Home Insurance - How we work out your premium

Pricing Factors

The premium you pay for your insurance reflects the likelihood of you making a claim together with the potential value of any claim. So, if you have a lower chance of making a claim then you will generally pay a lower premium compared to someone who has a higher chance of making a claim.

Our experience shows there are a number of factors that are a good indicator of the possibility of a claim being made. We call these pricing factors.

For Home Insurance policies the following table describes the pricing factors we may take into account to determine your premium for Buildings Insurance or Contents Insurance.

Pricing Factors	Buildings	Contents
The location of your home
The amount your home or contents are insured for
The age of the insureds
Who occupies your home - for example, owner or renter
The basic excess amount you choose
The way you use your home - for example, residential or business use
The construction material of your home and roof
The year your home was built (see step 3 of How we calculate your premium)
The type of alarm fitted to your home

Discounts

The following discounts are available depending on the type of insurance you have chosen:

No Claim Bonus
Linked Policy Discount
Multi-Policy Discount
Years of Insurance Discount

We calculate the discounts that apply to your policy before we tell you what your premium will be. Please see the Discounts section of this guide for further details.

Policy options

If you have Buildings Insurance you may add the following policy options to your policy by paying any additional premium that applies:

Burn out of electric motors - fusion
Accidental Damage
Flood

If you have Contents Insurance you may add the following policy options to your policy by paying any additional premium that applies:

Burn out of electric motors - fusion
Accidental Damage
Flood
Specified Items
Specified Portable Valuables
Unspecified Portable Valuables

Cost of choosing to pay by the month

If you choose to pay your premium by monthly instalments you pay more than if you pay annually.

The extra premium you pay will be shown on your current Certificate of Insurance.

Government charges

Home Insurance policies are subject to stamp duty imposed by state and territory governments in addition to GST.

Government Charges	Home Insurance
GST	10%
Stamp Duty	11%

How we calculate your Home premium

Step 1
First, we will combine the pricing factors and the cost of any options you have chosen (except Flood and Burn out of electric motors - fusion).

Step 2
Once this amount is calculated we work out any Linked Policy Discount, Multi-Policy Discount or Years of Insurance Discount that you may be eligible for and apply those to the amount from Step 1.

Step 3
If your home is new, we work out any premium reduction that you may be eligible for and apply it to the buildings premium amount from Step 2.

Step 4
We then work out any No Claim Bonus you may be eligible for and apply this to the amount from Step 3.

Step 5
If you have both Buildings and Contents Insurance under the one policy, we add your buildings premium and contents premium together.

Step 6
Then, we add the cost of Flood and Burn out of electric motors - fusion if you have chosen these options and the cost of choosing to pay by the month.

Step 7
To the amount in Step 6, we add applicable government charges to work out the premium you need to pay.

If there is anything you don't understand about this SGIC Home Insurance Premium, Excess, Discounts & Benefits Guide, please call us on 133 233 or visit your nearest branch.