Check that your home is properly covered in the event of a bushfire

If you have AAMI Home Building Insurance, your home is covered in the event of a bushfire.

However, it's critical that you make sure it's insured for enough to rebuild it completely in the event it is burnt down.

Changes in building standards and regulations mean that replacement homes must be built to better withstand natural disasters – which add to the rebuild cost. Additionally, the average cost of rebuilding homes has increased over time – particularly for custom-built homes – so it's wise to make sure your home is insured for the correct amount, today.

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A typical four bedroom home in a high risk bushfire area (BAL code FZ) can cost more than $100,000 extra to rebuild owing to new standards to fire-proof homes.

Changes to the national building code

The national building code was amended in 2010 following the Black Saturday fires. This means properties in at-risk areas now have Bushfire Attack Level (BAL) ratings and must be built using specific design and materials such as gutter guards to reject leaves, window shutters and non-combustible decks. These changes can significantly increase the cost to rebuild.

The table opposite outlines the risk rating based on the area a home is built in, and the potential additional rebuild cost.

Bushfire Attack Level (BAL)
Bushfire Loading*

BAL FZ (Flame zone)

$65,000 - $277,000 +

BAL 40

$19,000 - $73,000 +

BAL 12.5 to 40

$16,000 - $56,000 +



Do you have AAMI Complete Replacement Cover®?

If you have AAMI Complete Replacement Cover®, increasing your sum insured does not apply to you, but it is important to know we do not cover:

  • upgrading undamaged parts of the building to comply with the current home building regulations and laws
  • making the building comply with home building regulations and laws that existed but were not complied with when the building was originally built or altered.

This is our best protection against underinsurance. If your building is damaged or destroyed by an insured event, we'll repair or rebuild your house as it was, or pay you the amount of the assessed quote to repair or rebuild it.

Should the worst happen, we're here to help you!

In the event of a total loss of your property, as well as paying for rebuilding your home, we also cover the following additional features:

  • Temporary accommodation up to 12 months, while your repairs take place
  • Demolition and removal of debris
  • Cost of complying with building regulations, codes and laws – unless they existed but were not complied with when the building was originally built or altered.
  • Professional fees, such as architects or surveyors

Some limits apply to the above covers – for more information, look in the  "Additional Features" section of the PDS.

Limits and exclusions apply.

Our Home building Insurance Options

Sum Insured

  • Set a limit on the cost to rebuild your home
AAMI Complete Replacement Cover icon

Complete Replacement Cover

  • Don't set a limit on the cost to rebuild your home
  • We'll cover the cost of repair or rebuild
  • Or pay you the amount of the assessed quote to repair or rebuild it.

* Based on sqm costs supplied by Cordell. Range includes incremental bushfire loading for a 4-bedroom to 8-bedroom house for all wall types.
Typical building replacement costs are provided by Cordell Information Pty Ltd (ABN 95 159 137 274) ("Cordell") on the basis that whilst every care is taken to ensure the accuracy of the information as a guide for costing, no responsibility is accepted by Cordell for its accuracy. For an accurate estimate of an individual property you will need to contact a Builder, Quantity Surveyor, Valuer or other suitably qualified professional.

Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement (PDS) before you make any decision regarding this product. The Target Market Determination is also available.

Exclusion for new policies. We do not insure you for bushfire, storm, storm surge, flood or tsunami in the first 72 hours of your policy. Very limited exceptions apply. For full details, read the PDS.

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Victorian State Emergency Service

AAMI has proudly supported the Victorian State Emergency Services since 2002, contributing millions of dollars in equipment and tools to support their work.