Most Australians have never made a home insurance claim. When something goes wrong, that unfamiliarity costs them. They wait too long, miss steps, or accept a settlement offer that is lower than it should be. This guide walks through the process in the right order.
Most policies require you to notify your insurer within 30 days of an incident. For minor damage, that gives you time to document things properly. For major damage, theft, a break-in, or anything requiring emergency repairs, call the same day. Delay gives the insurer room to question whether the damage occurred when and how you say it did. When in doubt, call early.
Before you touch anything, take photos and video. Get wide shots of the damage, close-ups of every damaged item, and anything that shows what caused the incident, whether that is a broken window, a burst pipe, or a storm-damaged roof. Do this before any clean-up, because what the assessor sees at the time of their visit should match your photos.
Write a list of every item damaged or destroyed. Include a description, approximate age, and your best estimate of its original purchase price. If you have receipts, warranty cards, or serial numbers, collect those now. For high-value items like jewellery, art, or electronics, dig up any purchase records you have. The stronger your proof of ownership, the harder it is for the insurer to push back.
You cannot lodge a home insurance claim for theft or a break-in without a police report. Call your local police station (or report online at police.gov.au in most states) and ask for a police event number. This is not optional. Write the number down, as the insurer will ask for it when you call. For vandalism, the same applies.
Have the following ready before you dial: your policy number (on your renewal notice or policy documents), the date and approximate time the incident occurred, and a brief description of what happened. Keep the description factual. Do not speculate about cause if you are not certain. The person you speak to is logging your initial statement, and what you say now will be compared against what you say later.
The insurer will give you a claim reference number. Write it down and keep it. Every subsequent conversation should reference that number.
If the damage creates an immediate risk, for example a tree through the roof, a broken entry door, or a flooded floor, most policies cover the cost of emergency temporary repairs to prevent further damage. This typically means boarding up windows, tarping a damaged roof, or calling a plumber to stop a burst pipe.
Keep every receipt. Take photos before, during, and after the repair work. Do not carry out permanent repairs until the insurer or their assessor has approved them. Doing permanent work before the assessor visits can complicate your claim significantly.
For anything beyond a minor claim, the insurer will send a loss assessor to inspect the damage in person. In some cases they send a builder to quote the repair work. The assessor works for the insurer, not for you. Their job is to establish what happened, confirm that it is a covered event under your policy, and form a view on the repair or replacement cost.
Prepare for the visit by having your documentation ready: photos, your list of damaged items, police event number if relevant, and any receipts for emergency repairs. Walk the assessor through the damage methodically. Do not minimise anything. If you have items that were damaged but have since been disposed of (broken crockery, soaked mattresses), make sure you have photos.
Typical timeframe from claim lodgement to assessor visit is 5 to 20 business days, depending on the insurer and how severe the event was. In the aftermath of a major weather event affecting thousands of homes, it can take longer. Ask the insurer for an estimated timeframe and follow up if that deadline passes.
Once the assessor has reported back, the insurer will make a settlement offer. This usually comes in one of three forms: cash settlement (they pay you the assessed value and you arrange repairs yourself), repair (they appoint a builder or repairer and manage the work), or replacement (for contents, they replace the item or pay you its current replacement value).
You can negotiate. If you believe the cash settlement figure is too low, ask the insurer to break down how they reached the number. Get your own builder's quote if you dispute the repair cost estimate. You are not obligated to accept the first offer.
The event is not covered. Home insurance covers sudden, unexpected events. It does not cover gradual deterioration, rust, rising damp, rot, or wear and tear. If water has been leaking into a wall for months and eventually causes damage, the insurer may classify that as gradual damage rather than a sudden event, and deny the claim. The distinction between sudden damage and gradual damage is one of the most common points of dispute in Australian home insurance.
Failure to maintain the property. If the damage happened partly because the property was not kept in reasonable condition, the insurer has grounds to decline. Common examples include a roof that was visibly deteriorating before a storm, gutters blocked with debris, or cracked seals around windows that let water in.
No proof of ownership. For contents claims, the insurer needs evidence that you actually owned the item. If you cannot demonstrate that with receipts, bank statements, photos, or warranty records, the claim may be denied or reduced.
Late lodgement. Notifying your insurer well after the 30-day window gives them grounds to question the claim. Always notify early.
If your insurer declines your claim and you believe the decision is wrong, you can complain to the Australian Financial Complaints Authority (AFCA) at afca.org.au. AFCA is free for consumers and can award binding outcomes against insurers. Before going to AFCA, ask the insurer for their internal dispute resolution process. They are required to have one. If that does not resolve it, AFCA is the next step. AFCA handles thousands of general insurance complaints each year and frequently finds in favour of consumers.
This one catches people even when their claim is legitimate. If your home is insured for less than its actual rebuild cost, your insurer may apply what is known as the averaging clause (also called co-insurance). Under averaging, your payout is reduced proportionally.
Here is how it works in practice. If your home would cost $900,000 to rebuild but you are only insured for $600,000, you are insured for 67% of the true value. If you then suffer a partial loss, say storm damage costing $80,000 to repair, the insurer may pay only 67% of that: roughly $53,000. You cover the rest yourself.
On a total loss, the underinsurance problem is even more direct. The insurer pays up to your sum insured and nothing more. Use the Insurance Council of Australia's free rebuild cost calculator to check whether your current sum insured reflects actual rebuild cost, not market value, and review it every two years as construction costs change.
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