Property damage can happen without warning. Whether it is a bushfire tearing through regional land, a severe storm ripping off roof sheeting, or a burst pipe flooding your living room, the aftermath is stressful enough without having to figure out the insurance claims process from scratch.
In Australia, property damage insurance covers a wide range of events including natural disasters, accidental damage, and vandalism. The Insurance Council of Australia reported that the 2019-2020 bushfire season alone generated over $2.2 billion in insured losses. Queensland's severe weather events in 2023 caused an estimated $3 billion in claims. These figures show how frequently Australian property owners deal with significant damage events.
This guide walks you through the entire claims process, from the moment you discover damage through to settlement or dispute resolution.
Common Causes of Property Damage in Australia
Australia's climate and geography make properties particularly vulnerable to a range of damage events. Understanding the most common causes helps you assess your coverage needs and respond quickly when something goes wrong.
Bushfires remain one of the most destructive forces affecting Australian properties. The Black Summer fires of 2019-2020 destroyed over 3,000 homes across New South Wales, Victoria, and South Australia. Even properties not directly in the fire path can suffer smoke damage, ember attack, and radiant heat exposure.
Severe storms and cyclones cause widespread damage across Queensland, New South Wales, and the Northern Territory each year. Hail, high winds, and torrential rain can compromise roofing, windows, fencing, and structural elements in a matter of hours.
Flooding from both riverine events and flash flooding affects thousands of properties annually. Many homeowners are surprised to learn that flood cover is not always included in standard home insurance policies.
Burst pipes and internal water damage are among the most common claims lodged with Australian insurers. A slow leak behind a wall can cause significant structural deterioration and mould growth before it is detected.
Vandalism and malicious damage also fall under most property damage policies. This includes graffiti, broken windows, forced entry damage, and deliberate destruction.
What Does Property Damage Insurance Cover?
Most Australian home and contents insurance policies cover damage caused by storms, fire, lightning, explosion, theft, vandalism, and impact events. However, coverage varies significantly between insurers and policy types.
Before filing a claim, you need to understand several key aspects of your policy:
- Sum insured: the maximum amount your insurer will pay out for a claim
- Excess or deductible: the amount you pay before the insurer covers the rest
- Listed events: specific events your policy covers (some policies are named-peril only)
- Exclusions: events or damage types specifically not covered, such as flood, gradual deterioration, or lack of maintenance
- Sub-limits: caps on specific categories like temporary accommodation, fencing, or contents
Review your Product Disclosure Statement (PDS) carefully. If anything is unclear, contact your insurer or broker before lodging a claim.
Step-by-Step Guide to Filing Your Claim
Filing a property damage claim involves several stages. Following a structured approach improves your chances of a fair and timely outcome.
Assess the Damage and Ensure Safety
Before documenting anything, make sure the property is safe to enter. If there is structural damage, exposed wiring, or ongoing risk from fire or flooding, stay clear and contact emergency services. Once it is safe, conduct a thorough walkthrough and note every area of damage you can see. Do not attempt repairs beyond what is necessary to prevent further damage.
Document Everything Thoroughly
Take extensive photographs and video of all damage from multiple angles. Include wide shots that show the overall extent and close-ups of specific damage. Photograph damaged contents, structural elements, roofing, fencing, and any water lines or soot marks. Write dated notes describing what happened, when you discovered the damage, and what conditions were like. Keep damaged items until the insurer confirms they can be disposed of.
Review Your Insurance Policy
Read your PDS and certificate of insurance carefully. Check what events are covered, what your excess is, whether there are sub-limits that apply, and any conditions you must meet (such as notification timeframes). Understanding your policy before you call your insurer helps you ask the right questions and avoid misunderstandings.
Notify Your Insurer Within 48 Hours
Contact your insurer as soon as possible, ideally within 48 hours of discovering the damage. Most insurers have dedicated claims lines and online portals. When you call, have your policy number ready along with a summary of what happened. The insurer will open a claim file and provide you with a claim reference number. Ask about any immediate steps they require, such as obtaining emergency repair quotes.
Obtain Professional Assessments
Depending on the severity of the damage, your insurer may send a loss adjuster to inspect the property. You also have the right to obtain your own independent assessments. Engaging a licensed building inspector to prepare an independent damage report strengthens your claim by providing objective, professional documentation. Get written repair quotes from licensed tradespeople for all affected areas.
Submit Your Formal Claim
Compile all documentation and submit your formal claim. This should include your completed claim form, photographs and video evidence, your independent inspection report, repair quotes, receipts for emergency repairs already completed, and any supporting documents such as council records or weather reports. Submit everything in writing and keep copies of all correspondence.
Follow Up and Negotiate if Needed
Your insurer has specific timeframes to respond under the General Insurance Code of Practice. They must acknowledge your claim within 10 business days and make a decision within four months for non-complex claims. If their offer seems low, you can negotiate. Present your independent inspection report and repair quotes as evidence. You are not obligated to accept the first offer.
Common Mistakes to Avoid
Many property owners inadvertently weaken their claims by making avoidable errors during the process.
Delaying Your Claim Submission
Waiting too long to notify your insurer creates problems. Insurers may question why you delayed, and evidence can deteriorate or be cleaned up in the meantime. Some policies have strict notification requirements. Lodge your claim promptly, even if you are still gathering documentation.
Insufficient Documentation
A claim supported only by a verbal description and a few blurry photos is far weaker than one backed by comprehensive visual evidence, an independent inspection report, and multiple repair quotes. Take the time to document everything before any clean-up or temporary repairs begin.
Overlooking Policy Exclusions
Assuming your policy covers a particular type of damage without checking can lead to disappointment. Flood, storm surge, and gradual damage exclusions catch many policyholders off guard. Read your PDS before you lodge your claim so you can address potential coverage issues early.
Accepting the First Offer Without Question
Insurers aim to settle claims efficiently, but their initial offer may not fully reflect the cost of proper repairs. If you believe the settlement is too low, request a detailed breakdown of how they calculated the figure. Compare it against your own repair quotes and independent assessment. You have the right to negotiate.
Disposing of Damaged Items Too Early
Throwing away damaged items before the insurer or loss adjuster has inspected them can undermine your claim. Keep everything in place until you receive written confirmation that items can be disposed of.
Dispute Resolution Through AFCA
If you cannot reach a satisfactory outcome with your insurer through direct negotiation, you can escalate the matter to the Australian Financial Complaints Authority (AFCA).
AFCA is a free, independent dispute resolution scheme that covers complaints about insurance products. Before lodging a complaint with AFCA, you must first go through your insurer's internal dispute resolution (IDR) process. If the IDR outcome is unsatisfactory, or if the insurer fails to respond within the required timeframe, AFCA can step in.
The AFCA process involves reviewing all documentation from both parties, conducting an investigation, and making a binding determination if the complaint cannot be resolved by agreement. AFCA can award compensation up to $1,085,000 for general insurance disputes.
To lodge a complaint, visit the AFCA website at afca.org.au or call 1800 931 678. There is no cost to the consumer for using this service.
The Role of Independent Building Inspectors
While your insurer will typically send their own assessor or loss adjuster, these professionals work for the insurance company. Obtaining an independent building inspection report gives you a separate, unbiased assessment of the damage and required repairs.
An independent report from a licensed building inspector can identify damage that the insurer's assessor may have missed or undervalued. It provides a professional, documented basis for negotiating a higher settlement. This is particularly valuable for complex claims involving structural damage, concealed water damage, or fire-affected building elements.
Independent reports carry significant weight in AFCA disputes because they demonstrate that you have obtained professional evidence to support your position.
Frequently Asked Questions
QHow long do I have to file a property damage insurance claim in Australia?
Most insurers require notification as soon as reasonably possible, with many policies specifying a 48-hour to 30-day window. However, the General Insurance Code of Practice recommends notifying your insurer immediately. The sooner you lodge your claim, the stronger your position. Delays can raise questions about the legitimacy or extent of the damage.
QWhat documents do I need to submit with my insurance claim?
You should submit photographs and video of all damage, a completed claim form, your policy number and details, a written account of the event, repair quotes from licensed tradespeople, receipts for emergency repairs, and any independent inspection reports. Supporting documents such as weather bureau records, police reports (for vandalism or theft), and council correspondence can also strengthen your claim.
QWill my insurance premium increase after making a claim?
It is possible. Insurers consider your claims history when calculating premiums at renewal. A single claim may not cause a significant increase, but multiple claims within a short period can lead to higher premiums or changes to your policy terms. Weigh the cost of the damage against your excess and the potential premium impact before deciding whether to claim.
QWhat is the difference between a loss adjuster and an independent building inspector?
A loss adjuster is appointed and paid by the insurance company to investigate and assess your claim on their behalf. An independent building inspector is engaged by you and works solely in your interest. The independent inspector provides an unbiased assessment of the damage, which you can use to support your claim or challenge the insurer's assessment.
QDoes my home insurance cover flood damage?
Not always. Many Australian home insurance policies now include flood cover, but some do not, or they offer it as an optional add-on. Check your PDS carefully for definitions of "flood" versus "storm water" or "rainwater runoff," as these distinctions affect coverage. If your property is in a flood-prone area, confirm your flood cover status with your insurer.
QCan I choose my own repairer or do I have to use the insurer's preferred contractor?
In most cases, you have the right to choose your own repairer. However, if you use the insurer's preferred contractor, the insurer typically guarantees the repair work. If you choose your own repairer, the insurer may limit payment to the amount their preferred contractor quoted. Discuss this with your insurer before commencing repairs.
QWhat should I do if my claim is denied?
First, request a written explanation of the denial, including the specific policy clause the insurer is relying on. Review the denial against your PDS and the circumstances of the damage. If you disagree, lodge an internal dispute through the insurer's complaints process. If the internal resolution is unsatisfactory, escalate to AFCA for an independent review.
QHow long does the insurance claims process take in Australia?
Under the General Insurance Code of Practice, insurers must acknowledge your claim within 10 business days and make a decision within four months for standard claims. Complex claims involving large-scale events may take longer. If your claim is delayed, ask your insurer for a written update on the timeline and reasons for the delay.
QCan I make emergency repairs before the insurer inspects the property?
Yes, you can and should take reasonable steps to prevent further damage. This includes tarping a damaged roof, shutting off water to a burst pipe, or boarding up broken windows. Keep receipts for all emergency repairs, take photos before and after, and inform your insurer of the work completed. Most policies require you to take reasonable steps to mitigate further loss.
QWhat is the AFCA process for insurance disputes?
AFCA is a free, independent dispute resolution service. After exhausting your insurer's internal complaints process, you can lodge a complaint with AFCA online or by phone. AFCA will review the claim, gather information from both parties, and attempt to reach an agreement. If agreement cannot be reached, AFCA issues a binding determination. The process typically takes several weeks to a few months depending on complexity.
QDo I need an independent inspection report for every insurance claim?
Not every claim requires one, but independent reports are strongly recommended for claims involving significant structural damage, disputed valuations, or complex damage patterns. For minor claims such as a broken window or small section of damaged fencing, an independent report may not be necessary. For claims over a few thousand dollars, the investment in an independent assessment often pays for itself through a more accurate settlement.
QWhat happens if the damage was caused by poor maintenance rather than a sudden event?
Most property damage insurance policies exclude damage resulting from lack of maintenance, wear and tear, or gradual deterioration. If the insurer determines that the damage was caused by neglected maintenance rather than a sudden or accidental event, your claim may be denied. Maintaining your property in good condition and keeping records of maintenance work supports your position if this issue arises.
Key Takeaways
- Notify your insurer within 48 hours of discovering property damage to protect your claim
- Document all damage thoroughly with photographs, video, and written notes before any clean-up begins
- Review your Product Disclosure Statement to understand coverage, exclusions, excess amounts, and sub-limits
- Obtain an independent building inspection report to support your claim with unbiased professional evidence
- Get multiple written repair quotes from licensed tradespeople to substantiate your claimed amount
- Do not accept the first settlement offer without comparing it against your own documentation and quotes
- Keep all damaged items in place until the insurer confirms they can be disposed of
- Escalate unresolved disputes to AFCA for free, independent resolution
References and Resources
Related Articles
What is an Insurance Claim Assessment?
Insurance claim assessments evaluate property damage, review policy coverage, and determine appropriate compensation. Learn the process and documentation requirements.
How Does Weather Affect Property Inspection Reports in Australia?
Weather conditions directly impact property inspection outcomes. Learn how storms, rain, heat, and seasonal changes affect building assessment findings across Australia.
How to Build a Resilient Home for Extreme Weather in Australia
Building a home that withstands extreme Australian weather requires careful material selection, design, and compliance with current standards.
Need a Professional Damage Assessment for Your Claim?
Our licensed building inspectors provide independent property damage reports that support insurance claims across Australia.