Home insurance claims

Understand Your Home Insurance Policy

Before lodging any home insurance claim, take time to understand your policy. Your insurer provides a Product Disclosure Statement (PDS) and a Policy Schedule that set out exactly what is covered.

• Home insurance generally covers the building.
• Contents insurance covers personal belongings inside.

Many households combine both into a single home and contents insurance policy.

Should You Lodge a Home Insurance Claim?

Not every event justifies a home insurance claim. Claiming may affect:

• Your no-claim bonus.
• The cost of future premiums.
• Your ability to get insurance in the future.
• If the repair costs are close to your excess, you may be better off paying out of pocket. But if the loss is significant, lodging a claim is usually the right step.

The Lodgement Stage

The home insurance claims process usually follows these steps:

• Emergency repairs and safety – Secure your home and prevent further damage. Insurers may arrange a make-safe service, or you can organise it yourself and later seek reimbursement.
• Lodge the claim – Most insurers allow you to claim online, by phone, or via app. Lodge as soon as possible, as delays may cause disputes about the cause of damage.
• Provide evidence – Prove your loss with receipts, photos, videos, or expert reports. Keep records of all damage and communications.
• Pay your excess – This is your contribution to the claim. If you can’t pay upfront, ask the insurer to deduct it from your payout.
• Ask for fast-tracking – If you are in financial hardship, insurers must fast-track home insurance claims or pay an advance within 5 business days.

The Assessment Stage

After you lodge your home insurance claim, the insurer will usually arrange an assessment stage to confirm what happened. This is where they look at:

• The cause of the damage – whether it was an insured event such as storm, flood, or fire.
• The extent of the damage – how much repair or replacement is needed.

Assessments may involve site inspections, photos, reports, or expert opinions. If you disagree with the outcome, you can obtain your own expert evidence to support your claim.

Common Outcomes of Home Insurance Claims

Once your home insurance claim is accepted, your insurer must either:

• Repair or replace the damaged property through their suppliers.
• Offer a cash settlement, leaving you to arrange repairs yourself.

Each option has pros and cons:

• Insurer repairs – includes a lifetime warranty on the repairs from the insurer but you have to use the insurer’s contractors.
• Cash settlement – gives you control but requires you to manage trades and does not include the insurer’s warranty (only a builder’s warranty). 

Always check the scope of works or settlement offer carefully before signing.

If Your Home Insurance Claim Is Declined

Insurers may reject home insurance claims for reasons such as:

• No valid claim (damage not caused by an insured event).
• Policy exclusions (e.g. wear and tear, defects, atmospheric conditions).
• Non-disclosure or misrepresentation.
• Policy not active at the time of damage.

If this happens, you have the right to:

• Request all evidence and reports relied upon.
• Ask for clarification in writing.
• Challenge the decision through the insurer’s complaints process.

Complaints and AFCA

If you’re not satisfied with the outcome of your home insurance claim, you can escalate the dispute to the Australian Financial Complaints Authority (AFCA). AFCA can order insurers to:

• Pay claims in full or in part.
• Increase settlements.
• Compensate for poor claim handling or delays.

Importantly, AFCA’s decisions are free for consumers and binding on insurers.