FAQs categories
What are the different types of home insurance?
- Home and contents insurance covers your property and possessions for a range of insured events, including fire, theft and storm damage.
- Home building insurance covers your house and other structures on your property, including garden shed, fences, and in-ground swimming pool.
- Contents insurance covers the items inside your home, including furniture, electrical appliances, clothing, and more.
Terms, conditions, limits and exclusions apply; for full details, please read the product disclosure statement.
What’s covered under a ‘home building’ policy?
Among other things, a home building policy covers:
- your residential building, including garages
- other structures like your garden shed and fences
- domestic fixtures – items permanently attached to your home or buildings (e.g. built-in wardrobes, air conditioner, kitchen cupboards, dishwasher, fixed floor coverings (except carpets), awnings, in-ground swimming pool)
- permanent structural improvements (e.g. a home extension).
You are covered for these things up to the amount of your home building sum insured.
What’s covered under a ‘home contents’ policy?
Among other things, a home contents policy covers:
- furniture and furnishings
- computers and electrical appliances
- kitchenware
- clothing and shoes
- valuables like jewellery, sunglasses and cameras (if you want your portable items to be insured when you take them with you away from your home, you’ll need to get extra Personal Effects Cover).
- fitted carpets and rugs
- internal blinds, curtains and window coverings.
You are covered for these things up to the amount of your home contents sum insured.
Is my home covered for storms?
Yes – your home building and/or contents are covered for damage or loss due to violent winds, lightning, rain, hail and snow.
This cover includes the escape of rainwater from any water pipe, drain or gutter; and surface run-off of rainwater from surrounding areas that occurs within 24 hours of the storm.
(To insure your home against floods, you’ll need to take out optional Flood Cover.)
Is my home covered for floods?
Your home will be covered for floods if you take out optional Flood Cover, which insures your home building and contents for loss or damage caused by flooding rivers, creeks, lakes, dams and other bodies of water.
You can apply to add Flood Cover to your home building and contents insurance policy when you get a quote and buy insurance or – if you’ve already bought cover – by calling us on 1800 182 310 or logging into your online account and editing your policy.
If you meet our underwriting criteria, we’ll approve your application.
Are leaks covered?
Yes – we cover escape of liquid in the home, including water damage caused by burst or leaking water pipes and overflowing sinks, basins, baths and appliances.
Note that we do not cover damage caused by leaks in shower walls and bases resulting from normal wear and tear to tile grout and silicone joints, for example.
That’s because these leaks are considered preventable through periodic maintenance and repairs.
The most we’ll pay towards the cost of locating the unknown source of a leaking pipe is $1,000.
Are my carpets covered?
Yes – under your home contents policy.
I’ve accidentally driven into the wall of my garage – is the damage covered?
Home building insurance covers damage to garages due to impact (but not the damage to your car, for which you would need to take out comprehensive car insurance).
Are there any limits on the amount you’ll pay to replace home-building items?
Yes – the most we’ll pay to repair or replace unfixed home building materials and uninstalled home fittings damaged or lost in any one insured event is $1,000.
Are there any limits on the amount you’ll pay to replace home contents?
Yes – the following table shows you the most we’ll pay to repair or replace certain contents damaged or lost in any one insured event.
If you have an item that exceeds this limit, you’ll need to list, or specify, the item on your policy (where applicable).
| Contents | Limit |
|---|---|
|
Hand-woven carpets and rugs |
Up to $2,500 per item1 |
|
Cash, cheques, and any other negotiable financial document |
Up to $800 in total |
|
CDs, DVDs, flash cards, digital media cards, audio and video tapes, records, computer discs, computer software, game cartridges, and game consoles |
Up to $3,000 in total1 |
|
Firearms (legally registered and stored) |
Up to $2,000 in total |
|
Home office equipment |
Up to $12,000 in total |
|
Jewellery and watches |
Up to $1,000 per item or set; and up to $5,000 in total1 |
|
Solid and plated silver and gold items (excluding jewellery and watches) |
Up to $2,000 per item or set |
|
Paintings, pictures, works of art, sculptures, and art objects |
Up to $5,000 per item or set; and up to $12,000 in total1 |
|
Collections, memorabilia, stamps, collectors’ pins, medals, and collectors’ non-negotiable currency |
Up to $2,000 per item or collection1 |
|
Tools of trade |
Up to $2,000 in total |
|
Specified contents items |
Up to the sum insured2 |
1. You may be able to insure the item/s for more than the limit by specifying it, or listing it separately, on your policy, with an individual description and value. You can do this when you get a quote and buy a policy or – if you’ve already bought one – by calling us on 1800 182 310 or logging into your online account and editing your policy.
2. This amount is shown on your insurance certificate and in your online account.
Do I need to list, or specify, contents on my policy?
It’s up to you to decide whether to list the following on your policy:
- contents you want to insure for more than our benefit limit (where applicable)
- portable items you want covered when you take them with you away from your home.
You can list your contents when you get a quote and buy a policy or – if you’ve already bought one – by calling us on 1800 182 310 or logging into your online account and editing your policy.
Are valuables I take with me away from my home, like jewellery, covered?
Among the items covered by Budget Direct home contents insurance are:
- bicycles
- clothing
- jewellery/watches
- musical instruments
- photographic equipment
- sporting equipment.
These items are automatically covered if they are lost or damaged while inside your home.
Personal Effects Cover
If you want these items to also be insured when you take them with you away from your home, you’ll need to add optional Personal Effects Cover to your policy; you can choose one or both of two cover types:
Unspecified Personal Effects: These are portable items not specified, or listed separately, on your policy. The most we’ll pay per item is $1,000. You are required to nominate a total cover amount for a group of items damaged or lost in any one insured event: $1,000, $2,000, $3,000, $4,000, or $5,000.
Specified Personal Effects: These are portable items specified, or listed separately, on your policy, with individual descriptions and values.
For an additional premium, you can add one or both of the abovementioned personal effects covers to your policy.
You can do this when you get a quote and buy a policy or – or if you’ve already bought one – by calling us on 1800 182 310 or logging into your online account and editing your policy.
Note that some portable items, like mobile phones and laptops, are only covered if they are lost or damaged inside your home by an insured event.
This includes events like theft and storms but excludes accidental damage (e.g. due to you dropping your smartphone or tablet on the floor at home).
How do you decide whether to repair or replace damaged contents?
If a damaged item can be repaired quickly, easily and economically (e.g. a television), we’ll repair it.
If it’s uneconomic to repair or damaged beyond repair, we’ll replace it with a new one.
Are things like my mobile phone and tablet covered?
Some electronic items, like mobile phones and tablets, are only covered if they are lost or damaged inside your home by an insured event.
This includes events like theft and storms but excludes accidental damage (e.g. due to you dropping your phone or tablet on the floor at home).
Am I covered if I accidentally break something?
Yes. Home building cover includes accidental breakage of:
- fixed glass (e.g. glass windows and doors)
- ceramic fixtures (e.g. cooktops and oven doors)
- sanitary fixtures (e.g. basins, baths and toilets).
Home contents cover includes accidental breakage of fixed glass in:
- furniture
- pictures
- mirrors.
You can extend this cover to most of your building and contents by adding optional Accidental Damage cover to your policy.
You can do this when you get a quote and buy a policy or – if you’ve already bought one – by calling us on 1800 182 310 or logging into your online account and editing your policy.
Are boundary fences covered?
Yes.
What’s not covered?
There are some things Budget Direct home building and contents insurance policies do not cover – these are called ‘exclusions’. Among the things we do not cover are:
- retaining walls
- motor vehicles
- stock used in any business, trade or profession
- uncut and unset gems.
For the full list of exclusions, please read the product disclosure statement.
I’m a landlord – what am I covered for?
You’re covered for, among other things:
- loss or damage to your investment property
- loss or damage to your carpets, lights and curtains
- loss of net rental income for the period your property is uninhabitable due to an insured event.
You can also add the following optional landlord covers to your home building and contents policy:
- rental-payment defaults, and/or
- theft or malicious damage by your tenants or their visitors or guests, up to a maximum benefit amount of $10,000.
Do you offer strata-title insurance?
We don’t insure strata-title buildings, however we do cover their contents.
I’m moving into a place with some housemates – will you insure me?
Yes – as long as you don’t share with more than two unrelated housemates.
Note that your policy would cover only the contents you own – not your housemates’ belongings.
How can I pay for my home insurance?
You can pay your home and/or contents insurance premium by direct debit from your bank account or credit card, or by PayPal.
You can pay fortnightly, monthly or annually (the last option is the most economical).
Is it cheaper to pay my premium annually?
Yes – by paying annually instead of in instalments (i.e. fortnightly or monthly), you’ll pay a lower premium and avoid administration fees.
What is a product disclosure statement (PDS)?
A product disclosure statement (PDS) is a document containing all the things you need to know about an insurance product.
Budget Direct’s home and contents insurance PDS comprises two separate parts:
Part A contains general information about the product, including:
- what is covered (the ‘benefits’) – and the terms and conditions under which these benefits are provided
- the insured events (e.g. storm and rainwater, theft)
- what is not covered (the ‘exclusions’)
- optional covers (e.g. Flood Cover)
- how to claim
- how claims are settled
Part B contains specific details about the product, including:
- benefit-amount limits
- excess types (Basic and others)
- administration and cancellation fees.
How soon after buying my home must I insure it?
It’s not a legal requirement, however your lawyer or conveyancer will usually recommend you insure your home (or investment property) when you exchange signed copies of the purchase contract with the seller.
Also, most mortgage lenders require you to take out insurance before the loan becomes unconditional.
I’m building my own home – when must I insure it?
Whether you’re an owner–builder or you’ve contracted someone else to build your house, you can contact us within 30 days of lock-up stage to get it insured.
Lock-up stage is when your house’s windows and doors (though not necessarily your garage door) have been installed and you’re able to lock up your house.
Get a quote online and receive a discount on your premium; or call us on 1800 700 027.
When does my home insurance take effect?
Your Budget Direct home and/or contents cover starts as soon as we agree to insure you.
How much should I insure my home and/or contents for?
It’s up to you to determine how much it would cost to replace your home building and contents – the ‘sums insured’ – if they were totally destroyed, for example, by fire.
It’s the maximum amount we’ll pay, so it’s important you’re comfortable the amount you nominate is sufficient to replace your entire home building and all of your contents at today’s prices.
Use these calculators to help you estimate how much it would cost to replace your home building and contents.
For a more accurate rebuilding cost estimate, we recommend you consult an architect, builder, quantity surveyor, valuer or other suitably qualified professional.
What if the amount I insure my house for is too low?
It’s important the home-building sum insured you nominate is sufficient to rebuild your home at today’s prices.
You can increase your sum insured at any time by calling us on 1800 182 310 or logging into your online account and editing your policy.
For extra peace of mind, you can add optional Sum Insured Safeguard cover to your home-building insurance policy.
If you select this cover, we’ll increase your home-building sum insured by up to 25% if your nominated sum insured is not sufficient to repair or replace your badly damaged or destroyed home (e.g. from $400,000 to $500,000).
What’s the most Budget Direct can insure my home for?
$1.5 million. (If the replacement value of your home building is greater, you’ll need to seek insurance elsewhere.)
Is there a minimum cover amount for contents?
Yes – $20,000.
Will my home insurance cover keep up with rising costs?
At the end of each insurance period, we’ll automatically increase the amount your home building and/or home contents are insured for – to help keep pace with rising costs.
When you receive your annual insurance renewal offer, you’ll notice your premium has been adjusted to reflect the higher sum insured.
If you wish, you can decline the higher sum insured by calling us on 1800 182 310 or logging into your online account and editing your policy.
For example, if your house was insured for $500K and we increased it to $550K but you declined the increase, your sum insured would remain unchanged at $500K.
Regardless, we encourage you to regularly review your sum insured, which you can change at any time (subject to our acceptance of the new sum insured) by calling us or logging into your online account and editing your policy.
Note that we will not automatically increase the sums insured for your listed, or specified, contents and personal effects.
We recommend you get jewellery, collections, art works and the like valued every so often by a suitably qualified professional to ensure they’re adequately covered.
How do I add optional covers to my policy?
You can add optional covers to your home building and/or home contents policy when you get a quote and buy insurance or – if you’ve already bought it – by calling us on 1800 182 310 or logging into your online account and editing your policy.
I’m a landlord – do I have to provide you with a copy of the rental agreement?
You won’t need to provide us with a copy of your rental agreement when you buy building and/or contents insurance.
However, because our acceptance of landlord claims is conditional on a rental agreement being in place, we’ll need to see a copy of the agreement if you lodge a claim.
What insurance policy documents can I expect to receive?
Your home insurance policy documents will comprise:
- Certificate of insurance – your proof of insurance, including your sum insured; excesses; optional covers; specified, or listed, contents; and a summary of what you’ve disclosed to us.
- Product disclosure statement – tells you everything you need to know about the product, including the terms, conditions, limits and exclusions that apply.
How do I make a home building and/or contents claim?
Follow these steps:
- Take all reasonable steps to prevent or minimise further loss, damage or liability.
- Report any theft (or attempted theft), malicious damage or vehicle impact to the police as soon as possible.
- Lodge a claim, providing us with the full details of the incident and any relevant supporting documents.
Am I required to provide proof of loss or damage?
Allowing us to assess the damage or loss is usually all that’s required to prove it.
If an item has been lost or stolen and can’t be assessed, we may ask you to provide evidence of ownership and value.
This evidence could include:
- purchase receipts
- valuations
- credit card statements
- serial numbers
- owner’s manuals
- guarantee or warranty certificates
- photos or videos of your item
- product packaging.
If evidence is required to support your claim, please email it to homeclaims@BudgetDirect.com.au
How do I send you the documents supporting my claim?
Email them to homeclaims@BudgetDirect.com.au
How quickly must I lodge my claim?
As soon as possible.
What does a home claim assessment involve?
After you’ve lodged your claim online or over the phone, we may send an assessor to your home to:
- investigate the cause of the damage
- inspect the damaged property
- assess what’s required to repair or replace your home and/or contents.
How long will a home claim assessment take?
If one of our assessors comes to your home, it’ll take them roughly 30 to 60 minutes to complete their assessment of the loss or damage to your home building and/or contents.
How will my home building claim be settled?
Upon acceptance of your claim, we’ll appoint a team member to take care of the repairs to your home. In most cases, we will:
- assess the nature and extent of the damage or loss
- make your home safe (e.g. remove a fallen tree)
- source repair quotes from our preferred builders
- appoint a building contractor to repair your home
- obtain – through the builder – all the materials needed for the repairs
- keep you informed of progress
- ensure repairs comply with the latest building codes
- provide you with temporary accommodation, if necessary.
How will my home contents claim be settled?
If your contents have been damaged or lost, we will do one of the following:
- get them repaired and/or replaced through our network of suppliers and/or retailers, and delivered to your home, or
- give you a cash settlement.
If only part of a room is damaged, will you ensure the replacement materials match the undamaged part?
Yes – and if we can’t find matching materials, we’ll pay to have all of your window and/or floor coverings in the room, hallway or passageway repaired or replaced so that they do match.
In other words, we’ll do all we can to restore your room to its pre-damage condition.
(By ‘room’ we mean an area starting and finishing at its nearest walls, doorway, archway or other opening.)
Who will be my main point of contact during the repairs to my home?
The building contractor, who will answer any questions you have about the repairs and keep you updated on progress.
We’ll also appoint a case manager, who will keep an eye on things and contact you every so often to make sure you’re happy with the process.
How long do home repairs take?
It depends on the extent of your home’s damage, the availability of materials, and our builder’s workload.
The builder will be able to give you an estimated timeframe and, once the repairs get underway, will keep you informed of progress.
Will my home repairs be guaranteed?
Yes – we guarantee the quality of authorised repairs, including the workmanship and materials.
What’s an excess?
An excess is the fixed amount you pay towards each claim you make on your home and/or contents insurance policy.
For example, if your home building excess was $700 and your damage bill was $10,000, you’d pay $700 and we’d pay $9300. If the damage was $700 or less, you’d pay the entire bill.
What’s the purpose of the excess?
The excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim – which in turn helps keep your premiums down.
What excess would I have to pay on a claim?
If you make a claim, you’ll be required to pay a Basic Excess and any additional excesses that apply (see table below).
| Excess | Amount |
|---|---|
| Basic | $100 to $5,0001 |
| Fixed Based on perceived risk; may not apply to your policy |
Subject to underwriting criteria |
| Tenant Default2 | 4 weeks’ rent |
| Theft and Malicious Damage by Tenants2 | 4 weeks’ rent |
| Earthquake | $500 |
1. You’ll be asked to nominate an excess within this range when you get a quote and buy a policy.
2. This excess applies only if your policy includes these optional landlord covers.
Your certificate of insurance shows you the amount and types of excess that apply to your cover; they can also be viewed in your online account.
How do I pay the excess?
Before the repair works begins or your items are replaced, we’ll ask you to pay the excess to us.
If I make a claim for loss or damage to my home building and contents, will I have to pay two excesses?
No – you’ll be required to pay only the higher of the two Basic excesses you have selected.
Can I change my excess?
Yes – you can change your Basic Excess at any time; it can be any amount from $100 to $5,000.
If you increase your excess, it can lower your premium (and vice-versa).
To change your excess, call us on 1800 182 310 or log into your online account and edit your policy.
What if I can’t stay in my home?
If an insured event causes damage to your home that makes it unfit to live in, we’ll arrange temporary accommodation for your family and household pets while your home is being repaired, for up to 12 months.
The temporary accommodation will be of a similar quality to your home.
This benefit also applies if loss or damage to your contents due to an insured event makes your home unliveable.
Will my storage costs be covered while my home is being repaired?
Yes – we’ll pay for the removal and disposal of your damaged contents and the storage of your undamaged contents during the time it takes to repair your home – up to 10% of your sum insured.
We’ll pay this amount in addition to your total sum insured.
My home has been burgled – what do I do?
Report the incident to the police before lodging a claim.
The police will give you a reference number, which you’ll need to pass on to us.
A water pipe in my home has burst – what do I do?
Turn the water off at the mains and/or contact an emergency plumber to stop the leak.
Then call us on 1800 069 336 and we’ll arrange for the water and any damaged flooring to be removed and send an assessor to your home.
A tree has fallen on my house – what do I do?
If anyone in your house has been seriously injured, dial 000.
If the fallen tree threatens your family’s health and safety, contact your state emergency service on 132 500.
If it’s not an emergency, call us on 1800 069 336; we’ll arrange to get the tree removed after assessing the damage to your home.
How can I see my policy details?
You can view and manage many of your home insurance policy details – including your contact details, payment preferences, sums insured, excesses, and add-on covers – through your online account.
(You can also see most of this information on your certificate of insurance.)
How do I set up an online account?
It will vary, according to the following scenarios:
If you buy home insurance online
When you buy a policy, an online account will be automatically set up for you; you’ll be able to view your policy details immediately. Before you go, we’ll ask you to create a password so you can log into your online account later.
If you buy home insurance over the phone
We’ll ask you to provide us with your email address. We’ll then email you instructions for creating a password so you can log into your online account.
If you’ve bought home insurance but don’t have an online account
You can register for an online account
What changes can I make to my policy?
Among the things you can change on your home insurance policy via your online account are:
- contact details
- payment preferences
- sum insured (e.g. following a renovation)
- add-on covers (e.g. Flood Cover)
- excess (Basic)
- listed, or specified, contents
- home-security information
- claims history.
I’ve forgotten my account username and password – what must I do?
If you forget your username and/or password:
- Go to the Policy Manager login page.
- Click on the Forgot password? or Forgot username? link.
- Verify you are the account holder by typing in your policy number and personal details.
- Create a new password.
How do I renew my home insurance?
At least 14 days before your home insurance policy expires, we’ll send you a renewal notice.
Unless you’ve requested otherwise, your policy is set to renew automatically – saving you having to remember and reducing the risk of your home and/or contents being uninsured.
If you prefer, you can opt out of auto-renewal and renew your cover manually instead. To do this, please call us on 1800 182 310.
How to respond to your Budget Direct renewal notice:
| If your policy is set to… | And you want it to be... | Do this… |
|---|---|---|
| Auto-renewal (default) | Renewed | Nothing |
| Not renewed | Call 1800 182 310 | |
| Manual renewal | Renewed | Log into your online account or call 1800 182 310 |
| Not renewed | Call 1800 182 310 |
Do I have to accept the automatically increased sum insured in my policy renewal notice?
No – if you wish, you can decline the automatically increased sum insured by calling us on 1800 182 310 or logging into your online account and editing your policy.
For example, if your house was insured for $500K and we increased it to $550K but you declined the increase, your sum insured would remain unchanged at $500K.
Note that the sum insured is the maximum amount we’ll pay to replace your home building and home contents.
It’s therefore important you’re comfortable the amount you nominate is sufficient to replace your entire home and all of your contents at today’s prices.
Can I change my payment preferences?
Yes – you may change your payment method any time you want, however you may change your payment frequency only once a year, when you renew your cover.
You can also push back your payment date by up to 14 days, for example if you get a new job and your pay cycle changes; or if you’re temporarily short of funds.
To change your payment preferences, log into your online account.
Can I change my sum insured?
Yes – you can increase or decrease your sum insured for your home building and/or home contents at any time (subject to our acceptance of the new sum insured).
Indeed, we encourage you to regularly review your sum insured, especially if you renovate or make extensions to your home that increases its value.
Note that the sum insured is the maximum amount we’ll pay to replace your home building and home contents.
It’s therefore important you’re comfortable the amount you nominate is sufficient to replace your entire home and all of your contents at today’s prices.
I’m selling my house – what do I need to do?
If you’re selling your house and buying another one, your lawyer or conveyancer will usually recommend you:
- keep your current home (and contents) insured until settlement day – which generally occurs 30–90 days after you and the buyer sign the contract of sale
- insure your new house when you and the seller sign the contract of sale.
To insure your new house:
- Log into your online account.
- Click on the ‘Start a new insurance quote’ button.
- Follow the prompts.
When the sale of your current home reaches settlement, you can cancel the relevant insurance policy by calling us on 1800 182 310.
You can also call this number to cancel the policy if you have no intention of buying another house (e.g. if you plan to rent).
My bank has asked me for a certificate of currency – what’s that?
A certificate of currency is a document that proves your home building is insured.
Among other things, the certificate shows the period of insurance, the sum insured, and the interested party or mortgagee, namely your bank.
How can I get my certificate of currency?
Log into your online account to download your certificate or call us on 1800 182 310 to ask us to email it to you.
Can I cancel my home insurance policy?
Yes – you can cancel your policy at any time.
If you cancel it within 21 days of the purchase date – the cooling-off period – you’ll receive a full refund (as long as you have not made any claims).
If you pay your premium annually and cancel after the cooling-off period, you’ll be refunded a pro rata amount, i.e. any unused portion of your premium (minus the cancellation fee).
Important note: The answers to these FAQs are general and do not take into account your personal objectives, financial situation, and needs. Before buying a home and/or contents insurance policy, you should read the product disclosure statement.
Manage your policy
To see or change your policy details, log into your online account.
Need more help?
If you can’t find the answer to your question, please contact us.
