Does home insurance cover termite damage in Australia?
Not in the home insurance wordings we read. They exclude damage caused by termites, insects and vermin. One wording still covers a fire or escape of liquid that insects or vermin cause, as that is a separate listed event.
- Source
- Home insurance PDSs from two Australian insurers (exclusions sections)
- Updated
Home Insurance — Termite Damage
The home insurance wordings we read exclude damage caused by termites, insects and vermin. The scope differs between policies, and one wording keeps cover where insects or vermin cause a separately listed event such as fire or escape of liquid.
The Exclusion
Every wording we read excludes this damage:
▹ One insurer's home policy excludes loss or damage caused by "rats, mice, vermin, insects, termites, bats or possums" and by birds pecking, scratching or biting, as a general exclusion that applies under every section of the policy. Source: home insurance PDS, Exclusions section.
▹ The same insurer's accidental damage home policy excludes damage caused by "rats, mice or insects". Source: accidental damage home PDS, Exclusions section.
▹ A listed-events home policy from a second insurer excludes damage caused by insects, vermin or rodents, with the exceptions below. Source: listed events home PDS, What is not covered section.
When Related Damage Can Still Be Covered
The listed-events wording keeps cover where insects, vermin or rodents cause a separately covered listed event:
▹ Fire caused by insects, vermin or rodents.
▹ Escape of liquid caused by insects, vermin or rodents, for example a chewed pipe.
The same wording covers damage by an animal that becomes accidentally trapped inside the building, as long as it does not belong to you or anyone living at the address, but this does not extend to insects, vermin or rodents. Source: listed events home PDS, What is not covered section.
What to Look For in Your PDS
▹ General exclusions mentioning insects, vermin, pests, termites or white ants.
▹ Exclusions for gradual deterioration or failure to maintain the property.
▹ Whether a fire or escape of liquid caused by pests is treated as a covered event.
Important Notes
Wordings differ between insurers, and retail and broker-arranged policies can have different limits and conditions. The excerpts reviewed may not capture every condition or exception. Check the PDS and schedule for your own policy, or ask your broker.
Factual information from the policy wordings cited above, at the date above. It is not personal advice, financial product advice or a recommendation, and cover depends on your policy, schedule and circumstances. PolicyAI can make mistakes: check the current Product Disclosure Statement (PDS) or ask your broker before relying on it. Spotted an error? Tell us. See our disclaimer.
Have a question about your own policy?
Ask PolicyAI and get a sourced report like this one. Your first questions are free, no account needed.
Ask a question