Your home is not only one of your most expensive assets, but also one of the most important. While you’ll hopefully never have to make a claim, building insurance could help you get back on your feet if something unexpected happens.
Whether you’re a first home buyer or thinking about switching policies, this guide covers some of the essentials of building insurance to help you find cover for your situation.
Building insurance covers your home’s structure, permanent fixtures and fittings from loss or damage. It can cover the cost of repairing, replacing or rebuilding your home after events such as fire, storm damage and flood. Generally, building insurance policies cover things such as:
Items such as garages, solar panels, fences and sheds are sometimes covered as well, depending on the policy.
Many insurance providers offer building insurance on its own or bundled as home and contents insurance, which covers your belongings and furniture inside your house as well as your building.
There are two main types of building insurance:
Typically, building insurance covers loss or damage from events such as:
Some building insurance policies will also cover things like:
Every policy’s coverage is slightly different, so make sure you read the (PDS) before agreeing to your new policy .
Depending on your policy provider and the level of cover you’ve chosen, building insurance may exclude cover for damage caused by the following:
Leaving your home unoccupied may also exclude you from building insurance cover, however most insurers will continue to cover your home as long as you’re not gone for more than 30 days. Be sure to let your insurance provider know if your home will be vacant for an extended period of time, as there may be some restrictions to your cover.
As a general rule of thumb, you’ll want enough cover to rebuild your home at today’s prices. Unless you opt for total replacement cover (which is typically more expensive), you’ll need to figure out your sum insured – that is, how much it would cost to rebuild or replace your property.
Fortunately, you don’t have to be a building materials expert to do so. Use our Building Calculator to estimate your rebuild costs and help determine the right level of cover for your home.
Renovations can affect how much it would cost to repair or rebuild your home, which could change how much cover you need. And, in some cases, you may not be covered if you plan to build, renovate, make alterations or additions, or demolish a building at the site. Most insurance policies require you to notify the insurer of what work you’ll be doing.
So, if you’re thinking about making updates to your home, speak to your insurance provider first.
This depends on the insurance provider and your policy, but there are some common factors that could affect the cost of your cover:
Building insurance is cover you can count on if something unexpected happens. It’s also something you may be required to have upon exchanging contracts or reaching settlement as part of your home loan agreement.
By choosing the right building insurance – and adding contents insurance for your possessions – you can rest assured knowing that your home and its belongings are covered.
Imagine if a flood, fire or storm wreaked havoc on your home and also caused damage to your personal property – what would you do? A home insurance policy allows you to receive compensation for a specific loss or damage in return for the payment of a premium.
One of the biggest risks when considering home insurance is not taking out enough cover. In the event that your home and/or contents are completely destroyed, you may not have enough money to rebuild the home entirely or replace all of your possessions.
The information contained in this article is general information only and is not specific to any product.
It does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs to these factors before acting on it.
Terms, conditions and exclusions apply to any insurance product. Please read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding.
Cover is subject to your application for insurance being accepted.
Product Disclosure Statements (PDS)
Home and Contents Insurance is issued by Allianz Australia General Insurance Limited ABN 99 003 719 319, which is a corporate authorised representative of Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz Insurance). St.George Bank – a Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 arranges the insurance under a distribution arrangement with Allianz Insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Read the Product Disclosure Statement to see if this insurance is right for you.