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Fact Sheet 4: What it would cost you to replace everything you own

This fact sheet is one of a series that looks at the steps you can take to give yourself the best chance of fixing or replacing your property and belongings if they're damaged or destroyed in a natural disaster, such as a bushfire, flood or storm.

See Fact Sheet 18: Glossary for definitions of words and terms that are in bold text.

To find other fact sheets in the series go to www.InsuranceCheckup.tas.gov.au or visit your local Service Tasmania for an info pack.

Insuring your home and belongings

Losing everything in a natural disaster is devastating. While nothing can compensate for losing your home and priceless belongings, being insured can help you pick up the pieces (see Fact Sheet 2: How insurance works).

If you own or are buying your home:

  • you are responsible for insuring the building and its fixtures (e.g. light fittings, carpets, ovens, stovetops and window coverings), as well as items that belong to you (the contents)
  • you can buy separate home insurance and contents insurance, but many insurers offer a linked package that will cover your home AND your belongings (see Fact Sheet 5: Home insurance and contents insurance).

If you rent your home:

  • you are responsible for just contents insurance – insurance for the items that belong to you
  • your landlord is responsible for insuring the building itself, along with any fixtures (see Fact Sheet 9: Renters insurance).

If you are a landlord or operate a short-stay rental property:

  • this is considered to be a business activity and is not usually covered under a typical home and contents insurance policy
  • you are still responsible for insuring the building and its fixtures, as well as any items that belong to you (see Fact Sheet 10: Landlord insurance).

Working out what it would cost to rebuild your home

The cost of rebuilding your home isn't the same as its real estate value. Your sum insured (if you choose this type of cover) should be based on the cost to rebuild your home to the standard it is today.

  • Building costs increase every year and building standards also change over time. This may add to the costs of rebuilding your home if it's damaged or destroyed. It's important to take this into account when buying insurance or updating your current insurance policy (see Fact Sheet 13: Managing and updating your insurance).
  • An online calculator is usually a good starting point. Most insurers have a calculator on their website, or you can use the Insurance Council of Australia's building calculator on the Resources page of their website at www.understandinsurance.com.au.
  • For a more accurate assessment, get a quote from a well-respected builder or surveyor for the cost of a complete rebuild and check with your insurer that your sum insured will cover this cost.

If you live in a natural disaster-prone area

If you live in an area that is exposed to bushfires, floods, storms or other extreme weather events, there may be extra natural disaster building standards that would apply that might increase the cost of rebuilding, renovating or extending your home.

You might have to include certain features such as bushfire shutters that act as ember and heat screens, or use special materials such as fire-retardant timbers for decks. This could all cost more than if you were rebuilding in a different area without the same natural disaster risks.

Your local council should be able to tell you which building standards apply to your area, and a builder can tell you how much they would cost to put in place. Check the Tasmanian Councils page on the Local Government Association of Tasmania's website at www.lgat.tas.gov.au to find out which council area you live in and its contact details.

There may be some changes you can make to your home NOW to help improve its resilience to natural disasters and potentially lower your insurance premium. Contact your insurer, local council or the emergency services for advice.

Other things to think about

Working out what it would cost to replace your belongings

In a natural disaster, you might lose all or most of your belongings. You may not think that you have much that is worth insuring, but if you make a list of the things you own and work out what it would cost you to replace them, you might be surprised!

  1. The first step is to make a list of your belongings (also known as a household inventory). This should include everything from furniture and furnishings, to internal blinds and curtains, electrical appliances (e.g. refrigerators), televisions, electronics (e.g. computers), tools and gardening equipment, toys and sporting equipment, as well as clothing, jewellery and other personal items.
  2. When you have done your household inventory, work out what it would cost to repurchase each item on your list. The Insure it. It's worth it guide available from the Victorian Government's website at www.insureit.vic.gov.au has a list of common household items, and their average value, to get you started on your household inventory.
  3. Many insurers have online calculators on their website to help you work out the value of your belongings, or you can use the Insurance Council of Australia's contents insurance calculator on the Resources page of their website at www.understandinsurance.com.au.

Resources

For general information, and for calculators and other tools to help you manage your own insurance:

Important notice

This fact sheet gives you basic and general information only. It does not cover every situation or everything you may need to know about insurance. It does not take into account your personal circumstances. Make sure you carefully read Key Facts Sheets and Product Disclosure Statements. Ask your insurer as many questions as you need in order to understand how your insurance policy will work for you. Use other tools available to you and seek professional advice if needed.

Information in these fact sheets has been drawn from a number of publicly available Government and non-Government resources.

This project has been jointly funded by the Commonwealth and Tasmanian Governments under the Disaster Recovery Funding Arrangements.