Insurance In Australia

🏡 What to Look Out For When Choosing Home Insurance in Australia

Choosing home insurance isn’t just about ticking a box—it’s about protecting your biggest investment. With premiums rising and policies varying widely, it’s never been more important for Australian homeowners to understand what to look out for when picking the right cover.

Here’s your essential guide to making a smart, informed decision when it comes to home insurance in Australia.

1. 🔍 Know the Two Types of Cover: Building vs. Contents

Home insurance usually falls into one of two categories:

• Building Insurance covers the structure of your home—walls, roof, floors, plumbing, etc.
• Contents Insurance covers what’s inside—furniture, electronics, clothes, and other personal belongings.

Many providers offer combined policies, but you can also purchase them separately. If you own your home, you likely need both. If you’re renting, contents insurance may be all you need.

Tip: Make a detailed inventory of your belongings so you can estimate an accurate coverage amount for contents.

2. 🌪️ Understand What Is—and Isn’t—Covered

Not all home insurance policies are created equal. While most policies cover standard events like fire, theft, and storms, you should look closely at the Product Disclosure Statement (PDS) for exclusions. Watch out for:

• Flood damage (not always included by default)
• Bushfire or cyclone waiting periods
• Accidental damage or tenant-related damage (for landlords)

Look out for: Policies that exclude events common in your area. For example, if you live in a flood-prone suburb, make sure flood cover is included—some insurers exclude it or charge a high premium.

3. 💰 Don’t Underinsure—It Could Cost You

Many Australians underinsure their homes simply to save on premiums. But in the event of a major disaster, this could leave you tens or even hundreds of thousands of dollars out of pocket.

Instead, use a rebuilding cost calculator (available on most insurer websites) or get a professional valuation to ensure your sum insured reflects the real cost of rebuilding your home.

Note: Building costs have skyrocketed in recent years. What was adequate cover five years ago may now fall short.

4. 📏 Compare More Than Just the Premium

It’s easy to focus on price, but the cheapest policy isn’t always the best. Look at:

• Excess: Higher excess usually means a lower premium, but more out-of-pocket when you claim.
• Benefit limits: Some policies cap how much they’ll pay per item (e.g. $2,000 for electronics). That may not cover your 85” TV or designer sofa.
• Additional cover: Does the policy offer temporary accommodation, debris removal, or emergency repairs?

Pro tip: Use a comparison site, but always double-check the fine print on the insurer’s own website before committing.

5. 🚨 Be Honest When Applying

Be upfront when declaring information—like the condition of your roof, past claims, or the presence of a security system. If you leave out or fudge the facts, your insurer could deny a future claim based on non-disclosure.

Also: Keep your insurer informed about changes (renovations, short-term rentals, new security systems) as they can affect your policy.

6. 🛠️ Consider Extras That Matter to You

Insurers offer optional add-ons such as:

• Accidental Damage Cover (handy for kids and clumsy housemates)
• Portable Contents Cover (for items like phones and laptops taken outside the home)
• Motor Burnout Cover (for appliances like fridges and air cons)
• Pet Cover (some include vet costs for injuries)

Add-ons cost more, so only choose ones that make sense for your lifestyle.

7. 📞 Check Customer Reviews and Claims Process

What happens when disaster strikes? The last thing you want is an insurer that dodges calls or delays payouts. Look for companies with:

• A reputation for fair claims processing
• 24/7 claims hotlines
• Positive online reviews (check ProductReview, Finder, Canstar)

Warning sign: Excessive negative reviews about delays, rejected claims, or poor service should raise a red flag.

8. 💡 Look for Discounts and Loyalty Perks

Many insurers offer discounts if you:

• Combine home and contents
• Install security systems or smoke detectors
• Are claims-free for several years
• Pay annually instead of monthly

Some brands also offer loyalty perks or cashback programs—these can add real value over time. For example Everyday Insurance offers special Everyday Insurance coupon codes to use when you sign up to get 10% off.

Final Thoughts: Don’t Set and Forget

Home insurance isn’t a once-off decision. As your life changes, so should your cover. Review your policy annually, especially if you’ve renovated, bought expensive items, or moved house.

In a volatile climate and economy, having the right home insurance is more important than ever. Do your homework, ask questions, and don’t just go with the first option—or the cheapest.

A little time spent now can save you a world of pain later.