Your Home
A recent survey found that 80% of households were underinsured. Imagine losing everything you own and not having enough money to rebuild. Rebuilding after a fire may cost you a lot more than you think. It will depend on your Bushfire Attack Level (your BAL). If you are not sure what your BAL is you can check with your Local Council or the Rural Fire Service.
Your insurance cover
There is a limit to the amount of money that the insurer will pay to repair or rebuild your home. This is called your ‘sum insured’. Building costs are constantly increasing. Also, the higher your BAL, the more your building costs will be. This is because your home may need to be rebuilt to a higher standard. Talk to your insurer about what the right level of cover is for you. You can also use their online calculators to find out.
Your policy terms
Each insurance policy is different. Some policies allow up to 30% extra if your building costs blow out. Many policies don’t have cover for ember, smoke or melting damage, unless flames reach your home. Check your product disclosure statement. And get covered early. There are limits on buying insurance once a fire has started. It is worth shopping around to get the right policy for you.
My checklist
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I've read my Product Disclosure Statement and schedule
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My sum insured for building is
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I’ve checked my sum insured against an online rebuilding calculator
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My BAL rating is
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My sum insured for contents is
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I’ve checked my sum insured against an online calculator
Where can I get more help?
| Organisation | Information | Contact details |
|---|---|---|
| Disaster Response Legal Service NSW | If you’ve been affected by a bushfire, storm or flood, we can help you with everyday legal problems including insurance claims and disputes, financial hardship, tenancy and Centrelink. | Website: www.disasterhelp.legalaid.nsw.gov.au |
| Insurance Law Service Financial Rights Legal Centre | Specialises in credit/debt matters. For legal advice call the Legal Advice Line or visit their website. | Phone: 1300 663 464 Website: www.financialrights.org.au/getting-help/insurance |
February 2020