Home insurance (building insurance) covers the cost of rebuilding or repairing your home when something goes wrong.
When you need to make a claim, your insurer must handle your claim efficiently and fairly.
Most insurers will have simple online instructions to step you through what to expect when you make a claim. So if you have internet access, head to their website to check what to do first.
Otherwise though, follow these steps to lodge a claim.
Never forget that this is your house. At all points in the claims process, don’t hesitate to ask questions of the insurer if you don’t understand something and to seek advice if you need it. Don’t feel pressured to accept a scope of works or a cash settlement without access to all relevant information.
Step 1. Do a quick review of your insurance policy
If you have it handy and you have the time, have a quick read of your insurance policy, to refresh yourself on what is – and isn’t – included in your cover.
Make a list of any questions you want to ask your insurer, so that you don’t forget them when you call. Some questions you might want to ask your insurer at the outset include:
What will my excess be? The excess is the amount of an insurance claim that you have to pay, before the insurer pays the balance. The amount will be specified in your insurance policy.
Do you provide temporary accommodation? Ask your insurer about temporary housing or accommodation if your home has been destroyed, or damage has made it unliveable.
Do you have preferred repairers, or can I chose my own? Many insurers have preferred repairers and suppliers and can arrange repairs for you. You may also have the option to chose your own preferred repairers.
Step 2. Contact your insurer
Contact your insurer as soon as practical after the event happens, even if you don’t know the full extent of the damage yet. Some types of policies may have time limits to lodge a claim, so check your policy.
Ideally, have your policy number handy when you contact them, to speed up the process.
If the damage is caused by criminal activity, contact the police as well.
If the event is part of a wider natural disaster, you may find that your insurer’s phone lines are busy. Lodging your claim online either via their website or app could speed up the lodgement process.
Speak to your insurer before doing emergency repairs
Talk to your insurer before you spend money on temporary repairs after an incident.
Many insurers have preferred repairers and suppliers and can arrange emergency repairs for you. This can include things like removing loose debris or installing a roof tarp.
Step 3: Take lots of photos and videos
The insurer will assess the claim, but it’s worthwhile to have your own photos and videos as a record of the damage.
Sometimes you might need to do some minimal repairs before your insurer has started their process (for example, boarding up a door, or throwing out waterlogged carpet). Before you move anything, take photos and video of the original damaged state.
Step 4. Start the claim
Ask your insurer to give you details about the key features of your insurance, including inclusions and exclusions, excesses, and sums insured.
Your insurer will review your claim to see if your policy covers the event or circumstances you are claiming for.
Your insurer may be a subscriber to the Insurance Council of Australia’s General Insurance Code of Practice. The General Insurance Code of Practice sets out what insurers should do when handling your claim. This includes timeframes for making a decision and keeping you updated.
- If you make a claim, your insurer will respond within 10 business days. They will let you know within this timeframe if they need more information, and what that information is.
- They will tell you about the progress of your claim at least every 20 business days.
- The insurer will (except for a few circumstances) make a decision within 4 months of receiving the claim.
If you’re experiencing financial hardship, speak to your insurer. They could give you an advance payment of your claim or defer any excess you may need to pay.
Step 5. Get assessment and decision
The nature of your claim will determine how long it takes for your insurer to make a claim decision. For example, if your claim is more complex and needs specialist reports, the decision may take longer.
If your home has been damaged or destroyed, the insurance company will appoint a Loss Assessor or Loss Adjuster to assess your claim. They will tell you within five business days of appointing that person and let you know what their role is.
Reports from specialists like a Hydrologist or Engineer may be needed to assess your claim. If your insurer engages an external expert, they will ask for the report to be provided in 12 weeks. If that timeframe is not met, the insurer will let you know and keep you updated.
If your claim is denied
If your claim is denied, the insurer must provide in writing:
- what part of your claim they did not accept
- the reasons for their decision
- your right to ask for copies of any reports they relied on to make their decision
- how you can complain about their decision
If you ask for copies of reports used to assess your claim, your insurer must send them to you within 10 business days.
Claims after a natural disaster
If your claim is because of a natural disaster, and was finalised within one month of the event, you have the right to ask for a review. You have 12 months from the date of finalisation of your claim to request this if you think the assessment of your loss was not complete or accurate.
You can do this even you have agreed to the settlement.
You can complain to your insurer if you are not satisfied with how your claim is progressing. See how to complain for the steps you can take.
Step 6. Review the scope of works
If your claim is approved, and involves rebuilding or repairs, you will get a written report you will need to review and sign. This is known as a 'scope of works' or 'statement of works'.
This sets out the repair or rebuild work that will be done, and the products that will be used.
Make sure you check:
- what will be repaired or replaced
- what won't be repaired or replaced
- the materials being used
- any dependencies on the work being done. For example, you may need to pay for repairs not covered by your policy before work covered by your insurance starts.
Contact your insurer if you need more detail or aren't happy with what's in the statement of works.
If you can't come to an agreement, you can ask for your claim to go to the insurer's internal complaints team.
Step 7. Repair or rebuild
To settle your claim, your insurer may offer to:
- handle the repairs or rebuild of your home
- offer you a cash settlement, or
- a combination of both.
Insurer managed
If your insurer is managing the repair or rebuild, they will project manage the work for you, including:
- notifying you of the construction schedule
- arranging trades such as builders, electricians, or plumbers
- managing local council approvals, if required.
Your insurer will manage communication between all parties and oversee the work. Your insurer is responsible for the quality of work and materials used by anyone directly authorised by them.
You can complain to your insurer about builders or other contractors if their conduct or work completed doesn’t meet your needs.
Cash settlement
By opting for a cash settlement, you are responsible for managing the repair or rebuild process yourself. This includes sourcing and managing contractors or building approvals.
You may be left out of pocket if the repairs and costs are more than the cash settlement.
If you decide to manage the works yourself, make sure you comply with council regulations and building codes. Always use a licensed builder. If you don't, your home may not be insurable.
Review your insurance cover regularly, to help avoid being underinsured. Try the contents calculator and building calculator on the Insurance Council of Australia website, to estimate the amount of insurance you might need.