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Building insurance frequently asked questions

Published 19 December 2018

Why do I need building insurance?

Buying (or building) a home is one of the largest financial investments you’re likely to make in your life. Most of us borrow money to buy a property because the cost is generally more than we could manage upfront. So, if something unexpected happens to that home you want to know it’ll be protected.

What does building insurance cover?

Building insurance (also sometimes known as ‘home building insurance’) covers the cost of repairing or rebuilding your home if it is damaged by events such as natural disasters, accidental glass breakage, breaking and entering and vandalism. Your building insurance may also include legal liability cover.

What’s the difference between total-replacement cover and sum-insured cover?

Sum-insured is the cheaper and more common type of home insurance. With this type of policy your insurer provides the amount of cover you nominate. So, for example, if you’ve selected $450,000 worth of cover but it costs $500,000 to rebuild your home, you’ll have to cover that last $50,000 out of your own pocket – this is called underinsurance.

If you want to avoid being underinsured, you can opt for a more comprehensive total-replacement policy. With this policy your insurer covers the total cost of rebuilding, or repairing your home (or paying the cash
equivalentdisclaimer), however much that ends up costing. ANZ Home Insurance offers ‘full building replacement’ as a standard feature of the policy.

Am I insured during construction, renovations, alterations or repairs?

This can vary from policy to policy.  If you have an ANZ Home Insurance policy you will need to first disclose the details of any construction, renovation, alterations or repairs to your buildings where the estimated value of that work is more than $100,000. Unless the insurer agrees in writing, you won’t be covered during the course of any such work of this scale and your policy may be cancelled.  

What are the benefits of ANZ Home Insurance?

ANZ Home Insurance is flexible so you can so you can tailor your policy to suit your circumstances. Want just your building covered? Easy. Want to include cover for your furniture and other belongings? No problem. Like to take advantage of optional benefits? Take your pick.

ANZ Home Insurance building cover offers full building replacementdisclaimer. If your home is totally destroyed in an insurable event, such as a fire or flood, ANZ will cover the cost or pay you the cash equivalent to re-build your home to the condition it was before the loss or damage.

What’s included in ANZ Home Insurance building cover

What is covered?


Up to $1,000,000 towards your mortgage if you pass awaydisclaimer

If your home is destroyed by fire and needs to be rebuilt from scratch. The cost of replacing your home will be covered.

The cost of demolishing and removing building debris will also be covered.

Flood, bushfire and other natural eventsdisclaimer

A nearby river floods and damages your foundations, stairs and floorboards. The cost of repairing your home is covered, along with the removal of debris.

If a storm or landslide the day after a severe storm damages your house, the cost of repairing your house is covered.

Domestic outbuildings, like garden sheds and granny flats

If your shed is destroyed in a storm, the cost to rebuild the shed will be covered.

Architects, surveyors and legal feesdisclaimer

If your home is destroyed by fire. Professional fees, within reasonable limits, are covered and paid in addition to the rebuilding cost.

Accidental glass breakage

If a ball flies through your kitchen window, the cost to replace the glass will be covered.



Accidental loss or damage at home

If you accidentally leave a hot cooking pot on the kitchen bench and char the surface, the cost of the repair or replacement is covered.


ANZ Home Insurance building cover has inclusions you don’t always get as standard from other insurers. Find out the details of this included coverage and more. Read the ANZ Home Insurance Product Disclosure Statement (PDF 1.3MB) for the full list of all insured events and exclusions.

What about the contents of my home?

You can add cover for your home under the same policy, and many insurers also offer the additional benefit of covering specific valuables that wouldn’t be covered within the standard item limits. You can find out more about contents insurance in the ANZ Home Contents Key Facts Sheet (PDF 134kB).

Must I include contents cover in my building insurance policy?

No, it’s up to you. Bear in mind that we often underestimate the cost of replacing all the furniture and other belongings that we accumulate over the years.

Why choose ANZ’s Home Insurance?

ANZ offers great cover at great value. But don’t take our word for it – CANSTAR awarded us its outstanding value home and contents insurance award for 2018. In fact, we’re CANSTAR’s most nationally awarded home insurer since 2009. And CHOICE® recommended ANZ Home & Contents Insurance for 2015 2016 and 2017 with the best overall performer score across 56 insurance products.

Is your home fully protected?

Make sure you’ve got the cover you need with ANZ Home Insurance today.

Find out more about ANZ Home and Contents Insurance

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Thieves, fires and accidents will strike renters, just as they do homeowners. At ANZ, we offer the same great contents insurance to all.


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This information is current as at date of publication and is subject to change.

The issuer of this information is ANZ. While ANZ has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any responsibility or liability arising from your use of this information.

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 AFSL 234527 is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). The issuers of these products are not Banks. Although ANZ distributes these products, these products are not a deposit or other liability of ANZ or its related group companies. None of them stands behind or guarantees the issuers or the products. 

This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. You should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. 

The ANZ App is provided by ANZ. Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them. ANZ recommends that you read the ANZ App Terms and Conditions available at and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

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Taxation law is complex and this information has been prepared as a guide only and does not represent tax advice. Please see your tax adviser for independent taxation advice.

We do not cover loss or damage caused by a bushfire, flood or named cyclone that occurs within 48 hours of the start of your policy. We cover loss or damage as a result of charring, melting or scorching as a result of a fire without the presence of a flame, but not where it is caused by a hot item (including cigarettes, cigars or pipes), home heater or cooking appliance, unless Accidental Loss or Damage (Buildings and/or Contents) optional benefit has been selected.  

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Reasonable costs of employing an architect or surveyor, and also paying any legal fees that arise from the rebuilding, if your buildings suffer total loss or damage as a result of an event we have agreed to cover, and need to rebuilt as a result.

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