Home and contents insurance FAQ's

If you own a house, then it’s important to get your home and contents insurance sorted to protect your property. There are lots of things to consider before making a decision on your cover and excess. We understand it can feel overwhelming, but we’re on your side to help answer common questions.

As soon as you’ve made an offer on a house and it’s been accepted, you should look at getting home insurance. This should be in place as soon as the purchase is settled, as that's when the house becomes your property, even if you haven’t moved in yet.

This is the contract between you and your insurer and covers all the details of what you’re insured for and what you’re not.

The cost of your home insurance is driven by factors like building material costs, inflation, market conditions and the location of your home. Your premium may go up or down, depending on how these factors have changed since the last renewal of your cover. 

For example, building costs don’t stay the same, and your home insurance premium will change to reflect this. Your premium may also be affected by risks that arise in your specific location that could impact your home. 

We’ll notify you of any change to your premium before your policy renews. If you have any questions about the new amount, you can call us on 0800 100 200 or chat to us on Facebook.

An ‘excess’ is an agreed amount you contribute towards a claim. For example, if you have an excess of $2,000 and your home is destroyed, you’ll need to contribute $2,000 and we’ll cover the rest of the claim costs up to your sum insured. Exceptions apply if you have ‘Replacement’ cover for your home. 

To reduce the cost of your insurance premium, you can choose to increase the amount of excess you pay. A higher excess will mean you have to pay more towards a claim. With a lower excess, your overall premium will be higher, but you won’t have to pay as much at claim time.

Your excess amount needs to suit your circumstances and your ability to contribute to a claim if you need to make one.

You can change your excess anytime in My AMI, your online account, except when a claim is underway.

The cost of home insurance depends on a number of things, such as the age of the home, how much it would cost to rebuild, the location of the house and how much you decide your rebuild costs (sum insured) would be.

So, when a friend says, ‘insurance costs about $XXX’, they are probably basing their information on the cost of insurance for their own house. For an accurate picture of how much your home insurance will cost you, get a quote based on the details of your home.

Before we can provide a home insurance quote, we’ll need to know specific things about your home. You’ll probably be able to find some of the information required in the LIM report, which is commonly provided by the Real Estate Agent who marketed your property.

If your home was built after 1935, you’ll need to provide:

• what year it was built
• what it’s mostly built of
• the floor area, including any outbuildings
• it’s general condition
• information about any retaining walls on the property
• information about certain features such as swimming pools or tennis courts
• information about how steep or flat the section is
• the cost to rebuild your home if it was destroyed. The Cordell Sum Sure Calculator is a helpful tool to use.

If your home was built before 1935, you’ll also need to provide information:

• about whether it’s been recently rewired, replumbed, reroofed, relined or re-piled
• information about any outstanding maintenance issues or unrepaired damage
• about whether it’s classed as ‘historic’, or a ‘heritage building’ or located in a ‘special character’ area.

If you’ve paid off the mortgage on your house, then you’re under no obligation to a lender to have insurance, but there’s still the risk that something unexpected could happen to your home.

Your house can be one of your most valuable assets, and home insurance can provide protection against loss or damage caused by a fire or even a natural hazard – among other things.

It’s important to know that Natural Hazards Cover (previously EQC Cover) doesn’t apply if you’re not insured.

You need enough cover to protect all the things you own, so the amount should be the total value of your possessions. Under-insuring your belongings could mean you don’t have enough to replace them, should you experience a total loss claim – for example, after a flood.

You can use the contents calculator by Sum Insured Pty Ltd to help you figure out the total value of your belongings. This will go up or down as your possessions age or change, so make sure you review the value of your belongings at least once a year before your contents cover comes up for renewal. 

Some items have limited cover, so you may also need to specify special items such as bicycles, jewellery, or cameras on your policy to ensure they have enough cover.

There are a few ways to reduce the cost of your home or contents insurance.

• Remove any optional benefits you don’t need, such as excess-free glass and bathroom fixtures cover, or matching carpet cover.
• Check your sum insured value is accurate. Your sum insured is the most we’ll pay for a total loss claim if your car, home or contents were destroyed. The amount should represent the cost to replace items or rebuild at today’s prices. Some assets decrease in value over time, so check your policy as you may be able to lower your premium by reducing your sum insured amount.
• Increase your excess amount. Your excess is the amount you contribute towards paying for repairs or replacement when you claim. It might be worth asking about opting for a higher excess to help lower your premium. Conditions apply.

It’s important to understand what changing your policy will mean for your level of protection. To talk it over first with a consultant, call us on 0800 100 200.