Bushfire insurance

What is bushfire insurance?

'Bushfire insurance' is not an insurance product on its own. Rather, home insurance policies exist and they can provide cover for bushfires.

All home insurance policies include cover for fire as standard. This includes bushfires or other accidental fires The exact definition of what kinds of fires your insurer covers will be available in your product disclosure statement (PDS).

Typically, you will not be covered for bushfires in the first 72 hours of purchasing your policy. Additionally, damage as the result of scorching or melting will not be covered under 'fire' if there were no flames. See your PDS for a full list of exclusions, terms and conditions.

Navigating insurance in high-risk zones beyond bushfire contexts requires an understanding of how insurers categorise different perils. Most standard policies in Australia provide broad-spectrum coverage for high-risk perils like storms and earthquakes as part of their base offering.

However, coverage for floods is frequently treated as an optional add-on or may be excluded entirely depending on the specific location of the property. This distinction is critical because while a storm might be a standard inclusion, a flood (defined as water escaping from the normal confines of a lake, river, or dam) often requires a separate selection on your policy application.

Compare home insurance with bushfire cover

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Finder Score	Fire, Storm & Theft Damage	Flood	Accidental damage	Escape of Liquid
Promoted Finder score 9 Excellent Youi Building and Contents Insurance Most Loved	Finder score 9 Excellent			Optional		Our verdict: With a a range of customisation options, Youi Building and Contents Insurance is a great pick for homeowners after a policy that allows them tailor their coverage.	Get a quote View details Compare product selection Compare	loading
Promoted Finder score 9.2 Excellent QBE Home & Contents Insurance	Finder score 9.2 Excellent			Optional		Get 20% off your first year with a combined policy. T&Cs apply.	Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft.	Get a quote View details Compare product selection Compare	loading
Promoted Finder score 9.1 Excellent Budget Direct Home & Contents Insurance Most Loved	Finder score 9.1 Excellent		Optional add-on	Optional		30% off your first year's premium for new combined Home & Contents policies purchased online. T&Cs apply.	Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover.	Get a quote View details Compare product selection Compare	loading
Finder score 8.7 Great Honey Home & Contents Insurance	Finder score 8.7 Great			Optional		Get $250 worth of smart sensors with a combined policy. T&Cs apply.	Our verdict: This policy is ideal for customers looking for reasonably priced coverage across a range of categories.	Get a quote View details Compare product selection Compare	loading
Finder score 9 Excellent Westpac Home and Contents Insurance	Finder score 9 Excellent			Optional		Our verdict: Provided by Allianz, one of the biggest insurers in Australia. Cover for fire, theft, storm, cyclones and more.	Get a quote View details Compare product selection Compare	loading
Finder score 9 Excellent Qantas Home and Contents Insurance	Finder score 9 Excellent		Optional add-on	Optional		Earn up to 35,000 Qantas Points for joining by 1 April 2026. Plus save 30% on your 1st year’s premium for purchasing a combined home and contents policy online. T&Cs apply.	Get a quote View details Compare product selection Compare	loading
Finder score 7.4 Great Huddle Black Home and Contents Insurance	Finder score 7.4 Great					Save up to 10% on your policy in the first year. T&Cs apply.	Get a quote View details Compare product selection Compare	loading

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Finder Score - Home insurance

We crunch eligible home insurance products in Australia to see how they stack up. We rank over 50 products on 16 different features, including price. We end up with a single score out of 10 that helps you compare home insurance a bit faster. We assess home and contents, building only and contents only products individually.

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What are you covered for with bushfire insurance?

This depends on what kind of policy you’ve purchased. See some examples below.

• Home building insurance. If just your building is insured with home insurance then your building will be covered for damages or loss as the result of fire.
• Contents insurance. If you have contents insurance only and they become damaged by fire, then your belongings will be covered.
• Home and contents insurance. If you have a combined home and contents insurance policy then both your home building as well as your belongings inside will be covered under the policy if they become damaged by fire.

Exactly how you're covered will depend on the specifics of the policy you took out. You can choose to be covered up to a specific sum or for total replacement. In the event of a loss, for example — your house burns down as the result of a bushfire — your insurer will settle your claim based on what you've selected.

What to keep in mind when buying home insurance in bushfire prone areas

If you're in a bushfire prone area, buying home insurance may be difficult. Because of the increased risk, insurers will likely charge you a higher premium, or some may refuse to offer you cover at all.

If you are able to get cover, here's a few things to consider when you're taking out a policy.

• Underinsurance. Underinsurance is a big issue facing Aussies. This is when the sum insured on your home insurance policy isn't enough to cover the cost of repairs or an adequate replacement for your home in the event of a loss. When taking out a home insurance policy, be sure to appropriately calculate the cost of a rebuild. Many insurers have a calculator to help you estimate this amount.
• Total replacement policies. Some insurers offer a total replacement option. This can be preferred over a 'sum insured' option as it ensures your home can be rebuilt as it was, or you can be paid out for the cost to do this. It can be a great way around concerns about accidental underinsurance.
• Contents value. When assessing the value of your home, be sure to consider the value of your contents if you're taking out a combined home and contents insurance policy. Your contents doesn't just mean your TVs and computers. It's also your oven, washing machine, vacuum. These items are expensive and can be costly to forget.

Actionable risk mitigation strategies for property owners

Implementing risk mitigation strategies is a proactive way to manage property safety and potentially influence insurance outcomes. For bushfire risks, this involves creating defensible spaces by managing vegetation and using non-combustible materials for external structures like decks and fences. In flood-prone areas, owners should focus on elevating critical utilities such as electrical switchboards and hot water systems above the historical flood level for their specific block.

Home improvements and retrofitting for premium reduction

Specific home improvements and retrofitting can lead to a premium reduction with certain insurers. Retrofitting measures include installing ember-proof metal mesh (apertures of 2mm or less) on all vents and sealing gaps larger than 3mm in external surfaces. For storm and cyclone protection, reinforcing garage doors with wind locks or installing storm shutters can lower the risk profile of the building. It is advisable to contact your insurer directly to confirm which specific upgrades they recognise for discounts, as these vary significantly across the market.

Specialty and niche insurers for non-standard risks

When standard providers decline a policy due to extreme risk, homeowners may need to look toward specialty and niche insurers. These providers specialise in non-standard risks (including properties with adverse claims histories or those in extreme high-risk zones). Accessing these insurers often requires the assistance of a specialist insurance broker who can navigate the wholesale market and negotiate tailored terms that are not available through direct retail websites.

Alternative coverage options for homeowners declined by standard providers

If you are declined by standard providers, alternative coverage options might include "first-loss" policies or policies with higher-than-average excesses. Some specialist brokers can also look into Domiciled Offshore Foreign Insurers (DOFIs) for unique risks, though these carry different regulatory considerations. Additionally, investigating state-based resilience programs (such as the Disaster Ready Fund) can sometimes provide the necessary support to make a property more insurable through government-funded mitigation works.

Structured cost management frameworks for high-risk premiums

Managing high-risk premiums requires a structured cost management framework. This includes opting for a higher voluntary excess to lower the annual premium and ensuring you are not paying for unnecessary "extras" like accidental damage if the base premium is already high. Homeowners should also verify that their insurer has the most up-to-date data on any local mitigation works (such as new levees or hazard reduction burns) which may not yet be reflected in the automated pricing algorithms.

Other insurance to be mindful of for bushfire prone areas

Our expert says

"If you're in a bushfire prone area then you may want to assess more than just your home insurance. If you own a car, then it's worth checking what level of car insurance you have on it. Only a comprehensive or a third party fire & theft policy will cover you in the event of a bushfire."

Peta Taylor

Publisher of Insurance

FAQs

• Is home insurance more expensive in bushfire prone areas?

  It can be. This is because the insurer is taking on more risk to insure you and will therefore increase your premiums.

• What is the waiting period for claiming on home insurance for bushfires?

  In most cases, this will be 72 hours. This can change between providers so it's worth checking your product disclosure statement (PDS) or checking with your insurer directly. They'll likely have this information on their website.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 576 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio