The refreshed AAMI Home Building Insurance PDS
At AAMI, we are always looking for ways to improve. So we’ve updated the AAMI Home Building Product Disclosure Statement (PDS) to incorporate more plain English principles (like more descriptive headings).
We’ve also made changes to the coverage in the policy. This involved altering or adding covers, conditions and exclusions. We have listed some changes below. Given the below is just a summary and not a list of all changes, we strongly encourage you to read the PDS to understand your cover.
A PDS is an important legal document that covers the details of the cover you’ve purchased. As it’s a legal document, it’s important you read it carefully. Know these changes relate to policies starting or renewing on or after 24 January 2025.
Using our products for financial abuse is unacceptable
AAMI is committed to ensuring our products are not used for any form of financial abuse. You’ll see we have made clear our position that the use of our products for financial abuse is unacceptable.
We know sometimes your circumstances might mean you need additional support or assistance in dealing with us. If you’re comfortable, you can tell us about your situation, and we’ll work with you to arrange support.
Things to know upfront
This section has changed. We’ll let you know when and how you need to pay your excess.
Rest assured knowing we’ll always communicate when you need to pay any excess(es) to us. Alternatively, we’ll deduct the amount of any excess(es) from any cash payment we make.
There is no longer any scenario for which we waive your excess.
What and where we cover – the basics
There are a few changes to this section of the PDS.
Previously, we didn’t cover any building or part of a building which is legally part of a strata title building according to the applicable strata laws in your state or territory. Now, we don’t cover any building (or part of a building) that’s covered under an insurance policy taken out by any owners corporation or similar body and/or is required to be insured by any owners corporation or similar body under the strata or community title laws applicable to that state or territory. Strata Insurance may offer this kind of coverage.
To see what else has changed regarding what we do and don’t cover as the building, go to the ‘What and where we cover – the basics’ section starting on page 19 of the PDS.
General exclusions
We want to be upfront about things we don’t cover for loss or damage under your policy. There are some new and updated exclusions in the ‘General exclusions’ section, such as:
- building works (this used to be called building extensions, alterations or renovations)
- hacking, cyber-attack, or cyber incident (this used to be called computer virus or computer hacking), and
- rust or corrosion (this used to be part of wear, tear and gradual deterioration exclusion).
Please make sure to read the General Exclusions section of your PDS.
General exclusions also apply to legal liability, but this isn’t always the case. Your PDS will outline when a general exclusion also applies to legal liability.
What we cover – the details
There are many changes to the Escape of liquid clause, and we strongly encourage you to read this section of your PDS in full.
These changes include providing cover for sudden and unexpected loss or damage to the building caused by liquid escaping from a number of listed items.
We also now provide cover for loss or damage, caused by liquid escaping from the items listed in the PDS, that has occurred gradually when the loss or damage, that was occurring, wasn’t easily visible to a reasonable person in the circumstances.
There are also updates to things we don’t cover under Escape of liquid too. Please read the new PDS to see all of these changes, starting on page 46.
There are some changes to when and under what circumstances you’re covered for loss or damage caused by impact (or by power surge caused by impact).
You’re still covered for loss or damage caused by impact from a falling tree or part of a falling tree including the roots, except when the tree, a part of it, or its roots are being carried in or by water or water is causing them to move.
For example, impact isn’t covered if a fallen tree damages your jetty while being carried in a river.
We also won’t cover loss or damage to the building caused by impact from any watercraft, aircraft, motor vehicles, or trailers that are stationary.
Please read the new PDS to see specifically what has changed.
Additional cover that comes with your policy
In our previous PDS, we had ‘Other repair/rebuilding costs’ and ‘Removal of debris’ as separate covers. We’ve combined them into one additional cover. Now on eligible claims, the most we’ll pay for any one incident is up to 15% of the building sum insured, unless your certificate of insurance shows that you have the Complete Replacement Cover® option, in which case we pay the reasonable and necessary costs.
The combined additional cover ‘Emergency repairs and other repair/rebuilding costs’ provides cover for emergency repairs and make safe, and other repair/rebuilding costs (like architects’ fees and removal of debris). Read the PDS for more details on this cover.
We’ve added a new additional cover – Lock replacement. This offers cover for the necessary costs you incur to replace or recode locks to the external doors or windows of the building at the insured address if the keys to those locks are stolen anywhere in Australia or New Zealand during the period of insurance.
The most we’ll pay for any one incident is $500. Read the PDS for more details on this cover.
There are some changes to additional cover ‘Temporary accommodation’. This includes an extension of temporary accommodation beyond the current limit if there are delays to the repair or rebuild of your building that are outside of your control when a builder we have engaged is undertaking the repairs or rebuild. This can include but isn’t limited to delays because of labour or material shortages.
Please see the PDS for more information on what this specifically means including limits, conditions and exclusions that apply.
Making a claim
Terms and words with special meanings (definitions)
Some terms and words in the policy have a special meaning (definition) which applies to them.
It’s important to read this section of the PDS because it gives the meaning which applies to those terms and words which can impact how your policy is interpreted.
There are new definitions in your PDS, including changes to existing ones such as:
We’ve updated this definition to mean sudden loss or damage that you didn’t intend or expect to happen.
We’ve updated this to mean land or building (or any part of the building) on strata title or community title at the insured address which is required to be insured by the owners corporation or similar body under the relevant strata laws and/or is insured under an insurance policy taken out by the owners corporation or similar body.
For example, common property in a multi-dwelling development.
This refers to the timeframe from when the construction of a new building at the insured address begins until the time the building is ready to be moved into, electricity and water services are connected and there is no outstanding work or the only remaining work to be done is installation of floor coverings, internal painting or installation of light fittings.
This means physical damage, unless stated otherwise in your policy.
This term means a standalone wall that isn’t connected at either end to a building or other structure, and not restrained along the top, like a brick fence.