Can home insurance be cancelled?
Yes – you can cancel your Budget Direct home and/or contents insurance policy at any time.
How can I cancel my home insurance?
A convenient and easy way to cancel your insurance policy (even if it was renewed recently) is by logging into your online account.
Here’s how you can cancel your policy online:
- Tap or select the policy you want to cancel
- Tap or select ‘Cancel’ to cancel your policy
You can also contact us via live chat if you need more support.
Does home insurance have a cooling-off period?
Yes – you will have a 21-day cooling-off period to allow for extra time to review your policy after you first purchase it or after it has renewed.
If you cancel your cover within the 21-day cooling-off period of buying or renewing your policy, and you haven’t lodged a claim, you’ll receive a full refund of the premium you’ve paid.
If I cancel my home insurance, will I have to pay a fee?
If you cancel your policy 21 days after buying or renewing it (the cooling-off period), we will refund the unused portion of the policy but an ‘early cancellation’ fee of $40 may be charged.
You can cancel your policy by logging into your online account or contact us.
If I am switching from one policy to another, when should I cancel my existing policy?
If you are switching from one home insurer to another, don’t cancel your old policy until your new policy is in place. It’s important that you start your new policy first and make sure it takes effect before you cancel your existing policy.
If you cancel home insurance before switching to a new policy, you may face a gap in your cover. If a storm, fire or break-in occurs during this gap, you will be responsible to cover the costs out of your own pocket. To ensure you are fully covered with no gap in your protection, always arrange your new policy first before cancelling the old one.
Keep in mind that switching providers before your policy ends may result in an early cancellation fee.
Can I cancel my home insurance policy and get a refund?
If you cancel your home and/or contents insurance policy
- within 21 days of buying or renewing it (the cooling-off period) you’ll receive a full refund of your premium payments (as long as you have not made a claim).
- in other circumstances (unless you have made a total loss claim) we will refund you for the premium that would have covered you after the cancellation date.
We will not refund any amount of $1 or less.
We may charge an early cancellation fee of $40.00 (GST inclusive).
If you have made a total loss claim, we will not refund you any premium.
When should I cancel home insurance after selling my home?
Make sure you cancel your home insurance after the settlement date and not before.
To ensure your home is fully insured during the sale process, we suggest cancelling your home insurance after the settlement date. Until settlement, you’re still legally responsible for the property. If fire, storm damage, or vandalism occurs, your policy can allow you to repair or rebuild without bearing the entire financial burden yourself. This will ensure there are no gaps in your policy and you’re covered up until the buyer takes ownership of the property.
If you cancel your home insurance before the new buyer officially takes possession of the residence, you may be liable for any damage that occurs.
How long does a refund take when I cancel my home insurance policy?
You can expect a refund within 15 business days. Usually, you will receive the refund after the cancellation date.
Can I cancel my home insurance policy after making a claim?
Yes – you can cancel your Budget Direct home and/or contents policy at any time.
Can my policy be cancelled if I make a misrepresentation when answering the insurers questions?
Yes – We will ask you questions and your answers will help us decide whether to insure you, and on what terms. Each question we ask you is important.
You have a legal duty under the Insurance Contracts Act to take ‘reasonable care not to make a misrepresentation’ to us. This means you must answer all our questions fully, accurately, and honestly.
If you fail in your duty, where permitted by law, we may cancel your policy. Or we may reduce the amount we pay you if you make a claim. Or we may do both of those things.
If your failure is fraudulent, we may refuse to pay a claim. And we may treat the policy as if it never existed.
Can my policy be cancelled for non-payment?
Yes, we can cancel your policy for non-payment. If an instalment isn’t paid, we’ll make sure to send you a reminder letter that this has been missed and let you know the cancellation date.
What happens if Budget Direct cancels my home insurance policy?
Cancelling a home insurance policy is a decision we don’t take lightly, and we’ll always let you know in advance before anything changes.
We will send a cancellation notice to your preferred email address or postal address as listed on your policy. Where applicable, we will then refund you any remaining unused premium.
However, if you act fraudulently, we may not refund you the remaining amount.
How will the cancellation of my policy be confirmed?
We’ll send you written confirmation of the cancellation via email or post, unless - when an instalment payment is overdue we will send you a missed payment notification, which informs you of the date we will cancel your policy if the instalment payment remains unpaid.
If an instalment payment is overdue by one month or more, we will cancel your policy automatically without notice.
What do I do if my home insurance is cancelled?
Regardless of whether you cancel your policy or we do (when permitted by law), if you intend to retain ownership of the home in question, you should consider getting it insured by another provider immediately.
You can get your search for another insurer underway by using the Insurance Council of Australia’s Find an Insurer website.