Bush Fire Insurance
Most people don’t know what it costs to re-build if they lose their property. Many people who lost their homes in the 2019–20 bush fires were underinsured, which made rebuilding very difficult (Insurance Catastrophe Resilience Report: 2020-21).
Before bush fire season you should:
- Make sure you have enough insurance cover to avoid severe financial loss if your home or contents are destroyed by bush fire. Shop around for the best policy that suits your individual circumstances.
- If you are concerned about the potential total loss of your property, speak to a reputable builder and get a quote for the cost of a complete rebuild. Once you have this, speak to your insurer and make sure your sum insured covers this cost.
- Reassess the value of your home and contents, vehicles and any outbuildings you have on your property, and the level of cover you need to financially protect them.
- Conduct a household contents inventory (take some photos and videos) to make sure valuable assets are adequately protected and ensure the cover matches the value of these assets.
- Make sure you understand what cover you have, as well as any exclusions or limits that may be a part of your insurance policy. It is important to be aware of these exclusions and to query your insurer about any part of a policy you do not understand.
These steps are recommended by Insurance Council Australia.
For further information on household insurance in the event of a bush fire – visit links and resources provided below.