Just the facts please: are these home insurance myths costing you money?

When was the last time you thought about what it would cost to rebuild your home from scratch? Doing so could be the difference between being fully covered by your home insurance and ending up thousands of dollars out-of-pocket. This is especially important as weather events increase in scope and severity, and construction costs continue to climb.
Given these stakes, it’s important to change your assumptions about how home insurance works. To help you, we’re going to bust a few myths that might be keeping home owners under water.
Myth 1: I have to wait for my renewal date to switch
Choosing to pay your premium annually doesn't lock you into that policy for the full year. You still have the freedom to cancel at any time.
If you switch, your insurer will provide a pro-rata refund for the unused time. There is usually a small, fixed cancellation fee, but this often won't be much more than a few months' worth of your annual discount. You'll find the exact figure in your policy documents, but the freedom to move to a better and/or cheaper home insurance policy could very well be worth this minor cost.
Myth 2: If I switch, I lose my ‘no claims discount’
The fear of losing a hard earned discount is, thankfully, unfounded since your history as a safe homeowner is generally portable. If you move to a new insurer that also offers a ‘no claims discount’ (or ‘no claims bonus’), you’ll just need to provide your new provider with proof of your claims history, which you can get from your previous insurer.
Myth 3: My sum insured automatically covers rising building costs.
ABS data still points to rising construction costs, which means it's probably becoming more expensive to rebuild your home from scratch if the worst happens. And to add insult to injury? You’re not always automatically covered for these surges.
If something happens to your home and you’re underinsured, you could end up on the hook for thousands in extra costs. To prevent this, you’ll need to update your policy every year to account for rising construction costs. Another strategy is to pay a bit extra for ‘underinsurance protection’, an add-on that will typically provide an extra 25% to 30% on top of your sum insured.
Myth 4: A standard policy covers me for all natural disasters.
Insurance policies cover a wide swath of natural disasters, but that doesn’t mean they cover them all. For example landslides are almost never covered when they occur on their own; floods may not be covered unless you have the flood add-on; and certain ‘actions of the sea’ can likewise be excluded. The only way to truly know if you’re covered for a particular natural disaster is to consult your policy documents or ring up your insurer for clarification.
Myth 5: All insurance providers are the same
Don’t just assume all home insurance policies are created equal. Just as every home is unique, each insurer designs their policies differently, with their own rules for what they will cover and how they price it.
This is why it’s so important to shop around. A good strategy is to create a shortlist by first comparing the details of a few policies, looking at their inclusions, exclusions and overall level of cover. Then get quotes for the ones you like so you can compare them accurately on price.
If you're unsure where to start, the 2024 Mozo Experts Choice Awards for Home Insurance is a great place to start. There you’ll find our winners for Best Quality Home Insurance and Best Value Home Insurance as determined by our experienced team of data experts.
Bottom line
Don't let outdated myths put your home and financial security on shaky ground. The best way to ensure your foundation is solid is by regularly reviewing your level of cover, understanding the details of what you're paying for, and taking the time to compare your options.
With that in mind, here are some policies you might like:
Top home insurance deals on Mozo
Youi Home and Contents Insurance^*

- Flood cover included as standard
- Cover for fire, theft and storms
- Mozo People's Choice winner for 2024
Protect your home and everything in it with Youi’s Home and Contents Insurance. This comprehensive policy covers you against flood, fire, theft, and storm damage. In the unfortunate event of a claim, Youi also offers up to $1,500 in counselling services for each household member to help you through tough times. Plus, for those with furry family members, you can add up to $1,000 in pet cover to assist with vet bills if your cat or dog is injured in an eligible household accident (T&Cs apply).
QBE Home & Contents Insurance^*

- 10% online policy discount (T&Cs apply)
- Up to $30 million legal liability cover (T&Cs apply)
- Mozo Experts Choice winner for 2024^
Safeguard your home and valuables with QBE Home and Contents Insurance. This policy protects against fire, storm damage, theft, and more, giving you peace of mind when you need it most. Enjoy 24/7 access to friendly and efficient claims service, and benefit from up to $30 million in legal liability cover. If your home becomes uninhabitable, QBE will cover temporary accommodation costs for up to two years, ensuring you're taken care of during difficult times (T&Cs apply).
Mozo Experts Choice Awards 2024: Exceptional Value Home and Contents Insurance, Exceptional Quality Home & Contents Insurance
Budget Direct Home & Contents Insurance^*

- 15% discount for combining Home & Contents covers and 15% discount for policies initiated online
- New-for-old contents replacement cover
- Mozo Experts Choice Exceptional Value and Quality Insurance 2024
This comprehensive home and contents insurance policy from Budget Direct offers an impressive list of extra features like new-for-old contents replacement, cover for portable items, and emergency accommodation for up to 12 months (or 10% of the sum insured) for you and your pets. You’ll be protected against a range of natural disasters and there’s a heap of contents included – just check your PDS for limits on specific items.
There are also some serious savings. Buy online and get 15% off your first year, plus another 15% off for combining home and contents insurance together (T&Cs apply).
Mozo Experts Choice Awards 2024: Exceptional Value Home and Contents Insurance, Exceptional Quality Home & Contents Insurance
Honey Home & Contents Insurance*

- Get free smart sensors worth $250 to help prevent fire, theft and water damage (T&Cs apply)
- Be rewarded with policy discounts of up to 8% every year (T&Cs apply)
Experience the future of home insurance with Honey Home and Contents Insurance. Honey uses cutting-edge AI technology to insure your home in as little as three minutes. Plus, Honey provides smart sensors valued up to $250 for free, helping you prevent incidents like theft, fire, and water damage by sending real-time alerts to your smartphone. These sensors could also lower your premiums by up to 8% every year (T&Cs apply).
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Home Insurance Awards