Unsure about home insurance claims? Learn how the process works and how to prevent claims in the first place.
For many people, their property is their most valuable asset. Therefore, in the event that your home is damaged, or worse, destroyed, due to events outside of your control, it is critical to have a safeguard in place in the form of home insurance. The same goes for contents insurance to replace your possessions in the event of theft, damage or loss.
This guide's purpose is to give you a clearer understanding of how home insurance claims work so that you can ensure your home and possessions have the adequate amount of cover and to help you avoid some common pitfalls that can result in payment shortfalls or long delays in having your claim processed.
What can home insurance cover me for?
Home insurance is protection for your home in the event that it is damaged or destroyed. There are three main policy types available in Australia which are home insurance, contents insurance and combined home and contents insurance. Additionally, home insurance and contents insurance have two different ways in which they will cover your expenses in the event of a claim.
Compare home insurance policies online
| Policy type and what it covers | Policy compensation methods |
|---|---|
|
|
|
|
|
|
How does the home insurance claims process work?
Home insurance is basically a promise of financial assistance if your home is damaged or destroyed and lodging a claim is the act of calling on your insurer to honour that promise (providing the terms and conditions of the agreement have been met by you).
- Step 1. Contact your insurance company via phone or online as soon as reasonably possible after the event occurs.
- Step 2. Fill out and submit a claim form. Many insurers allow you to do this online but you can also do it over the phone. You should receive a claim number once you submit your form.
- Step 3. The insurer will send a representative to your property to assess the damage, arrange any emergency repairs if necessary and obtain job quotes from their network of builders and repairers.
- Step 4. Once your claim has been processed your insurer will notify you of the outcome.
- Step 5. The insurer approved builder or repairer will contact you directly and work will commence as soon as possible.
- Step 6. When the job is complete, the insurer will pay the builder or repairer and you will be free to move back into your home.
Why is taking stock of my possessions so important?
Creating an inventory of your home and contents is vital as many insurers require you to submit one if you lodge a claim, which means having an out-dated and incomplete inventory, or none at all, can result in lengthy delays as their ability to properly assess the value of your items is hindered.
The most straightforward method of putting one together is to go through your property room by room and make a record of your possessions and their approximate value. Some additional advice to help you develop your inventory include:
- Keeping the receipts or other proof-of-purchase documents of items.
- Taking photographs of items to provide additional evidence of ownership.
- If you aren’t sure of the value of more expensive items such as jewellery and artworks consider having them professionally appraised.
- Remember that some items, such as antiques, may increase in value over time, so make sure to have them reappraised every few years.
- Make an effort to regularly update your inventory as you replace old items or buy new ones. Keep your photo inventory up-to-date as well.
- A range of computer software and smartphone apps created for the purpose of home contents inventory management are now available, such as iTrackmine, Delicious Library, MyHome Pro, Box It Up and Evernote.
Are there any practical measures I can take to avoid home insurance claims?
While home insurance, like most insurance policies, are there as safeguards against the unplanned and unexpected, there are some simple precautions you can take to avoid some of the most common causes of home insurance claims.
Final things to keep in mind
To give yourself the best possible cover and ensure that your claims are processed quickly and successfully, remember to:
- Equip your home with safety and security devices approved by your insurer such as alarms, CCTV and Residual Current Devices (RCD).
- Add cover to your policy for floods, fires or cyclones if you live in an area prone to such events.
- Avoid making small claims you could easily pay yourself, as these can push your premiums up.
- Not leave your home unoccupied for more than 60 days, as it may not be covered by your insurance.
- Always file your claim as soon as possible, as further damage due to delays may not be covered.
- Always have any temporary or emergency repairs approved by your insurer or they may not be covered.
Looking for home insurance? Compare policies from Australian providers
Image: ShutterstockGet the latest home insurance news
Greater transparency for home and contents insurance
Insurers in NSW to be required to display previous year's premiums from 1 July 2019. Read more…
You’ll never guess the household item with the highest insurance value
Pot plants are second only to artwork. Read more…
NSW home insurance premiums set to hike after levy increase
More than 10,000 policyholders could end up dropping their cover as a result. Read more…
My insurer has had an inspection done after my house suffered from significant hail damage. Butthe scope of work doesnt cover a lot of stuff that needs to be fixed, some rooms have been neglected entirely (e.g. kitchen which had extensive flooding).
Am I able to get a 3rd party assessor or someone to review the scope of work and put something back formally to the insurer?
Thanks,
Warren
Hi Warren,
Thanks for reaching out to Finder! A very important step in this process is to check the terms and conditions of your policy and see where you stand in this situation. Also, before letting a third party assessor review the scope of work on your house, it would be best to contact your insurer and see if it’s possible to have a reassessment since you were not satisfied with their initial assessment. During the process, you can ask them if they will allow a third-party assessor.
Hope this helps!
Best,
Nikki
On 2nd July my home was totally destroyed by fire. On 8th August the insurance company began getting quotes from their network of builders but it is now 22 September and i have had no word on my claim being processed. How long can it take ?
Hi Robert,
Thank you for leaving a question.
Insurers are required to comply with the General Insurance Code of Practice. Section 7.10 of the Code states that an insurer must decide to accept or deny your claim within 10 business days of receiving the claim. If the insurer decides it needs further information or an assessment to decide your claim, then the insurer must notify you within 10 business days of receiving the claim:
What further information is required;
If a loss assessor needs to be appointed; and
An estimate of the time required to make a decision.
You may send a letter of dispute or a complaint letter addressed to the insurance company to follow-up on your claim.
Hope this helps!
Cheers,
Reggie
In the event of a burglary where a window/door is damaged to enter the property and contents were stolen, where home & contents insurance is in place with the same insurer would only one excess be payable or would two excesses be applicable?
Hi Adam!
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
Since there are separate policies for home = window/door damage and another contents insurance = for stolen contents then you would two (2) excess payables.
Here are the steps on how to claim from your insurance provider:
Step 1. Contact your insurance company via phone or online as soon as reasonably possible after the event occurs.
Step 2. Fill out and submit a claim form. Many insurers allow you to do this online but you can also do it over the phone. You should receive a claim number once you submit your form.
Step 3. The insurer will send a representative to your property to assess the damage, arrange any emergency repairs if necessary and obtain job quotes from their network of builders and repairers.
Step 4. Once your claim has been processed your insurer will notify you of the outcome.
Step 5. The insurer approved builder or repairer will contact you directly and work will commence as soon as possible.
Step 6. When the job is complete, the insurer will pay the builder or repairer and you will be free to move back into your home.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki
Our insurance accepted the accidental fire damaged claim of our home garage. But the rebuilding has been delayed. The claim was accepted in January and still the building has not completed yet. Up to present, the builder has done maximum 50 present of the total job. We are frustrated with such delay because we need to sell this house, pay the mortgage and move to our second house. Therefore, we lost a lot of many because of this delay.
I should be most grateful if you would advise me what course of action I should take and whether we are entitle to some compensation.
Thanks,
Khalil
Hi Khalil,
Thanks for your inquiry.
After you file a claim with your home insurance provider, an adjuster will usually visit your home and inspect the damage. He or she will decide how much the insurance company will pay toward your claim. Often, you’ll get an advance against the total amount your provider is paying. It would be best to recheck the terms and conditions of your insurance to fully know what eligible claims and compensations you may be entitled to.
Hope this information helped.
Cheers,
Arnold