Building insurance and resilient homes
Resilient homes and insurance
Being resilient means that whether you own or rent your home, you have insurance to cover the cost of your possessions and any relocation costs you may incur following a major event.
Contact your insurer to find out if undertaking any of the building upgrades identified in the guides will qualify you for a reduction of your home insurance premium. Online calculators are also available to guide the level of insurance you require for your home and for peace of mind can be checked by a qualified builder.
Case study: Flood resilient home and Surncorp insurance
Watch the video case study produced by Suncorp Insurance about how flood strategies incorporated into a family’s home renovations helped to reduce their insurance premium by 40 per cent.
Insurance related recommendations from the Royal Commission into National Natural Disaster Arrangements
In response to the extreme bushfire season of 2019-2020, the Royal Commission into National Natural Disaster Arrangements Report released in October 2020 has the following recommendations related to insurance and more resilient homes.
Recommendation 19.2 for Guidance for insurer-recognised retrofitting and mitigation, which has been supported by both the ICA and supported in principle by the Commonwealth Government:
The insurance industry, as represented by the Insurance Council of Australia, working with state and territory governments and other relevant stakeholders, should produce and communicate to consumers clear guidance on individual-level natural hazard risk mitigation actions insurers will recognise in setting insurance premiums.
The Commonwealth urges insurers to provide clear consumer guidance on actions to reduce natural hazard risk that will lower insurance premiums.
Recommendation 19.3 Mandatory consideration of natural disaster risk in land-use planning decisions
State, territory and local governments should be required to consider present and future natural disaster risk when making land-use planning decisions for new developments.
Recommendation 19.4 National Construction Code
The Australian Building Codes Board, working with other bodies as appropriate, should:
- assess the extent to which AS 3959:2018 Construction of buildings in bushfire-prone areas, and other relevant building standards, are effective in reducing risk from natural hazards to lives and property, and
- conduct an evaluation as to whether the National Construction Code should be amended to specifically include, as an objective of the code, making buildings more resilient to natural hazard.