Understanding what events and damage are covered by insurance can help you get the right cover for your home.
Find out if you live in a disaster-prone area
It's devastating when a natural disaster destroys or damages your home. Finding out you don't have enough insurance can add to your distress.
Knowing if you live in a disaster-prone area can give you a better understanding of your risk. This helps you choose coverage for the events that are most likely to happen to your home.
To find out if your home is in a natural disaster-prone area, contact:
- your insurance company
- your local council
- an emergency services organisation in your state or territory
Ask them about flood mapping, historical flood records, and the Bushfire Attack Level (BAL) of your home. If you contact your council, ask them whether your house meets natural disaster standards.
If you live in North Queensland, visit the Australian Government's North Queensland home insurance website. This site helps you compare home insurance policies based on where you live.
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.
Learn about storm cover
Most home insurance and contents insurance covers storms. This includes damage caused by lightening, cyclones, strong winds, rainwater, hail and snow.
Rainwater is usually defined as water that falls from the sky. Cover usually includes damage caused by:
- rainwater run-off — excess rainwater that collects and flows in normally dry areas
- rainwater that overflows from stormwater drains
Learn about flood cover
There's a standard definition of flood for home and contents insurance. It is:
“The covering of normally dry land by water that has escaped or been released from the normal confines of:
- any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
- any reservoir, canal, or dam.”
If your home is at a high risk of flooding, your insurance costs will be higher – or flood cover might be excluded from your policy.
If you're not sure what cover you have, ask your insurer or read your policy's product disclosure statement (PDS).
Learn about fire cover
Most home and contents insurance covers you for damage caused by fire, including bushfire.
Generally, a flame has to cause the damage. This means you're not covered for heat-related damage, like scorching and melting, or smoke, ash and soot damage. For example, if your home is damaged by smoke or heat from a nearby fire or bushfire.
Common exclusions from fire insurance include:
- A bushfire that occurs less than 72 hours after you bought your policy.
- Intentional fires.
- Accidental fires caused by negligence or recklessness.
- If your house doesn't comply with fire regulations, for example a heater isn't installed properly.
CHOICE provides more information on the definition of fire and how to check it in your policy’s PDS.
You can never remove the risk of being affected by a natural disaster. But you can take steps to help reduce the impact. Read our guidance on preparing for and dealing with natural disasters.