skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus
Article related to:

Home Insurance

Floods, bushfires and termites: what does home insurance cover?

2023-09-01 04:30

In our sunburnt country, natural disasters are inevitable. Insuring your home can help give you peace of mind and help to ensure you're financially protected if disaster strikes.

After the devastating 2019-2020 bushfires, a royal commission reported that around 38,500 building, contents and commercial insurance claims totalling an estimated $2.33 billion had been lodged, whilst warning that more concurrent and consecutive hazard events are expected. Home and contents insurance, including flood and fire insurance, are especially important when you live in a country that has seen some devastating bushfires and weather events, and is likely to see more.

Whether it's a bushfire, flood, cyclone or hailstorm, it's not about expecting the worst – it's about knowing that you and your family have financial protection in case your home and contents are damaged or destroyed.

Understand the risks

Some areas of Australia are more prone to natural disasters such as bushfires and cyclones, and it's worth finding out if you're in one of them.

  • Your state emergency service or local fire service can give you information on flood and fire dangers and preparation
  • Your local council may be able to tell you whether your house has been built to a specific standard (such as cyclone standard)

Specific types of cover

Home and contents insurance policies are not all the same: it’s really important to know what yours covers you for.

Fire cover including insurance for bushfires

Fire insurance and fire-damage restoration tends to be top of mind during Australia's peak bushfire season in summer. And if you're in a fire-prone area, you should regularly review and update your bushfire survival plan.

Building and contents cover with ANZ Home Insurance can help cover you for loss or damage caused by fire (including bushfires) to your home and your contents inside.disclaimer 

Plus, ANZ Home Insurance includes a Safety Net as standard. This means that if your home is destroyed by fire and needs to be rebuilt or repaired, and costs exceed your sums insured, CGU will pay up to an extra 25% of your building sum insured on top of your building sum insured to help cover these costs.disclaimer

For example, if your building sum insured is $300,000, with the Safety Net you would have coverage up to $75,000 on top of your building sum insured to cover extra costs that exceed $300,000.

Flood insurance

Flood insurance cover is a variable feature across different home insurance policies. Flood cover is a standard policy inclusion in all ANZ Home Insurance policies, however other insurers may offer:

  • flood cover as a standard policy inclusion
  • no flood cover
  • flood cover, but with an additional loading
  • flood damage cover up to a set amount

Make sure you know what your policy covers and whether it's adequate for your home and your situation.

Termite damage

Although you might think of termite damage as a 'natural' event, most insurers, including CGU, the underwriter of ANZ Home Insurance, don't provide cover for termite damage. This is because it's preventable in a way that, say, a flood or bushfire isn't. The best thing you can do is make sure the damage doesn't occur in the first place.

  • Termites need moisture, so minimise it by repairing anything that's leaking or letting in water, such as taps, pipes, air conditioning units, roof tiles, etc
  • Make sure external plumbing – gutters and downpipes especially – divert water away from your house
  • Check foundations and woodwork regularly for tell tale signs of termites such as mud tubes, hollow-sounding wood or bubbling paintwork
  • Store any untreated wood as far away from the house as possible
  • Before purchasing a property make sure you commission a pest inspection to check for termite damage and understand the risk of your property being infested by termites

Choose the right insurance cover for you

Many people with home insurance underestimate the value of their building or contents, or their insurance policy isn't as comprehensive as they thought it was, and they're left short when it comes time to make a claim. With a natural disaster, your entire home and contents can be lost. Making sure you accurately value your home and contents, and that this is reflected in your insurance policy, is critical. Sum insured calculators are available from the Insurance Council of Australia to help you determine your sums insured.

Take a look through your existing policy and make sure it suits your needs – time spent ensuring you have adequate cover is always well spent. And if you're in the market for a new or more comprehensive cover, check out ANZ Home Insurance to see if it's right for you today.

anzcomau:product/personal/insurance/home-insurance
Floods, bushfires and termites: what does home insurance cover?
2023-09-01
/content/dam/anzcomau/images/flood-in-livingroom_Regular.jpg

Discover how ANZ can help you protect what matters most

ANZ offer home, landlord and car insurance. Get on top of your insurance.

Related articles

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

ANZ Home Insurance is issued by Insurance Australia Limited (ABN 11 000 016 722, AFSL 227681) trading as CGU Insurance and distributed by ANZ under its own license. ANZ recommends that you read the ANZ Financial Services Guide (PDF), ANZ Home Building Key Facts Sheet (PDF), ANZ Home Contents Key Facts Sheet (PDF), ANZ Home Insurance Target Market Determination (PDF), ANZ Home Insurance Premium, Excess and Discounts Guide (PDF) and the ANZ Home Insurance Product Disclosure Statement (PDF) (available online or by calling 13 16 14), before deciding whether to acquire, or to continue to hold, this product.

Although Australia and New Zealand banking Group Limited (ANZ) (ABN 11 005 357 522 AFSL 234527) distributes these products, ANZ does not guarantee or stand behind the issuers or their products. The ANZ Brand is a trademark of ANZ and is used by CGU under licence from ANZ.

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

CGU will not cover any fire that was started with the intention to caused damage by you, your family, anyone who normally lives in your home including a tenant, or anyone who enters your home or the site with the consent of you, your family or anyone who normally lives in your home. CGU will not cover loss or damage which results from scorching or melting where there is no flame.

Return

If your home suffers loss or damage as a result of an incident CGU have agreed to cover under 'cover for loss or damage to your home and contents' and the cost to repair or rebuild your home is higher than the 'building' sum insured, CGU will pay the reasonable extra costs to repair or rebuild your home up to 25% of the 'building' sum insured. This additional benefit is payable in addition to the ‘building’ sum insured.

Return
Top