Home insurance in bushfire areas: what to check
Most Australian home and contents policies cover fire, including bushfire, as a standard listed event. The things that decide whether a bushfire claim pays in full are narrower: whether the policy was in force long enough, how the policy defines fire damage, and whether the sum insured is enough to rebuild to the construction standard your site now requires.
That last point is the one that catches bushfire-area owners. A house in a bushfire-prone area may need to be rebuilt to a higher Bushfire Attack Level standard than the one it replaced, and that can add significantly to the rebuild cost. Our guide to home and contents insurance covers the other events a policy lists.
By Better Rate Mate Editorial Team ยท Last reviewed
General advice only. It doesn't consider your circumstances. Read the PDS and TMD before you decide.
How fire cover works
Moneysmart explains that generally a flame has to cause the damage. Heat-related damage such as scorching and melting, and smoke, ash and soot damage, may not be covered when the flame itself did not reach your home. Some policies are more generous than others on smoke and heat damage, so this is a definition worth comparing.
Common fire exclusions listed by Moneysmart include a bushfire that occurs less than 72 hours after you bought the policy, intentionally lit fires, fires caused by negligence or recklessness, and homes that do not comply with fire regulations, for example a heater that was not installed properly.
The 72-hour rule
Some insurers do not cover bushfire, and often storm and flood, in the first 72 hours of a new policy, so people cannot buy cover as a fire approaches. Suncorp's home PDS (prepared 31 January 2025) excludes bushfire, storm, storm surge, flood and tsunami in the first 72 hours, unless the policy starts on the day you become the owner or the day a previous policy expired. Allianz's home PDS (from 20 July 2025) excludes cyclone, flood, grassfire and bushfire for 72 hours after you take out a policy or increase cover, except on renewal, a same-day purchase contract or a replacement policy with no gap. Both still apply the 72 hours to any increase in the sum insured. Not every insurer has this clause (we did not find it in NRMA's September 2023 PDS), which is exactly why you should check. If you are switching insurers during fire season, start the new policy before the old one ends.
Bushfire Attack Level ratings and what they do to a rebuild
A Bushfire Attack Level (BAL) measures how exposed a building site is to ember attack, radiant heat and direct flame, based on vegetation, slope and distance. It is assessed under Australian Standard AS 3959, and in bushfire-prone areas it decides the construction requirements for new homes and rebuilds.
The higher the BAL, the stricter and usually more expensive the construction: ember-proof screens, toughened glass, non-combustible cladding and decking, and at the top levels specialist design. If your home was built before bushfire construction rules applied to your site, a rebuild may need to meet a standard the original house never did. That cost has to be inside your sum insured, or inside a rebuilding buffer.
| BAL | Main exposure | Effect on construction |
|---|---|---|
| BAL-LOW | Insufficient risk to warrant specific requirements | No specific bushfire construction requirements |
| BAL-12.5 | Ember attack | Ember protection for openings and vents |
| BAL-19 | Increasing ember attack and burning debris | Stricter materials for windows, doors and decks |
| BAL-29 | Ember attack, debris and increasing radiant heat | Toughened glass, more fire-resistant cladding |
| BAL-40 | Increasing radiant heat and likely flame exposure | Substantial upgrades throughout the building envelope |
| BAL-FZ (Flame Zone) | Direct flame contact | Specialist design; building may be restricted |
Setting a sum insured for a bushfire-prone home
Start with a detailed building calculator and tell it your BAL if it asks. Then add the costs Moneysmart lists as commonly missed: demolition and site clean-up, asbestos removal, council fees, professional fees and temporary accommodation. After a large fire, demand for builders and materials in one region can push costs up at exactly the time you need to rebuild.
Check whether the policy includes a rebuilding buffer above the sum insured, whether it pays for debris removal and professional fees on top of the sum insured or within it, and how long temporary accommodation lasts. A major rebuild can take a long time, and the accommodation benefit often runs out first.
Before fire season
The most useful preparation is administrative as much as physical.
- Check your sum insured against current rebuild costs and your BAL.
- Photograph or film every room and the outside of the house, and store it off-site.
- Confirm your policy renews before fire season and has not lapsed.
- Clear gutters and keep vegetation managed. Some policies can reduce cover where maintenance was neglected.
- Keep a copy of your policy number and insurer's claims line with your emergency plan.
General advice only. This information doesn't take into account your objectives, financial situation or needs. Consider whether the product is right for you and read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you decide. We don't compare every product in the market, and we may earn a commission if you take up a product through our links.
What to watch for
- The 72-hour exclusion applies to new policies. Do not leave a gap when switching insurers.
- Smoke, soot and heat damage without flame contact may not be covered.
- Rebuilding to a higher BAL standard can cost much more than replacing like for like.
- Temporary accommodation benefits are capped and can run out during a long rebuild.
- Grass fires and bushfires are usually treated the same, but check the definition.
Common questions
Does home insurance cover bushfire?
Most home and contents policies cover fire, including bushfire, as a standard event. Exclusions can include bushfire in the first 72 hours of a new policy and damage from heat or smoke without flame contact.
Can I get home insurance in a bushfire-prone area?
Usually yes, although premiums reflect the risk and some high-risk properties may have fewer insurers willing to quote. Getting several quotes, and giving accurate information about construction and BAL, matters.
What is the 72-hour rule in home insurance?
An exclusion some insurers use, including Suncorp and Allianz, under which bushfire and certain weather events are not covered in the first 72 hours after a new policy starts or cover is increased. It generally does not apply if you are replacing continuous cover or have just bought the home.
Does a BAL rating affect my insurance?
It affects what a rebuild would cost, because higher BAL ratings require more fire-resistant construction. Your sum insured needs to reflect that, and some insurers ask about it when pricing.