What is AAMI Complete Replacement Cover?


Many home insurance policies ask you to set a sum insured — that is, a fixed amount for which your home is covered, and which is the most your insurer will pay if you need to claim. But if, for example, there are shortages in building materials, or increased demand for tradies after a big weather event, rebuilding costs can spike. In that case, your sum insured might not be enough. That’s where Complete Replacement Cover can help.

What is Complete Replacement Cover?

Only a handful of insurers, like AAMI, offer total building replacement cover. Our Complete Replacement Cover is an optional cover that can be added to our home and landlord insurance policies. This level of cover can give you peace of mind that we'll repair or rebuild your home as it was — or pay you the amount of the assessed quote to do so — without you having to set a specific sum-insured limit.

Explore Complete Replacement Cover

Complete Replacement Cover vs Sum Insured Cover

Unlike Complete Replacement Cover, Sum Insured Cover will insure your home to an amount specified by you. It’s standard with most home and contents insurance policies, but can increase your risk of being underinsured — which happens if the cost of rebuilding your home is higher than estimated. If your estimate comes in higher than your insured amount, you may have to dip into your own pocket for your rebuild, or settle for a rebuilt home that’s not quite up to the standard of your old one.

Ways to avoid underinsurance

Underinsurance occurs when you don’t have enough insurance to rebuild your home, or recover your contents, after an event like fire or theft. It’s fairly common, too – approximately 50% of Australian’s don’t have adequate cover for their assets1. If you’re concerned about being underinsured, there are a few things you can do to avoid it:

  • Make sure your policy is up to date, and that you know what is and isn’t covered by it.
  • Update your policy to include any additions to your home, such as renovations or fancy inbuilt appliances.
  • Add Complete Replacement Cover to your policy for an extra premium.
  • Assess the value of your home and contents accurately – check out our Home Building and Contents Calculators to get an estimate.

AAMI customers can keep their your policies up to date through the AAMI App. Use it to see your policies in one place, update your details, and make or manage any claims.

Download the AAMI App

How to get AAMI Complete Replacement Cover 

Maybe you’ve just bought your first home, or you’re finally living in the house of your dreams after working hard for it. No matter your situation, optional Complete Replacement Cover might be worth considering – simply select the AAMI Complete Replacement Cover optional cover when you get an AAMI Home or Landlord Insurance quote.

Get a home insurance quote