The first step is understanding your risk. Risk means the chance that a disaster like a flood, storm or bushfire could damage your home. Risk changes over time. A home bought 15 years ago may have been low risk, but that risk could be higher today. It's your responsibility to know the risks that could affect your home right now.
Visit AreYouCovered.vic.gov.au and enter your address. It's quick and easy. Even if your home isn't directly in a high risk zone, it's still wise to be prepared, especially if you live nearby. Keep in mind, this map does not take into account your personal circumstances. For more detailed local information, check your local council's website and the site of your Catchment Management Authority. Most water authorities have a flood portal where you can find specific information about your property's flood risk.
Do you know what it would cost to rebuild your home today? Ten years ago, it would have been much cheaper. So you need to make sure you update your sum insured every year. Use an online building calculator to estimate how much it would cost to rebuild your home. Just head to AreYouCovered.vic.gov.au, click the link to the calculator and enter your address. Keep in mind - this is only an estimate. It might not cover everything.
Costs of labour and materials may have increased since you last checked. It's important to review your cover regularly to make sure it's enough.
Next, check your sum insured amount on your Product Disclosure Statement or PDS. You'll find a dollar figure listed — that's your sum insured. If that number is lower than the estimate from the building calculator, you could be under insured.
When rebuilding, you need to factor in:
- Updated building codes.
- Site challenges.
- Rising labour and material costs.
- Demolition and asbestos removal.
- Council fees.
- Architects and surveyors.
- Temporary accommodation – Where will you live while you rebuild?
Make sure your sum insured amount matches your rebuild cost.
Insurance policies don't all cover the same things. Understanding your coverage means knowing what's included and what's excluded.
Get to know your insurance by asking your insurer these questions:
- What does my policy cover?
- How do they define disasters?
- Do I have sum insured or total replacement cover?
- Does it include temporary accommodation?
- Does it include pet boarding?
- Are cleanup costs included?
- What exclusions apply?
- Are there payout limits for certain claims?
- What is the excess?
- Does it cover extra rebuild costs like demolition and asbestos removal?
If you're unsure, ask your insurer to explain it. Helping policy holders is part of their job.
One. Contact your insurer.
Get in touch as soon as you can. You don't need all the details yet.
Two. Make your home safe.
Don't enter or switch the power on until you're sure it's safe. Contact your insurer. They may need to arrange safety checks. Take photos before you start cleaning.
Three. Damage assessment. An assessor and sometimes
engineers or experts will inspect the damage and determine the cause. Read your Scope of Works carefully. It may change if more damage is found later.
Claim review. Not happy? You can ask for a review at any stage.
Claim settlement. If approved, your insurer may: Manage repairs or rebuilding with a licensed builder, or offer a cash settlement.
It's important to consider these options carefully.
You may need to get quotes and check building regulations to make sure the settlement offer will cover your full costs.
It's also a good idea to seek independent financial advice. Your local community legal centre
may also be able to help.
If your claim is denied or you are unhappy with the outcome, you can make a complaint to your insurer at any stage of the claims process. And if your claim is rejected, your insurer must explain why and let you know how to lodge a complaint.
If you need help with financial matters, a financial counsellor may be able to assist.
Financial Counselling Victoria provides a free, confidential, and judgment-free service for anyone experiencing or at risk of financial hardship.
There are no restrictions based on income, visa or residency status. If you or someone you know is worried about a debt or bill, a financial counsellor could help.
If you're not satisfied with your insurer and want to make a complaint, contact the Australian Financial Compliance Authority on 1800 931 578 or email info@afca.org.au.
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