes to avoid
Many households focus only on the cheapest premium. This can be risky if the policy has low limits, a high excess, strict exclusions or weak claim support. Another common mistake is not updating the insurer after renovations, moving, buying high-value items or changing how the property is used.
Frequently asked questions
Is home insurance compulsory in Australia?
Home insurance is generally not required by law, but lenders may require building insurance if you have a mortgage. Contents insurance is usually optional, but it can help protect belongings against insured events.
What documents help with a home insurance claim?
Useful documents may include photos, receipts, invoices, police reports, repair quotes, serial numbers, emails and a timeline of what happened.
Should I choose the cheapest home insurance?
The cheapest policy is not always the best fit. Compare cover, exclusions, limits, excess and claim conditions before deciding.
General information only: This article is educational and does not provide personal financial advice. Read the relevant Product Disclosure Statement, Target Market Determination and policy wording, and consider your own needs before buying insurance.
