Construction Materials

One of the first things you are asked when you take out home insurance is "What is your home made of?" If you've ever wondered why this matters, and what you can do about it, check our guide to your home's construction materials.

Consider the worst possible scenario...

If your property was completely destroyed in a fire, the cost of rebuilding it from scratch depends on the construction materials you use, where you live, and the quality standard you want. So when you take our buildings insurance, this is the sum you want to insure for. And then some - because there are plenty of other costs involved.

Brick or timber?

As an example, a very basic contemporary house in NSW could cost around $1200/sqm to rebuild in brick, and $900/sqm in timber. Double that if you want a quality standard. Add even more if you have a period home, with Victorian or Federation details. Your local council may require you to replicate it, even if you don't mind.

Other extras

The shape of your land - slope, flood-risk, accessibility - will also affect building costs. You may need to lay completely new foundations, or comply with new building codes. There's also the pool, deck, garden and garage to consider. And then there's the cost of clearing away the debris, and somewhere to live while you rebuild.

Future-proof your home

If you're building a new home, take the construction materials into account beforehand. If you're in a bushfire area, bricks may be a safer choice, and you should avoid building at the top of a steep slope - fires burn much faster uphill. If you're in a flood-prone area, you may need an elevated home to protect your possessions. And if you live in an area known for tropical cyclones, consider fitting metal screens or shutters to the windows. These measures could even reduce the cost of your home insurance premium.

It's your responsibility

Deciding how much you should insure your property for is completely up to you. Many online calculators underestimate the cost of rebuilding from scratch, and building costs could soar if a big natural disaster strikes. So if in doubt, check with a local builder. If you double your insurance, you won't necessarily double your premium - and you can look at increasing your excess if you also want to save money on your home insurance.