Insurance is a way to manage your financial risk by purchasing protection against unexpected financial losses.

Discover below which different types of insurance you can take out, the coverage involved and ways to compare different insurance brokers' quotes.

The information below does not make any recommendation of insurance products, providers or commercial decision. It is the responsibility of the home buyer to work out what is best for them.

How much does insurance cost?

Insurance costs vary based on the value of your property, the level of coverage desired, your location, the construction type, any security features and your claims history.

It's recommended to gather multiple quotes from insurers to understand the value of your coverage and market options. Common terms used in insurance quotes include...

• Premium: the base cost of the insurance product.
• Excess: is the out-of-pocket amount you have agreed to pay when making a claim with your insurance. Most insurance policies will have an option to reduce your premium by paying a higher excess. 
• Exclusions: what is not covered when making an insurance claim. It’s important to check if the product you’re researching has any exclusions, caps, limits or other conditions. 
• Cover limits: the maximum limit on how much you can claim for certain items.
• Extended cover: this is a feature that allows you to add extra value to the total cost of what is being insured (like all your valuables) so that you're not underinsured if there’s a total loss. 

You can talk to an insurance broker about your needs and they will be able to advise you about the best policy in your circumstances. Like mortgage brokers, insurance brokers are typically paid via commission so there is no upfront cost to the homebuyer.

How to make an insurance claim

When making an insurance claim, you must try and contact your insurer as soon as practical after the event or incident.

Your insurer will provide you with information about what happens next, what documents need to be submitted and the timelines for when processing and payment may occur.

If you require immediate support, like for instance if you need emergency housing, you will need to discuss this with your insurer. They will provide you with options.

If you are unsure about how to submit a claim, call your insurance company or look for information on their website.

Looking out for scammers

If you are purchasing insurance, is important to look out for scams.

If you feel like you are being pressured by an insurance company or that there is something wrong with how you are treated, you can contact the Federal Government's National Anti-Scam Centre Scamwatch.

Additionally, the Australia Competition and Consumer Commission (ACCC), a government agency, regularly has an Indigenous Outreach program that shares scam warnings. You can visit the Your Rights Mob Facebook page to see more.