Fire Cover in Home Insurance

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What is fire insurance?

How does fire cover work in home insurance?

How does home insurance typically cover fire?

How much does home insurance with fire cover cost?

How do I protect my home in the event of a fire?

Do I live in a fire-prone area?

How do I make a home insurance claim?

Where can I compare home insurance with fire cover?

Long story short

Most home insurance policies cover damage related to fire

There’s generally no such thing as a separate ‘fire insurance’ policy to cover fire.

Check what’s excluded to avoid surprises

Excluded items can include fire damage caused by tenants or heat from fireplaces.

Total replacement cover offers peace of mind

Few insurers offer total replacement cover, but it can be worth considering for full rebuild costs without limits.

What is fire insurance?

If you see ‘fire insurance’ somewhere and wonder what it actually means, let us start by saying it’s not a standalone insurance product or policy type. In the insurance world, fire is an insured or defined event – meaning that it’s a circumstance specifically covered by insurance policies. (Many general insurance policies – not just home insurance but also car insurance, for instance – treat fire this way. But for now, let’s just focus on home, shall we?) 

Home insurance providers often define ‘fire’ as an insured event where flames cause loss or damage to your property or personal belongings (knock on wood this doesn’t ever happen!) This also means you can typically make a claim if your house or possessions go up in flames. But because there’s no standard definition of ‘fire’ in home insurance, it can get a bit murky across different providers. For instance, the way insurers define flame and heat can vary. So if you’re claiming damage from scorching or melting (both heat-related), you might need to double-check your policy first.  

Don’t worry, we’ll cover some of the general policy coverage and limitations in just a tick. But the main thing is, it’s worth examining your fire cover with an eagle eye.

Helpful tip

No two policies are exactly alike. That’s why it’s a solid idea to dig into your product disclosure statement (PDS) to make sure you know exactly what you’re covered for before a disaster torches your plans. Watch out for any exclusions, caps, or special terms that could leave you feeling the heat.  

Knowing your cover inside out means you’re one step ahead when it matters most.

Adrian Bennett

General Manager for General Insurance

How does fire cover work in home insurance?

Most home insurance policies include fire cover.  That said, here’s how fire cover could look with different types of home insurance: 

• Building insurance: If your property is damaged or destroyed in a fire, this type of home insurance (otherwise known as ‘home building insurance’) could cover the repair or rebuild of your home up to your sum insured (or for its full market value if you have total replacement cover – more on this in a jiffy).
• Contents insurance: If you’re a renter, this type of home insurance could cover any fire damage or loss of prized possessions within your home. If you’re a homeowner, you can have this alongside building insurance.
• Combined home and contents insurance: Having this type of home insurance could rebuild your property and replace your belongings if they catch fire.
• Landlord insurance: If you’re renting out your property, an additional landlord cover – on top of your building insurance – could protect you from any tenant-related dramas, like renters maliciously burning a part of your property. 

The extent of fire coverage your insurance policy could include depends on whether you have sum-insured or total replacement cover.

How does home insurance typically cover fire?

The inclusions and exclusions can differ a fair bit between insurers and policies, so it’s worth having a squiz at your product disclosure statement (PDS) or chatting with your provider to make sure you know what’s covered. 

Here’s an idea of what’s generally included and excluded: 

How much does home insurance with fire cover cost?

Home insurance policies with fire coverage can have different premiums depending on factors like location and risks. 

When you’re ready to compare fire cover under different home insurance policies, here are some questions to consider:  

• Does the policy cover you specifically for fires?
• Does it cover all fire-related damage, including where there was no flame?
• Are other types of natural disasters covered under this policy?
• In the event of a claim, what does the insurer need before cleanup begins?
• Does the policy cover cleanup? What does this cover specifically include?
• Does the insurer offer total replacement cover?
• What is the price difference between total replacement cover and sum-insured cover?
• Does the insurer offer a sum-insured policy extension?
• Does the policy cover emergency accommodation or extras like demolition and debris removal? If so, is this in addition to the sum-insured amount? 

How do I protect my home in the event of a fire?

No matter where you live, you can take steps to lower the chance of fire damage to your home and stuff. 

If you live in an area that’s prone to bushfires, here are ways you can protect your home and its contents:

Preparing your home against fire

Reducing the risk of having to leave your home means preparation. This can include clearing your gutters of leaves or twigs, owning hoses that are long enough to reach around your property, repairing gaps in your walls or roof, and cleaning up wood piles, branches and other debris around your home.

Building or renovating to state or territory fire building standards

New buildings or extensions may need building permit requirements if they’re in a fire-prone area. Not only do you need to comply with a national bushfire construction standard, but you may also require a Bushfire Attack Level assessment to make everything safe.

Landscaping for bushfires

Planning, designing and planting your garden to be fire safe can play a big role in reducing the risk of fire damage. This includes plant selection, choosing a location away from the house, and having an appropriate water supply.

Purchasing home insurance

Taking out an appropriate insurance policy can help you reduce the significant financial impact of a fire. Getting a combined home and contents insurance policy will ensure you’ve got your bases covered.

You can also take steps to reduce house fire risks indoors by focusing on prevention: 

Check your smoke alarms

Make sure they’re installed in all key areas, like hallways and bedrooms, and test them regularly to ensure they work.

Take extra caution with heating and cooking appliances

Don’t leave stoves, ovens, or heaters unattended, and ensure flammable items are stored well away from them.

Inspect electrical items

Replace frayed cords or wires and never overload power boards.

Safely store flammable items

Gas bottles, cleaning products, or aerosols are better kept in cool, well-ventilated areas, away from heat sources.

Have a fire extinguisher and fire blanket handy

Place them in high-risk areas like the kitchen and make sure the occupants know how to use them.

Whether it’s a bushfire or a house fire, it’s worth having an emergency plan in place. Make sure each household member knows the evacuation routes, where to meet, and how to get in touch if you’re separated. It’s also worth keeping important documents and valuables in a grab-and-go kit.

Do I live in a fire-prone area?

The Australian bush is known for its bushfires, but fire-prone areas come in many shapes and sizes, including: 

Some residential areas may be at risk, and, even if there’s no dense bush near your home, you could still be in a potential fire zone.  

Each state and territory maps fire-prone areas, so you can check out the risk of different areas before jumping into the property market. 

How do I make a home insurance claim?

If your home is damaged in a fire, it’s a good idea to tell your insurer as soon as possible. Giving them as much detail as you can and answering all questions accurately can help them process your claim quicker. Even if you can’t access your home to assess the damage, you can still contact your insurer to get the claims process started. 

To be able to claim, the event must be insured on your policy. It’s important to review the product disclosure statement (PDS) for information about policy coverage and limitations. Insurers will typically assess the damage to your property during an onsite visit before any repairs are done. They may also want to approve your repairer or builder. 

You can usually start emergency repairs before your claim is processed but keep clear records of all damage and repairs (including photos, videos, and receipts). Wherever possible, let your insurer know what you plan to do before you do it. 

Where can I compare home insurance with fire cover?

If you’re looking into fire cover, it’s a good idea to read policies carefully to see exactly what they cover for. Home insurance spans various events, and what’s covered will depend on the specific wording in your policy.  

We can help you compare policies – give the iSelect comparison tool a go!