In Australia property insurance is not mandatory unless it is required under a contract such as in a commercial lease or a loan agreement. However property insurance is an important form of protection against events such as:

• fire;
• hurricanes;
• theft; and
• flood.

Home insurance policies protect policy holders from financial loss where their home or its contents are lost or damaged. Two types of property insurance policies are available.

• Home insurance cover protects your home building if it is damaged or destroyed by an insured event such as fire.
• Home contents cover that protects your possessions and items that you keep inside your home.

You can choose to insure your property, its contents or both. Contents insurance covers items inside the house such as furniture, televisions and personal belongings. Higher insurance rates may apply if you wish to cover specific expensive items such as jewellery and antiques.

Insurance contracts have a ‘cooling off period’ that allows the contract to be cancelled within a specific timeframe. This gives the policy holder time to review the insurance documents and get legal advice.

When you make a claim on your property insurance policy the insurer may pay your claim in full, refuse your claim or only agree to pay a reduced amount. You can dispute the insurer’s decision through a specific complaint procedure. Property insurance disputes involve a lot of contract law as when you signed the insurance policy you entered into a contract with your insurer. Legal representation is not always necessary but it can help you navigate this complex area of law.

The first step in disputing the insurer’s decision is to use the insurance company’s internal dispute resolution process. Legal representation is not usually required at this point but if you are unsuccessful with an internal review a lawyer can help you through the next steps in resolving the dispute.

This Legal Guide on Property Insurance Law provides consumers with information about property insurance generally in Australia and specifically in New South Wales. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.