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Why home insurance matters

Victoria is a great place to live. But now and then, we face storms, floods and bushfires.

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We know that many Victorians will face these emergencies, as well as house fires, storm damage or water damage to their homes.

If you and your family were affected by an emergency, could you repair, replace or rebuild your most valued possessions?

Insurance gives you peace of mind and helps you bounce back financially if an emergency does affect you. Getting insurance is easy if you follow our four steps.

Step 1: Know your risk

Think about the risks where you live. What would happen if you lost everything and didn’t have enough insurance? To find out about your risk, you can:

  • Contact your insurance company
  • Contact your local council
  • Visit the ‘Prepare and Get Ready’ section of the VicEmergency website

To learn more about storm, flood or fire insurance, visit the Moneysmart website.

Step 2: Know your costs

Do you know what it would cost to rebuild or replace your possessions?

The Insurance Council of Australia has several calculators you can use to estimate the cost to replace your contents or to rebuild.

Visit the Insurance Council of Australia website.

Step 3: Know your cover

Home insurance covers the cost of repairing or replacing your house when something goes wrong. When buying home insurance, price is important, but not everything. Focus on what you need, and what is (and isn't) covered by different policies.

Visit the Moneysmart website.

Step 4: Know how to claim

Home insurance (building insurance) covers the cost of rebuilding or repairing your home when something goes wrong.

Homeowners often bundle their home insurance into a combined 'home and contents' policy to cover both home and belongings.

Your insurer must handle your claim efficiently and fairly. Follow the steps on the MoneySmart website to lodge a claim.

Tips for managing premiums

  • Increase your excess - One way to reduce the amount of the premium you pay is to agree to take on a certain proportion of the risk by increasing your excess. In general, a higher excess will mean you pay a lower premium.
  • Lower your risk - Many insurers may offer you a cheaper premium if you take steps to lower your risk. You may receive a discount on your home and contents policy if you have security devices in place such as window locks and deadlocked doors.
  • Talk to your insurer - Providing additional information to the insurer about your specific risk may also allow your premium to be reviewed. You can also ask your insurer about how you might be able to lower your premium.
  • Shop around - Each insurer will offer products that differ from those offered by other insurers, with variations in the coverage, terms and conditions, exclusions and costs.
  • Ask if you qualify for any discounts - Some insurers may offer discounts such as a no-claims or multi-policy discount if you have two or more policies with one company.
  • Pay your premium annually - If you pay your premium in instalments, it generally costs you more than if you choose to pay your premium in one annual lump sum payment.
  • Banks and insurers have special teams to help you if you have money worries. Call your financial institution, or visit their website and find the ‘Financial Hardship’ link.
  • Phone, water, gas and electricity companies, all have options for customers in financial difficulty.
  • If you have issues you can’t resolve with these companies, you can contact the Telecommunications Industry Ombudsman (TIO) on 1800 062 058 or visit the TIO website, the Energy and Water Ombudsman Victoria (EWOV) on 1800 500 509 or visit the EWOV website. If you are renting, check your rights with Tenants Victoria, call 03 9416 2577 or visit the Tenants Victoria website.
  • Good Shepherd provides safe, fair and affordable financial services for people on low incomes. Call 13 64 57 or visit the Good Shepherd website. No Interest Loan Scheme (NILS) offers loans up to $2,000 for essential goods like fridges, washing machines and furniture. There are no fees or charges.
  • Charities such as Red Cross, St Vincent de Paul, the Salvation Army, and Wesley Mission may be able to help with food, shelter and household items.
  • Following major emergencies, local, state or federal governments may provide some financial support but this is usually limited.
  • If you need help with a claim or want to dispute a claim, and can’t reach an agreement with your insurer, you can take your complaint to the Australian Financial Complaints Authority (AFCA). Call 1800 931 678 or visit the AFCA website.
  • Consumer Action Law Centre provides free legal advice and pursues litigation on behalf of vulnerable and disadvantaged consumers across Victoria. Visit the Consumer Action Law Centre website.
  • Disaster Legal Help Victoria provides free legal advice, assistance and referrals to Victorians affected by an emergency. Call 1800 113 432 or visit the Disaster Legal Help Victoria website.
  • If you don’t know where to start, you can talk to a financial counsellor at the National Debt Helpline on 1800 007 007 during business hours. You can also get information and resources at the National Debt Helpline website.

Disclaimer

The information on this website is for general information only.

It should not be taken as constituting professional advice from the website owner - the Department of Treasury and Finance (DTF).

DTF is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances.

DTF is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.

Calculators and tools

The calculators and tools linked to on this website are provided for your information and to illustrate scenarios. The results should not be taken as a substitute for professional advice.

All reasonable care has been taken in preparing and designing the calculators and tools; however, DTF provides no warranties and makes no representation that the information provided by the calculators and tools is appropriate for your particular circumstances or indicates you should follow a particular course of action.

We link to external sites for your convenience. We are selective about which external sites we link to, but we do not endorse external sites. When following links to other websites, we encourage you to examine the copyright, privacy and disclaimer notices on those websites.

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