Can home insurance be cancelled?
Yes – you can cancel your Budget Direct home and/or contents insurance policy at any time.
How do I cancel my home insurance?
Simply call us on 1800 182 310 and we’ll help you.
Does home insurance have a cooling-off period?
Yes – your cooling-off period starts on the day your Budget Direct home and/or contents insurance policy is issued or renews, and lasts for 21 days.
If you change your mind within that time, you can cancel your policy and – if you haven’t made a claim – get all your money back.
If I cancel my home insurance, will I have to pay a fee?
It depends on the circumstances.
You will not have to pay a cancellation fee if you:
- cancel your policy within 21 days of the policy being issued or renewed – the cooling off period – and have not made any claims, or
- pay your premium in instalments (i.e. fortnightly or monthly), or
- decline our annual offer to renew your policy.
Otherwise, you’ll have to pay an ‘early cancellation’ fee of $40.
Can I cancel my home insurance policy and get a refund?
If you cancel your policy within 21 days of it being issued or renewed – the cooling-off period – you’ll receive a full refund of your premium payments (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, and as long as you have not made any claims).
If you pay your premium in instalments (i.e. fortnightly or monthly) and cancel after the cooling-off period, any payments you have made will not be refunded.
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 insurer cancel my home insurance policy?
If you don’t meet the conditions of your Budget Direct cover, we may cancel your policy (when permitted by law).
These conditions include providing us with true and complete information regarding your home, its occupants, and your claims history.
If we cancel your policy due to your failure to meet your obligations, you’ll be refunded either fully or a pro rata amount, i.e. any unused portion of your premium.
For more information, please read the product disclosure statement.
Can my policy be cancelled for non-payment?
Yes – if your fortnightly or monthly premium instalments are overdue by a month or more, we may cancel your policy.
If you don’t pay your premium when it’s due, we’ll send you a friendly reminder.
Experiencing financial difficulty? Please call 1800 182 310 to discuss your options.
Can my policy be cancelled for my failure to disclose information?
Yes – if we ask you questions, you have a duty of disclosure to tell us anything relevant to our decision to insure you and under what terms.
This duty applies when you take out home insurance for the first time, or renew, extend, vary or reinstate it, including any changes to something you’ve previously told us.
If you do not tell us anything you’re required to tell us, we may cancel your policy (in addition, we may reduce the amount we pay you if you make a claim).
(If your failure to tell us is fraudulent, we may refuse to pay your claim and treat the contract as if it never existed.)
How will the cancellation of my policy be confirmed?
We’ll send you written confirmation of the cancellation via email or post – unless an instalment payment is overdue by one month or more, in which case we’ll 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.