Current Building Standards

Does your insurance hold up?

A recent report by NIBA suggests that the (increased) current building standards that have been introduced over the past four (4) years may lead to underinsurance issues.


Following the bushfires in the Blue Mountains (west of Sydney) in 2013, some of the more than 200 houses lost in these fires will not have sufficient insurance for a current replacement cost of their buildings. NIBA advised, “the building standards apply to new buildings (which includes the rebuilding of residences lost in the fires) and major renovations/repairs in areas that may be affected by fire, and operate to increase the cost of rebuilding.This has led to a number of properties being underinsured in the Blue Mountains area.”


With the home-renovator culture well-instilled in Australian life, many home-owners are performing improvements and renovations themselves. Property owners need to consider they aren”t insuring their costs of work, but insuring the cost of a qualified builder. As such your insurance needs to reflect those increased costs. As well as consideration for current building standards applying to any past renovation you have conducted.


Insuring your property is not enough.  Underinsurance is a serious problem and it is critical to establish an appropriate sum insured as replacement for your building to have the appropriate level of cover in place.

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