Buying home insurance
How do I insure my home and/or contents?
Insuring your home and/or contents with Budget Direct is quick and easy:
- Decide whether you need home and/or contents insurance.
- Calculate how much cover you need.
- Get a quote – we’ll ask you some questions about you and your home and/or contents.
- If you’re happy with the quote, apply for cover. If we agree to insure your home and/or contents, your cover will start on the date you select.
I am buying a home, when should I purchase home insurance?
You should check with a lawyer or conveyancer when you should insure your home (or investment property), this is often 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 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 is complete
If you need new home insurance, follow the steps below, if not, call us to cancel.
If your home will be unoccupied for more that 180 days you need to let us know.
How to insure your new house
| If you're… | You can do this… |
|---|---|
| A new customer | Get a Quote |
| A Budget Direct customer looking for home and/or contents insurance |
|
| An existing Budget Direct home insurance policyholder |
|
Alternatively, you can call us on 1800 700 027 for assistance.
You can also call this number to cancel a Budget Direct home insurance policy if you have no intention of buying another house (e.g. if you plan to rent).
Can home insurance be transferred to another home?
If you’re a Budget Direct customer and you sell your home and move into another one, you’ll need to update your policy details.
Simply follows these steps:
- Log into your online account.
- Click/tap the button for the relevant policy.
- Click/tap ‘Modify Policy/Edit Policy’.
- Follow the prompts.
I'm building a new house – when must I insure it?
If you’ve contracted someone to build your house, you can contact us to get it insured when you have obtained the certificate of occupancy.
Get a quote online and receive a discount on your premium; or call us on 1800 700 027.
Do I need to list, or specify, home contents on my policy?
It’s up to you to decide whether to list the following on your Budget Direct contents policy:
- contents items with a higher replacement value than our benefit limit (where applicable)
- portable items you want covered at the insured address and when you take them with you away from your home.
You can specify 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.
How much home insurance do I need?
Your 'sum insured' is the maximum amount Budget Direct will pay to rebuild your home or replace your contents after a covered event. It's essential you set this amount high enough to cover the full cost of rebuilding or replacing everything at current prices.
Underinsuring your property could mean you won't have enough cover from a significant loss.
For Your Home Building: Consider the total cost to rebuild your home from scratch, including:
- Current building materials and labour costs
- Any improvements you have made or unique site challenges
You can use our online calculators as a guide, or consult a professional valuer or building contractor for a precise estimate.
For Your Contents: Estimate the cost to replace all your personal belongings with new items. A good method is to walk through each room, listing everything and its current replacement value. Don't overlook items like clothing, kitchenware, and items that may be stored away.
What's the difference between a house’s market value and its replacement cost?
Market value is the estimated price your property – the dwelling and the land – would sell for on the open real estate market.
Replacement cost is the price to completely reconstruct your property's residential building and other structures if they were totally destroyed, for example, by fire.
It’s important to appreciate the distinction – and for you to insure your home for its replacement cost.
It’s up to you to decide how much it would cost to replace your home (the sum insured).
Use these calculators to help you estimate how much it would cost to replace your home.
What if the amount I insure my home for is too low?
It’s important the home 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 insurance policy.
If you select this cover, we’ll increase your home 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 I can insure my home for?
With Budget Direct, you can insure your home for up to $2 million.
To find an insurer who may agree to insure a home with a higher sum insured, go to the Find an Insurer website.
Is there a minimum amount of cover for home contents?
Yes – the minimum amount of cover we provide for home contents is $20,000. To find an insurer who may agree to insure your contents with a lower sum insured, go to the Find an Insurer website.
Are there any limits on the amount you'll pay to replace home contents?
Yes – the following table shows 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 | Limits |
|---|---|
| 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 |
- 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.
- This amount is shown on your insurance certificate and in your online account.
Are there any limits on the amount you'll pay to replace unfixed home building materials?
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.
Does home insurance come with optional extras?
For an additional premium, you can customise your Budget Direct home and/or contents insurance by adding one or more of the following optional covers to your policy:
| Can be added to a home or contents policy | |
|---|---|
| Flood cover | Covers your home and/or contents for damage or loss caused by flooding rivers, creeks, lakes, dams and other bodies of water. |
| Accidental Damage | Standard cover includes accidental damage to glass, ceramic and sanitary fixtures; Accidental Damage extends this cover to most of your home and/or contents. |
| Landlord Covers | Landlords can choose one or both of the following:
|
| Motor Burnout | In case a power surge burns out a motor in an electrical appliance you own (less than 10 years old); we can also pay for related spoilage of food. |
| Can be added only to a home policy | |
| Sum Insured Safeguard | If your nominated sum insured is insufficient to repair or replace your home, we’ll increase it by up to 25% (e.g. from $400,000 to $500,000). |
| Can be added only to a contents policy | |
| Personal Effects Cover | Insures the portable items (e.g. jewellery, sunglasses, camera) you take with you away from your home. Read more |
| Commercial Storage | Covers your contents for loss or damage while they're stored in a commercial storage facility. |
How do I add optional covers to my home insurance policy?
Do apartment owners need home insurance?
Building insurance for your apartment complex is normally arranged by your body corporate or owner's corporation and typically protects the building structure and common areas.
At Budget Direct, we don't insure Apartment buildings that are listed under a strata title. Instead, we focus on protecting what's inside your home. Our Contents Insurance can cover:
- Your personal belongings against loss or damage from insured events.
- Your legal liability if you are found responsible for an accident.
Does Budget Direct offer strata-title insurance?
No, Budget Direct does not offer insurance for the building insurance for strata-titled properties, such as units, apartments, townhouses, or duplexes. Your body corporate or owner's corporation typically arranges building insurance for these properties.
However, we do offer Contents Insurance to protect your belongings inside your strata property. This policy provides cover for:
- Loss or damage to your contents from insured events.
- Your legal liability if you are found responsible for an accident.
Please refer to the PDS for terms and conditions.
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 Budget Direct home 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.
Can I insure a home used for short-term rentals?
No, Budget Direct does not insure homes used for short-term holiday rentals, such as those listed on Airbnb or Stayz.
We do, however, insure:
- Investment properties with long-term leases.
- Holiday homes that owners do not rent out.
If your home is insured with us and you begin renting out all or part of it for short-term stays, you must tell us as soon possible.
To find an insurer who may cover short-term rentals, visit the Find an Insurer website.
I'm a renter / tenant – do I need home insurance?
As a renter, you don't need to worry about insuring the home you're living in – that's your landlord's responsibility.
However, If you want to protect your personal belongings, you will need Contents Insurance, sometimes known as renter's insurance. This covers the cost of repairing or replacing your items, including:
- furniture
- whitegoods
- electrical appliances
- clothing
- other personal effects.
This cover applies if your belongings are damaged due to an insured event.
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.
When does my home insurance take effect?
Your Budget Direct home and/or contents insurance will take effect the day you buy the policy – unless you’ve chosen a later date for your cover to begin, in which case it will take effect on that date.
Within 72 hours of when you first purchase your policy you are not covered for any loss, damage, or any legal liability you incur as a result of:
- bushfire or grassfire
- a storm (including cyclone)
- a flood.
This is known as the uninsured period, unless the policy:
- commenced immediately after another policy covering the same risks expired, without a break in cover.
- commenced on the same day you bought your home or moved to a new address.
Is it compulsory to insure a mortgaged home in Australia?
Most Australian home mortgage lenders require you to take out home insurance before your loan becomes unconditional.
(If you own your home and have no mortgage, it’s still important to insure your home. Otherwise, you run the risk of financial losses you may not be able to cover on your own.)
My bank has asked me for a home insurance certificate of currency – what’s that?
A certificate of currency is a document issued by insurers like Budget Direct.
It states that your insurance policy (e.g. for your home) is current and valid.
Many lenders require borrowers like you to give them the certificate to prove your mortgaged home is insured.
Among other things, the certificate shows the period of insurance, the sum insured, and the interested party or mortgagee, namely your bank or other lender.
How can I get my certificate of currency?
You have two easy ways to get your certificate of currency:
- Download it now: Log into your online account and download your certificate instantly.
- Request a copy: Contact us, and we'll email or post it to you.
What information do home insurers ask for?
When you get a quote from Budget Direct, we’ll ask you a series of questions about you and your home, including:
- its address
- how it will be occupied
- type of building
- its age and construction materials
- the replacement cost of your home (and contents)
- whether it will be used for business
- your insurance and claims history
- whether you’d like any optional extras.
Your answers to these questions will help us to determine your risk level and set your premium accordingly.
Why do you want to know about my home insurance claims history?
When you get a quote for Budget Direct home and/or contents insurance, we’ll ask you about your claims history – specifically any claims you’ve made over the past five years.
This helps us to accurately assess the risk of insuring you and your home and calculate the cost – your premium.
It’s therefore critical this information is complete and correct.
If it’s not — if you under-report your previous claims — where permitted by law, me may do either or both of these:
- cancel your policy
- reduce the amount we pay you if you make a claim. If your failure is fraudulent, we may refuse to pay a claim and treat the policy as if it never existed.
How can I find out about my home insurance claims history?
You can find out about your home and/or contents insurance claims history by contacting your previous insurer/s from the past five years.
What insurance documents can I expect to receive?
Your Budget Direct home and/or contents 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.
- Supplementary product disclosure statement - We may include this if something has changed in the Product disclosure statement.
- Financial Services Guide - The purpose is to provide details about the financial service offered, fees charged and complaints information.
- Key Facts Sheet - This is a summary of key information relating to the insurance product, this should be reviewed in conjunction with the PDS.
- Direct Debit Request Service Agreement - This document sets out the terms and conditions under which we will debit your bank account.
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 includes information about:
- 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
- benefit-amount limits
- excess types (Basic and additional)
- cancellation fees.
