How to make a home and contents insurance claim

Always confirm the next steps of the claims process with the insurance provider and the expected time of completion of those steps. This will help you to understand the timeframe involved with settling your claim, and hold the insurance company to account regarding the completion of assessment, the approval of your claim, and the commencement of repairs or replacement of items.

The minimum time and standard which insurance providers must meet when handling your claim are both set out in the Insurance Code of Practice.

An excess is the amount you may need to pay whenever you make a claim. You can specify the excess amount when you take out your home or contents insurance policy and this will be shown on your insurance policy schedule. This excess is generally deducted from the amount you receive from your insurer when they pay your claim.

If your insurer has accepted your claim, in consultation with you, they will decide whether to repair, rebuild, replace or pay you the cost for the repairs or rebuilding of either your property or lost or damaged contents.

In some situations, your insurance provider may not cover or pay your claim. If this happens your insurer must tell you why. You can object to this decision and ask for your case to be reviewed either through the insurance provider’s own internal dispute-resolution body or by going directly through to the Australian Financial Complaints Authority (AFCA) for free independent resolution of your complaint.

Home insurance, otherwise known as building insurance generally covers the cost of repairing or rebuilding residential buildings on the property, including garden sheds, pools and fences. Contents insurance specifically covers the cost of replacing damaged or stolen belongings, such as mobile phones and electronic devices.

When purchased together, the home and contents are covered for accidental damage or loss, flood and fire and other listed events noted in the product disclosure statement. 

Even if you’re renting, you should still consider protecting your contents and belongings from loss or damage due to accidental breakage, theft, or fire. Purchasing contents-only insurance protects your personal possessions and valuables such as furniture, mobile phones, televisions, computers and clothes. 

It’s important to know what is and isn’t covered by a policy before making the decision to purchase, so make sure you read your insurer’s product disclosure statement and ask the insurance provider questions to know exactly what you are covered for, and what you’re not covered for.

Comparing insurance from several providers also helps in making the right decision. Some insurance providers also provide flexibility in selecting or deselecting specific benefits and features as well as choosing a suitable excess to meet your specific needs.

When people underestimate the value of their home and contents, they insure them for less than they’re worth. This could happen when trying to save money on insurance premiums or being unable to accurately estimate the true replacement value of buildings and contents. Whatever the reason, underinsurance can prevent you from being fully covered, leaving you out of pocket at claim time.

To help prevent underinsurance some insurance providers have contents and building calculators online to help estimate the true cost of replacing your home and contents using today’s prices. Some insurance providers also provide Full Building Replacement insurance, taking away the hassle and complexity of trying to estimate the replacement cost of your home.