GUIDES & RESOURCES

Building Insurance

No one enjoys worrying about something happening to their hard-earned possessions, especially when it comes to our property and its vulnerability to random events. Learn more about finding great value Building Insurance with iSelect.
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*iSelect does not compare to all home and contents insurers in the market. The availability of policies may change from time to time. Not all policies made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all policies compared by iSelect will be available to all customers. See below for our range of home and contents insurers. Some policies are only available from iSelect’s call centre or online. Our advice on this website is of general nature and does not consider your situation or needs. Consider if any advice is appropriate for you before acting on it.

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What is Building Insurance?

Building Insurance, also known as Home Building Insurance, can assist in repairing or rebuilding damage caused to insured physical structures that form a home building. Physical structures could include permanently attached fixtures such as showers and solar panels to driveways and light fittings. Our homes and investment properties are often the most significant assets we will own in our lives, so it makes sense that building owners would consider a level of protection that provides peace of mind.

What does Building Insurance typically cover?

With a variety of natural hazards occurring in Australia, it may be important to investigate and understand the levels of coverage that Building Insurance could provide a home or investment property. Building Insurance focuses on damage caused by events such as fires, storms, explosions, vandalism, and specific forms of flooding. This form of insurance could cover the repairs or rebuild of the structure of a home and other constructions on a property such as stand-alone garages, in-ground pools, fences, and sheds.

Building Insurance could also cover fixtures such as:

  • Kitchen cabinets
  • Light fittings
  • Ceiling fans
  • Shutters and curtain rods
  • Air conditioning units and curtain rods
  • Floating floorboards
  • Built-in shelves or bookcases
  • Baths
  • Showers

When considering Building Insurance options, it is important for homeowners to refer to their Product Disclosure statement (PDS) which provides details of inclusions, exclusions and policy limits.

What does Building Insurance typically not cover?

Although not all Home Building Insurance policies are not the same, they could often share similar coverage exclusions. These exclusions could be, but are not limited to:

  1. Wear and tear and accidental damage: General wear and tear and accidental damage, although unintentional, is usually not covered under a Building Insurance policy.
  2. Weather damage: While weather damage could often be the main reason to seek Building Insurance, it is important to note that not all policies will provide you cover for certain weather events such as storms or total flood cover.
  3. Existing Damage: In the circumstance of existing damage a Building Insurance policy is unlikely to cover you for retrospective repairs of rebuilds.
  4. Renovation occurrences: Building Insurance policies often won’t cover damage caused by renovation activities. If a building owners’ renovation is sizable then it could be worth alerting the insurer to discuss renovation intent and the impact it may have on a Building Insurance policy.
  5. Animal Damage: Dogs, cats and pets of all shapes and sizes can enrich our lives in the best ways, but unfortunately the damage they may cause to a home is rarely covered by Building Insurance.
  6. Unoccupied homes: If a home has been left empty for an extended period of time than it may be excluded from certain types of Home Building Insurance cover.
  7. Holiday rentals and guest accommodation: If a person were to use their home to provide holiday rentals or guest accommodation, they may not be covered by their Building Insurance for certain events.

Keep in mind that each Building Insurance policy can differ, and it is important to refer to your Product Disclosure Statement (PDS)  which provides details of inclusions, exclusions and policy limits.

How much does Building Insurance cost?

The cost of Building Insurance can be impacted by a variety of factors but largely considers the potential risks to a property when deciding a policy premium. For example, the state a building is in, the materials used to build a home, the property age, and the location of a home (i.e. living in an area with high crime rates) can impact the cost of a Home Building Insurance policy. Some other factors that may be considered are a person’s claims history and whether optional extras will be included on a policy, such as accidental damage.

What buildings could be more at risk of an insured event?

Although old homes may be quaint, cosy, and full of history they can cause many headaches when it comes to dated wiring, antiqued building materials, and required heritage listed protections. As a result, there may be a higher risk of problems occurring with an older property than with a newer one.

Other buildings that may be more at risk are those in hazardous locations. Some locations within Australia and within a state could be more prone to extreme weather events such as bushfires, storms, flooding, cyclones etc. Consequently, a home’s locale may present a heightened risk of being impacted by an insured event.

If you want more info on your State’s average risk factors, visit your State or Territories guide:

How necessary is Building Insurance?

Building Insurance may be considered by homeowners if they require a certain level of peace of mind or protection when it comes to potential insured and hazardous events. It may also be required by home lenders with consideration to home loan approvals.

What level of Building Insurance should my home be insured for?

Our homes are unique and as such there is no one way to determine how much coverage a home may require. As not all properties are the same size, location, age and built form it may be worthwhile for building owners to calculate their home insurance value, to ascertain what level of Building Insurance may fit any chosen requirements.

How to keep Building Insurance premiums down?

Shopping around is one of the best ways to find a great deal and keep your Building Insurance premiums down. At iSelect we have a range of policies and providers to compare from and a friendly team who will assist you in understanding all things Building Insurance.*

To find your Building Insurance match start by comparing from a range of policies and providers with iSelect.

Last updated: 03/09/2021

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