{"id":"F2019L00902","name":"Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019","slug":"defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99537,"registerId":"commonwealth-F2019L00902-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under section 38A of the Defence Service Homes Act 1918.\n\n4 Revocation\n\n  The Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2016 (F2016L00553) is revoked.","sortOrder":0},{"sectionNumber":"5","sectionType":"section","heading":"Saving","content":"#### 5 Saving\n\nIf:\n\n    (a) immediately before the commencement of this instrument, a person had a right to a payment under the Statement of Conditions in force under the Defence Service Homes Act 1918; and\n\n    (b) on the commencement of this instrument the payment had not been made;\n\nthe right to the payment continues on and after the commencement of this instrument until the payment is made.\n\nNote: Subsection 38A(4) of the Defence Service Homes Act 1918 provides that the Minister must not vary the Statement of Conditions so as to remove the right of a person to receive a payment to which the person had become entitled before the variation.\n\n6 Schedule\n\nOn and after the commencement of this instrument, the Statement of Conditions set out in the Schedule applies for the purposes of Part VI of the Defence Service Homes Act 1918.\n\n  \n\nSchedule\n\nSTATEMENT OF CONDITIONS\n\nPART 1 LOSS OR DAMAGE TO YOUR HOME\n\nThe events we insure you for\n\nWe only insure you if the loss or damage to the home:\n\n    is caused by one or more of the 13 events we list below,\n    happens in the period of insurance, and\n    is not excluded either by the specific exclusions we list in this section under ‘What we do not insure you for’, any of the General Exclusions we list in Part 7, or any exclusions listed on your certificate.\n\n1 Fire\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by fire (including bushfire).\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage to the home that is caused by burning or heat, if that happens without flames.\n\n2 Explosion\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by explosion.\n\n3 Lightning or thunderbolt\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by lightning or thunderbolt.\n\n4 Earthquake\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by earthquake.\n\nYou must pay the first $200 of each claim we agree to pay for loss or damage caused in an earthquake event. An earthquake event begins with the first earthquake and ends 48 hours after that. If there is another earthquake outside this 48 hour period, it begins a new earthquake event. You must pay another $200 if we agree to pay your claim for loss or damage that happens in a new earthquake event.\n\n5 Flood or action of the sea\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by flood, or a tidal wave, or the action of the sea. By ‘action of the sea’ we mean the rise or fall of the sea over a short period of time.\n\n6 Storm, snow or hail\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by storm (including cyclone), snow or hail. By ‘storm’ we mean a violent wind that may occur with thunder or heavy rain.\n\nWhat we do not insure you for\n\n![](image.002.png)We do not insure you for loss or damage caused by wind, rain, snow or hail entering the home unless it enters because of structural damage to the home that is directly caused by the storm, snow or hail.\n\n7 Rain\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by rain. Rain includes that part of the rainfall that is not absorbed by the soil but runs off as surface water.\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage caused by rain seeping into or entering the home because of:\n\n    defects in the structure or design of the home\n    defects in building work done on the home\n    an opening made in the home so that it could be added to, renovated, repaired or modified\n    failing to properly maintain the home.\n\nWe do not insure you for loss or damage to the external paint work or other external coatings on the home.\n\n![](image.003.png)8 Act intended to cause loss or damage\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by any act that is intended to cause loss or damage.\n\nWhat we do not insure you for\n\nWe do not insure you if the act that is intended to cause the loss or damage is by someone who:\n\n    lives in the home, or\n    is at the home or site with your consent or the consent of the person who lives in the home.\n\n9 Theft or attempted theft\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by theft or attempted theft.\n\nWhat we do not insure you for\n\nWe do not insure you if the theft or attempted theft was by someone who:\n\n    lives in the home, or\n    is at the site or home with your consent or the consent of the person who lives in the home.\n\n10 Escape of liquid\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by the sudden bursting, leaking, discharging or overflowing of liquid from any:\n\n    shower base or shower walls\n    fixed tank or fixed pipe\n    gutters or drain\n    other equipment that is fixed to the home and used mainly to hold or carry liquid.\n\nIf we agree to pay your claim for loss or damage caused by this event, we will also pay the reasonable cost of locating the source of the escaped liquid.\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage that is caused by liquid splashing or gradually escaping because of something other than a sudden burst, leak, discharge or overflow.\n\nWe do not insure you for the costs of repairing or replacing:\n\n    the defective item, or a defective part of the item, that causes the loss or damage, or\n    any leaking shower base or shower walls.\n\n11 Riot or violent civil disorder\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by riot or violent civil disorder.\n\n12 Impact\n\nWhat we insure you for\n\nBy ‘impact’ we mean sudden and violent collision.\n\nWe insure you for loss or damage to the home caused by the impact of any:\n\n    ![](image.004.png)animal that is not kept at the home or site\n    vehicle, watercraft, aircraft, sonic boom from an aircraft\n    space debris, debris from any aircraft, rocket or satellite\n    television aerial or radio aerial or its mast.\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage to the home caused by:\n\n    any animal kept at the home or site\n    any animal or bird biting, chewing, pecking or scratching\n    insects or vermin.\n\nWe do not insure you for loss or damage to a television aerial or a radio aerial or its mast unless that loss or damage is caused by an event we insure in this policy.\n\n13 Falling tree or branch\n\nWhat we insure you for\n\nWe insure you for loss or damage to the home caused by a falling tree or branch.\n\nIf we agree to pay your claim, we also pay the reasonable costs of removing the fallen tree or branch to the nearest dumping ground.\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage to the home caused by lopping or felling a tree if that is done by you or with your consent.\n\n![](image.003.png)What we pay\n\nA. Repairing or rebuilding your home\n\nIf we agree to pay a claim for loss or damage to the home, we may choose to:\n\n    pay you a cash amount for what we think are the reasonable costs of repairing or rebuilding the home, or\n    pay the reasonable costs you actually incur in repairing the home if it is damaged (but if it costs less to rebuild the damaged part of the home than to repair it, we will pay the reasonable costs of rebuilding it instead), or\n    pay the reasonable costs you actually incur in rebuilding the home if it is destroyed.\n\nPlease note, if we agree with you that it would not be appropriate to rebuild the home, we will pay you the market value of the home before it was destroyed less the amount it costs us to pay off any mortgage on the home.\n\nWe will pay the reasonable costs of repairing or rebuilding the home on a ‘new for old’ basis to a condition substantially the same as but not better than when new.\n\nWhere possible, we will pay the reasonable costs of matching materials used in repairing or rebuilding with those originally used. But we do not promise to\n\nrepair or rebuild the home to exactly as it was before the loss or damage occurred.\n\nWe only pay the costs of repairing or rebuilding those parts of the home that are directly destroyed or damaged by an event.\n\nIf you have to rebuild the home, you may build it on another site – but if changing the site increases the costs of rebuilding the home, you must pay the amount of this increase.\n\nPlease note, we will only pay the reasonable costs of repairing or rebuilding the home if:\n\n    the home has been kept in good repair and condition. This means it must be structurally sound, secure, and well maintained. If it is not, we have to reassess the value of the home before we work out the costs we will pay you. We do this by decreasing the value of the home, taking into account its age and the extent it has deteriorated.\n    you start repairing or rebuilding the home within 6 months from when the loss or damage happens. If you do not, and the delay increases the costs of repair or rebuilding, you must pay the amount of that increase.\n\nPlease also note, we will only pay your costs in getting quotes or inspection reports if we agree to do so before you get them.\n\nB. Additional expenses we pay for\n\nAs part of your sum insured, we insure you for these additional expenses:\n\n    temporary accommodation\n    lost rent\n    landlord’s fixtures and fittings\n    extra costs related to building\n    legal costs for discharge of mortgage\n    matching décor; and\n    trees, shrubs and plants.\n\nPlease note, the most we will pay for each claim for all of these additional expenses is 20% of the sum insured.\n\nC. Temporary accommodation\n\nWe will pay you the reasonable costs of temporary accommodation (including temporary accommodation for your household pets) if:\n\n    ![](image.005.png)we agree to pay your claim for loss or damage to the home, and\n    the loss or damage makes the home unfit to live in.\n\nWe will only pay you the reasonable costs of temporary accommodation that you are actually responsible for paying.\n\nWe will pay these costs:\n\n    for the reasonable time it takes to repair or rebuild the home, or\n    for up to 12 months from the date of the loss or damage, whichever is less.\n\nD. Lost rent\n\nWe will pay you for lost rent if:\n\n    we agree to pay your claim for loss or damage to the home, and\n    the loss or damage makes the home unfit to live in, and\n    at the time of the loss or damage you are leasing out the home.\n\nWe will pay you lost rent:\n\n    for the reasonable time it takes to repair or rebuild the home, or\n    for up to 12 months from the date of the loss or damage, whichever is less.\n\n![](image.003.png)E. Landlord’s fixtures and fittings\n\nWe will pay you for loss or damage to landlord’s fixtures and fittings if:\n\n    the loss or damage is caused by one of the events we insure, and\n    you are not living in the home at the time of the loss or damage, but someone else is living there with your consent.\n\nBy ‘landlord’s fixtures and fittings’ we mean any of these items that are in the\n\nhome for the person living there to use:\n\n    items that are permanently fixed to the home\n    internal blinds and curtains\n    carpets.\n\nIn each period of insurance, the most we will pay for landlord’s fixtures and fittings is:\n\n    $10,000, or\n\n    10% of the sum insured, whichever is less.\n\nF. Extra costs related to building\n\nIf we agree to pay your claim for loss or damage to the home, we will also pay the reasonable costs of:\n\n    employing an architect, engineer or surveyor\n    demolishing\n    removing debris from the site\n    complying with the requirements of any Statutory Authority that are served on you after the loss or damage happens.\n\nWe will pay these costs only if we agree they are necessary to repair or rebuild the home. If you have to rebuild the home, you may build it on another site – but if changing the site increases your building costs, you must pay the amount of this increase.\n\nG. Legal costs for discharge of mortgage\n\nIf the home is destroyed and either:\n\n    you choose to rebuild it on another site, or\n    we agree to pay you the market value of the home, then we will also pay the legal costs to discharge any mortgage on the home.\n\nIn each period of insurance, the most we will pay for legal costs to discharge mortgages is $1,000.\n\nH. Matching decor\n\nWe will pay the reasonable costs of replacing or modifying an undamaged part of the home if:\n\n    we agree to repair or replace a part of the home, and\n    you reasonably need to replace or modify an undamaged part of the home to match the part that is repaired or replaced.\n\nThe most we will pay for each claim for matching decor is $500. Please note: you must actually incur the costs of replacing or modifying the undamaged part of the home before you qualify to claim for those costs.\n\nI. Trees, shrubs, plants\n\nWe will pay you the reasonable costs of replacing any tree, shrub or plant at the home or site if:\n\n    we agree to pay your claim for loss or damage to the home caused by one of these events:\n\n\\-fire\n\n\\-explosion\n\n\\-lightning or thunderbolt\n\n\\-earthquake\n\n\\-impact, and\n\n    the tree, shrub or plant is damaged or destroyed in the same event.\n\nThe most we will pay for each claim:\n\n    for any one tree, shrub or plant – is $200\n    for all trees, shrubs and plants – is $2,000.\n\nPlease note: you must actually incur the costs of replacing a tree, shrub or plant before you qualify to claim for those costs.\n\n![](image.003.png)Limits on what we pay\n\nThe most we will pay for any one claim under Part 1 of this policy (including any part of that claim that is for additional expenses), is the sum insured.\n\nThe most we will pay for any one claim for all of these additional expenses is 20% of the sum insured:\n\n    temporary accommodation\n    lost rent\n    landlord’s fixtures and fittings\n\nPlease note: the most we will pay for landlord’s fixtures and fittings is 10% of the sum insured or $10,000 – whichever is less.\n\n    extra costs related to building\n    legal costs for discharge of mortgage\n\nPlease note: the most we will pay for legal costs to discharge mortgages on the home is $1,000.\n\n    matching decor\n\nPlease note: the most we will pay for matching decor is $500.\n\n    trees, shrubs and plants.\n\nPlease note: the most we will pay is $200 for each tree, shrub or plant, up to a maximum of $2,000 for all trees, shrubs and plants.\n\n  \n\nPART 2 ACCIDENTAL LOSS OR DAMAGE\n\nIn addition to insuring you for loss or damage to the home that is caused by an event (see Part 1), we also insure you for other accidental loss or damage to the home. We automatically provide you with this insurance when you buy this policy. It is part of your sum insured.\n\nWhat we insure you for\n\nWe only insure you if the loss or damage to the home:\n\n    happens during the period of insurance, and\n    is accidentally and directly caused by a sudden and unexpected event (other than by an event we insure in Part 1), and\n    your claim is not excluded by the specific exclusions listed below in the ‘What we do not insure you for’ section, any of the General exclusions in Part 7, or any exclusions listed on your certificate.\n\nWhat we do not insure you for\n\nWe do not insure you for loss or damage:\n\n    to glass forming part of a glasshouse\n    to awnings or shade cloths\n    to swimming pool linings or covers\n    to electrical motors that form part of the home\n    caused by tree lopping or tree removal at the site\n    caused by any intentional act.\n\nWhat we pay\n\nIf we agree you have a claim, we may choose to either:\n\n    repair or rebuild the home, or\n    pay the reasonable cost of repairing or rebuilding the home.\n\nWhere it is not possible to repair or rebuild with material originally used, we will pay for the closest matching material available.\n\nIf we agree to pay your claim for accidental loss or damage, we will also pay the reasonable costs of replacing or modifying an undamaged part of the home. We will only do this if:\n\n    you reasonably need to replace or modify the undamaged part of the home to match the part that is repaired or rebuilt, and\n    ![](image.003.png)you actually incur the costs of replacing or modifying the undamaged part of the home.\n\nPlease note: we will only pay your costs in getting quotes or inspection reports if we agree to do so before you get them.\n\nLimits on what we pay\n\nThe most we will pay for each claim for accidental loss or damage is $5,000. The most we will pay for each claim for matching decor is $500.\n\nNo excess applies to a claim for accidental loss or damage to any of these items that are fixed to or form part of the home:\n\n    glass, mirrors, glass cooking tops\n    baths or wash basins or sinks\n    toilets or toilet cisterns.\n\nBut you must pay the first $100 of each claim we agree to pay for any other type of accidental loss or damage to the home.\n\n  \n\nPART 3 FUSION OF ELECTRICAL MOTORS\n\nThis policy insures domestic electrical motors that form part of the home (for example, a built-in air conditioner, or the fan motor of a built-in heater). In addition to insuring you for loss or damage to electrical motors that is caused by an event, we also insure you for loss or damage to electrical motors caused by fusion. We automatically provide you with this insurance when you buy this policy. It is included in your sum insured for Part 1: Home Building.\n\nWhat we insure you for\n\nWe insure you for loss or damage to any domestic electrical motor that forms part of the home.\n\nWe only insure you if the loss or damage to the domestic electrical motor:\n\n    is directly caused by an electrical current,\n    happens during the period of insurance, and\n    ![](image.006.png)is not excluded by the specific exclusions listed below in the ‘What we do not insure you for’ section, any of the General exclusions in Part 7, or any exclusions listed on your certificate.\n\nWhat we do not insure you for\n\nWe do not insure you for:\n\n    the cost of hiring a replacement motor\n    the cost of replacing worn or broken bearings or switches\n    lighting elements (for example light bulbs or fluorescent tubes) or heating elements, solenoids, fuses or protective devices (for example a fuse, or circuit breaker)\n    electrical contact points where sparking or electrical arcing occurs during their ordinary use, and\n    the cost of removing or replacing motors forming part of a submersible pump.\n\nWhat we pay\n\nIf we agree you have a claim, we may choose to pay the reasonable cost of either repairing or replacing the domestic electrical motor.\n\nPlease note: we will only pay your costs in getting quotes or inspection reports if we agree to do so before you get them.\n\nLimits on what we pay\n\nThe most we will pay for loss or damage to a domestic electrical motor is the reasonable cost of replacing it, as described in the ‘What we pay’ section.\n\n  \n\nPART 4 OWNER’S OR OCCUPIER’S LEGAL LIABILITY\n\n![](image.003.png)We automatically provide you with this insurance when you buy this policy.\n\nWhat we insure you for\n\nWe insure you for the costs of your or your family’s legal liability as owner or occupier of the home. By ‘legal liability’ we mean your or your family’s legal responsibility to pay compensation for causing:\n\n    bodily injury or death to someone other than you or your family, or\n    loss or damage to property owned or controlled by someone other than you or your family.\n\nWe only insure you if:\n\n    the accident happens at the home or site during the period of insurance, and\n    you or your family are legally liable as owners or occupiers of the home or site, and\n    your claim for the costs of legal liability is not excluded by the specific exclusions listed below in the ‘What we do not insure you for’ section, any of the General Exclusions in Part 7, or any exclusions listed on your certificate.\n\nWhat we do not insure you for\n\nWe do not insure you or your family for legal liability where the liability is or should have been covered by compulsory workers’ compensation insurance.\n\nWe do not insure you for legal liability that arises from:\n\n    bodily injury to, or the illness or death of:\n\n\\-you or your employee, or\n\n\\-your family or their employee.\n\n    you or your family having agreed that you are liable\n    acts or omissions by you or your family or by someone with your or your family’s consent, if:\n\n\\-the results of those acts or omissions were intended, or could reasonably be expected, or\n\n\\-the acts or omissions by you or your family were done with reckless disregard for their consequences\n\n    the transmission of any disease by you or your family\n    you or your family owning or occupying any land or building, other than the site or home\n    any registered or registrable vehicle you or your family own or control (other than a motorised wheelchair)\n    any watercraft or aircraft you or your family own (other than a remote model aircraft, or an unmotorised watercraft less than 3 metres long)\n    any business, profession or occupation carried on by you, your family or any person who normally lives with you in the home\n    lopping or felling of trees by you or with your consent\n    asbestos that is, or has been, in the home or on the site\n    any equipment containing liquid petroleum gas that is used on, or is in the home or on the site and that does not comply with relevant safety laws\n    building work being carried out on the home or site that costs $30,000 or more\n    vibrating, or removing or weakening the support of any land, building or property\n    a swimming pool at the home or site that:\n\n![](image.007.png)\\-is not fenced in to legal standards, or\n\n\\-has fencing that is not properly repaired or maintained.\n\nWhat we pay\n\nWe will pay:\n\n    the amount of compensation you or your family are legally responsible for paying, and\n    your or your family’s reasonable fees and expenses for legal services, but only if we agree in writing to you using those services before you use them, and\n    the legal fees and expenses of the person claiming against you or your\n    family, if a court orders you or your family to pay them.\n\nLimits on what we pay\n\nThe most we will pay for all claims that arise directly or indirectly from one accident is the sum insured for Part4: Owner’s or Occupier’s legal liability shown on your certificate.\n\nThere is no limit on the amount we may pay for the legal fees and expenses of:\n\n    you or your family, or\n    the person claiming against you or your family, if a court orders you or your family to pay them.\n\n![](image.003.png)\n\n  \n\nPART 5 STRATA TITLE HOMES\n\nWhat we insure you for\n\nIf the home is strata title, this Part of the policy provides you with limited protection against loss or damage to the home.\n\nWe will only pay for loss or damage to the home if:\n\n    we say we insure that loss or damage in Parts 1, 2 or 3 of this policy, and\n    this policy does not exclude that loss or damage, and\n    the Body Corporate has not, or has not sufficiently, insured the loss or damage, and\n    you try to recover the amount of your claim from any other insurer who may have insured the loss or damage, before you claim from us.\n\nWhat we do not pay\n\nWe do not pay any excess that applies to the Body Corporate’s insurance policy or to claims you may make using any other insurance policy.\n\nWhat we pay\n\nWe will pay the lower of:\n\n    the sum insured, or\n    the amount we say we will pay for that loss or damage in Part 1, 2 or 3 of this policy minus any amount you can recover from the Body Corporate’s insurer or any other insurer.\n\nLimits on what we pay\n\nThe most we will pay for a claim using this section is the amount of the sum insured.\n\n  \n\nPART 6 DEATH OF YOU OR YOUR FAMILY\n\nThis policy insures you for the death of you or your family that is a direct result of a physical injury caused by one of the ‘Events causing death’ listed below. We automatically provide you with this insurance when you buy this policy. It is additional to the sum insured which means that the sum insured is not affected by any death claim we agree to pay.\n\nWhat we insure you for\n\nWe insure you for the death of you or your family.\n\nWe only insure you if:\n\n    the death is the direct result of a physical injury caused by one of the ‘Events causing death’ listed below, and\n    that event happens at the home or site during the period of insurance, and\n    the death happens within 90 days of that event, and\n    ![](image.008.png)we are shown a death certificate given by a registered medical practitioner as proof of the cause of death, and\n    the claim is not excluded by the specific exclusions we list in this section under ‘What we do not insure you for’.\n\nEvents causing death\n\nWe insure you for the death of you or your family caused by:\n\n    fire\n    explosion\n    lightning or thunderbolt\n    earthquake\n    flood or tidal wave\n    riot or violent civil disorder\n    impact (that is, sudden and violent collision) with any:\n\n\\-vehicle, aircraft, tree or branch\n\n\\-space debris, debris from any aircraft, rocket, or satellite\n\n\\-television aerial or radio or its mast.\n\nWhat we do not insure you for\n\nWe do not insure you for:\n\n    suicide\n    death caused by any kind of illness or disease\n    death caused by any kind of war, or war like or terrorist activities.\n\nWhat we pay\n\nA. Death benefit\n\nIf we agree to a claim for death under this Part of the policy, we will pay you or your legal personal representative a death benefit.\n\nB. Funeral expenses\n\nIf we agree to pay a claim for death under this Part of the policy, we will also pay for funeral expenses.\n\nLimits on what we pay\n\nThe most we will pay for death in each period of insurance is $10,000 for each death, up to a maximum of $40,000 for all deaths.\n\nThe most we will pay for funeral expenses in each period of insurance is $2,500 for each funeral, up to a maximum of $10,000 for all funerals.\n\n  \n\nPART 7 GENERAL EXCLUSIONS\n\nWe do not insure you for loss or damage that is not directly caused by an event that we insure you for, unless we say that we do in this policy.\n\nWe do not insure you for loss or damage or legal liability that is intentionally caused by you or your family or a person acting with the consent of you or your family.\n\nWe do not insure you for loss or damage or legal liability caused by:\n\n    failing to keep the home or site in good repair and condition\n    the home or site settling or shrinking or expanding\n    hydrostatic pressure, or the earth moving (other than from earthquake), erosion\n    defects in structure, design, work done, or materials used on the home or at the site\n    wear and tear\n    ![](image.009.png)rust, corrosion, rot, mildew, rising damp, any gradual deterioration or process\n    atmospheric or climatic conditions (other than those we say we will insure in the events section), condensation, evaporation\n    any substance at the home or site that is dangerous to health or property (for example, explosives, or asbestos)\n    any process that involves you or someone with your consent applying heat to any property insured by this policy\n    the use, existence, or escape of any nuclear fuel, nuclear material or nuclear waste\n    any war, or war like activities\n    any act of terrorism which directly or indirectly causes any loss, damage, cost or expense of any nature, resulting from or in connection with:\n\n\\-any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss,\n\n\\-any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism.\n\n    any person or organisation legally destroying, or taking away your ownership or control of, any property insured by this policy.\n\n  \n\nPART 8 DEFINITIONS\n\n‘act of terrorism’ means:\n\n    a loss that results from the hostile detonation of any device, whether or not a weapon of war, employing atomic or nuclear fission and/or other like reaction or radioactive force or matter, and including but not limited to the use of any device, whether or not a weapon of war, which disperses or releases radioactive matter;\n    a loss that results from a building being uninhabitable due to the direct or indirect release of germs, disease or other contagion or contaminants following the Act of terrorism; or\n    a loss resulting from a Nuclear incident.\n\n‘certificate’ means your most recent Certificate of Insurance or Building Renewal Notice.\n\nWe give you a Certificate of Insurance when:\n\n    you first buy your policy,\n    we update information on the certificate, or\n    upon request when you renew your policy.\n\nWe give you a Building Renewal Notice at each renewal of the policy.\n\n‘employee’ means any person who has a contract of service with you or your family.\n\n‘event’ or ‘events’ means events we insure you for and that we list in Part 1 of this policy.\n\n‘excess’ means the amount you must pay towards a claim. We deduct the amount of your excess from a claim before we pay it.\n\n‘family’ means any of these people who normally live with you at the home:\n\n    spouse, de facto spouse, partner\n    parents, grandparents, parents-in-law\n    children, grandchildren, sons or daughters-in-law\n    brothers, sisters.\n\n‘flood’ means ‘the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following:\n\n    a lake (whether or not it has been altered or modified)\n    a river (whether or not it has been altered or modified)\n    a creek (whether or not it has been altered or modified)\n    another natural watercourse (whether or not it has been altered or modified)\n    a reservoir\n    a canal\n    a dam.\n\n‘home’ means:\n\n    ![](image.010.png)all residential buildings on the site (including any part of the building used for residential tenancy, or any part you use for surgery or office purposes, but excluding any part used for business, manufacturing or trade purposes), and\n    any of these items that are fixed to or form part of those residential buildings:\n\n\\-domestic appliances including their motors\n\n\\-glass, mirrors, baths, wash basins, sinks, glass cooking tops, toilets, toilet cisterns\n\n\\-floor coverings (but excluding carpets), and\n\n    any of these items that are fixed to the site:\n\n\\-in-ground, or above-ground, swimming pools and spas,\n\n\\-domestic improvements of a structural nature\n\n(for example garages, carports, garden sheds, underground services, walls, gates and fences), and\n\n    building materials up to a value of $1,000 that are being kept at the site to use on the home, and that are owned by you.\n\n‘market value’ means the value of the home and site immediately before the home was destroyed minus the value of the home and site immediately after that event.\n\n‘period of insurance’ means the period we insure you for in this policy. The dates next to ‘Period:’ on the certificate show how long the period of insurance is.\n\n‘premium’ means the amount you must pay for the insurance we provide in this policy, including any taxes and government charges.\n\n‘site’ means the land at the insured address shown on the certificate that:\n\n    the home is built on, and\n    surrounds the home, and\n    is used only for domestic purposes (either by you or someone living at the home with your consent), or for the purposes of your surgery or office.\n\n‘sum insured’ means for each Part of the policy the total amount you have insured your property for under that Part of the policy. The certificate shows the amount of the sum insured for each Part of the policy.\n\n‘vehicle’ means a motorised machine, and anything attached to it, that is designed to travel on wheels or on self-laid tracks.","sortOrder":1}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"This instrument replaces a prior variation (2016) and sets out the updated Statement of Conditions to apply under Part VI of the Defence Service Homes Act 1918. It does not expand the statutory scope of the Defence Service Homes Insurance Scheme beyond its core purpose (insuring Defence Service Homes under the Act). Instead, it refines contract terms, limits, exclusions and procedural rules (caps, excesses, definitions, and claims processes). The Saving clause preserves pre‑existing accrued payment rights, and the instrument otherwise adjusts policy details rather than materially broadening or repurposing the scheme’s coverage."},"complexity_factors":["Eight substantive policy Parts plus Authority/Revocation/Saving (multiple functional layers)","About 20–25 defined terms in Part 8 that condition many operative provisions (e.g. ‘sum insured’, ‘home’, ‘flood’, ‘period of insurance’)","Numerous cross‑references between Parts (e.g. Parts 1–3 refer to General Exclusions in Part 7 and definitions in Part 8)","Multiple monetary caps and percentages to track (sum insured cap, 20% additional expenses cap, $10,000 or 10% landlord fixtures, $1,000 legal mortgage costs, $500 matching decor, $200/$2,000 trees/plants, $5,000 accidental damage cap, $10,000 death benefit per person, etc.)","Several excess regimes and time windows (earthquake $200 per 48‑hour event; $100 excess for accidental damage; 6‑month rebuild commencement rule)","Nested exclusions and conditional qualifications (for example rain damage excluded if due to defects, and storm entry only if structural damage first occurs)","Strata interplay: requires recovery attempts from Body Corporate insurer before this policy pays (Part 5)","Operational pre‑approval requirements (insurer must agree in writing before paying for quotes, inspection reports, legal services)","Overlap of like cover items across Parts (e.g. matching decor appears under several Parts) requiring careful claim routing","Legal/administrative saving and revocation mechanics (revokes 2016 variation and saves pre‑existing entitlements via s 5 referencing s 38A(4) of the Act)"],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- Replaces the previous 2016 variation and fixes the formal insurance terms (the “Statement of Conditions”) that apply to the Defence Service Homes Insurance Scheme under the Defence Service Homes Act 1918 (see Authority and Revocation, ss 3–4).  The new Statement of Conditions is set out in the Schedule and applies for the purposes of Part VI of the Act (s 6).\n- Preserves any existing rights to payments that arose under the prior Statement of Conditions and were unpaid at commencement (Saving, s 5).  That is, if you had already become entitled to a payment before this instrument started, that right survives until paid.\n\n**Who this affects**\n\n- Owners (and occupiers) of homes insured under the Defence Service Homes Insurance Scheme. The document is the policy wording (the insurer’s “we” language) that determines what insureds can claim for under Part VI of the Act.\n- People living at or connected with an insured home (family members, tenants, and, in strata cases, Body Corporate arrangements) insofar as liability, temporary accommodation, landlord’s fixtures, or death benefits are concerned.\n- The insurer or scheme administrator who will assess and pay claims under these contract terms.\n\n**Key cover, limits and obligations (short summary of the main mechanics)**\n\n- Covered events: The policy insures loss or damage to the home caused only by the listed events (Part 1): fire (including bushfire), explosion, lightning, earthquake, flood / action of the sea, storm/snow/hail, rain (subject to defects/maintenance exclusions), deliberate acts by outsiders, theft by outsiders, escape of liquid, riot, impact, and falling trees/branches. Accidental loss or damage from other sudden, unexpected events is also covered up to specified limits (Part 2). (See Parts 1–3.)\n- Excesses and event definitions: Examples include a $200 excess per earthquake event (earthquake events are grouped into 48‑hour windows) (Part 1, Earthquake) and a $100 excess for most accidental loss claims (Part 2). Some items (fixed glass, basins, toilets) are exempt from the accidental claim excess (Part 2).\n- Repairs and rebuilds: The insurer may pay cash or actual reasonable costs to repair or rebuild on a ‘‘new for old’’ basis but subject to matching/materials limitations, the insured having kept the home in good repair, and a requirement to start rebuilding/repairs within six months or bear additional cost increases (Part 1 A).\n- Additional expenses (temporary accommodation, lost rent, landlord’s fixtures and fittings, extra building costs, legal costs to discharge mortgage, matching decor, and trees/shrubs/plants) are included as part of the sum insured but capped: additional expenses combined are capped at 20% of the sum insured, landlord’s fixtures limited to $10,000 or 10% of the sum insured (whichever is less), legal mortgage discharge costs capped at $1,000, matching decor $500, trees/shrubs per item $200 (up to $2,000 total). The overall limit for any one claim is the sum insured (Part 1 B–I and Limits).\n- Accidental damage: Separate cover for accidental damage is provided automatically and sits within the sum insured. Per‑claim cap for accidental loss is $5,000; matching decor $500 (Part 2).\n- Electrical motors: Specific cover for domestic electrical motors (fusion) is provided with exclusions for wear parts, hiring costs, and certain replacement costs (Part 3).\n- Legal liability: Owner’s/occupier’s legal liability cover is provided for injuries or property damage to third parties arising at the home/site, subject to many exclusions (workers’ compensation matters, family members, business activities, certain building work, pool fencing rules, asbestos, LPG equipment non‑compliance). The limit is the Part 4 sum insured for liability; legal fees may be paid if agreed (Part 4).\n- Strata title homes: Limited top‑up cover is available only where the Body Corporate has not insured (or not adequately insured) and only after trying to recover from the Body Corporate’s insurer or any other insurer first (Part 5).\n- Death benefit: A limited death and funeral benefit is payable if death is the direct result of a physical injury caused by certain insured events at the home, subject to excluded causes; caps are $10,000 per death (to $40,000 total per period) and $2,500 per funeral (to $10,000 total) (Part 6).\n- General exclusions: The policy excludes losses from lack of maintenance, wear and tear, structural defects, gradual deterioration, earth movement other than earthquake, terrorism (as defined), nuclear incidents, war, and other specified causes (Part 7 and Definitions in Part 8).\n\n**Why it matters (purpose claim and operational test)**\n\n- Stated purpose: the instrument sets the contractual conditions under which homes insured under the Defence Service Homes Scheme are covered. That determines who gets paid, for what events, and by how much.\n\n- Who pays and who decides: insured persons pay premiums (defined in the policy as the amount payable). The insurer (or scheme administrator acting under the Act) decides claims under these terms — for example, whether to cash‑settle or pay repair costs, whether additional costs are ‘‘necessary’’, and whether to agree in writing to legal costs. The Minister (using authority in s 38A of the Act) promulgated these conditions but the day‑to‑day claim decisions are made under the policy wording.\n\n- Behavioural and incentive effects (concrete mechanisms):\n  - Maintenance incentive: Exclusions for failure to keep the home in good repair (Parts 1 and 7) shift liability for gradual deterioration and defects to the insured; that creates a direct incentive for owners to maintain property to preserve full recoverable value (Part 1 A; Part 7).\n  - Claim size and frequency signals: Relatively small caps (accidental damage $5,000, matching decor $500, various per‑item limits) and excesses (earthquake $200 per event, $100 for other accidental loss) mean insureds may self‑insure for smaller losses or choose targeted private policies for gaps.\n  - Administrative steps required: For strata claims the insured must pursue the Body Corporate’s insurer first (Part 5). For certain items (e.g. quotes, inspection reports, legal fees) the insurer must agree in advance to pay those costs; failure to get prior agreement imposes cost on the insured and raises compliance/transaction costs.\n  - Rebuild timing: The insured must start repairs/rebuilding within six months or bear extra costs caused by delay (Part 1 A). That creates a time pressure on claimants and may shift short‑term financing needs.\n\n- Costs and trade‑offs: The policy narrows insurer liability by exclusions (defects, wear and tear, many liability circumstances) and by setting per‑claim and per‑item caps. That reduces the insurer’s expected outlays compared with open‑ended cover, but increases the insured’s residual financial risk for excluded or capped losses. The insurer retains discretion over valuation methods (cash settlement versus actual cost) and whether particular costs are ‘‘reasonable’’ or ‘‘necessary’’ (Parts 1, 2, 3, 4).\n\n- Implementation and compliance risk: The claim process requires documentation (e.g. a death certificate for death claims, prior agreement for legal costs or inspection costs), adherence to time limits and evidentiary steps, and interpretation of nested exclusions (e.g. whether rain entry is due to structural defect or storm damage). Those requirements create scope for administrative disputes and increased compliance burden on insureds.\n\n**Concrete examples of provisions that materially affect outcomes**\n\n- Earthquake event grouping and $200 excess per event (Part 1, Earthquake).  Multiple quakes within 48 hours are treated as one event; separate events attract separate excesses.\n- Accidental damage cap $5,000 and $100 excess (Part 2).\n- Additional expenses combined capped at 20% of sum insured; landlord’s fixtures limited to $10,000 or 10% (Part 1 B and Limits).\n- Body Corporate recovery requirement before claiming on this policy for strata homes (Part 5).\n- Exclusion of liability for building work costing $30,000 or more (Part 4, exclusions).\n\n**Bottom line**\n\nThis instrument fixes the detailed contract terms for insurance under the Defence Service Homes Scheme: what events are insured, the exclusions, various monetary limits and excesses, and procedural requirements for claiming. It preserves pre‑existing entitlements to payments that had already accrued before the change. The terms shift routine maintenance and many slow‑developing risks back onto insured owners while providing defined cover for sudden insured events and certain ancillary costs, subject to caps and insurer discretion."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This instrument maintains the established scope of the Defence Service Homes Insurance Scheme. It is a routine legislative update that revokes and replaces the 2016 Statement of Conditions with substantively similar coverage, updated for 2019. The structure (Parts 1-8) and fundamental purpose — providing building insurance, liability coverage, and death benefits to veterans — remain consistent with the scheme's long-standing intent under the 1918 Act."},"complexity_factors":["Multiple nested exclusion clauses with cross-references between Parts (e.g., Part 1 exclusions reference Part 7 General Exclusions)","Conditional payment structures with multiple thresholds and caps (e.g., 20% of sum insured for additional expenses, but 10% or $10,000 for landlord's fixtures, whichever is less)","Time-limited conditions (e.g., 6-month deadline to start repairs, 12-month limit on temporary accommodation, 90-day window for death claims)","Defined terms section with 13 specialised definitions including technical distinctions (e.g., 'flood' vs 'action of the sea', 'site' vs 'home')","Dual-trigger coverage requirements (e.g., strata title claims require exhaustion of other insurance first)","Variable excess structures ($200 for earthquake, $100 for accidental damage, $0 for specific glass/ceramic items)","Multiple 'whichever is less' comparative calculations throughout benefit limits"],"plain_english_summary":"This instrument replaces the 2016 Defence Service Homes Insurance terms with updated 2019 terms for the government-backed home insurance scheme for current and former Australian Defence Force members, their families and beneficiaries, while preserving any pre-existing entitlements.\n\nIt defines comprehensive “new-for-old” home cover (buildings, accidental damage, liability, strata shortfalls, motor fusion and death benefits), sets excesses and exclusions, and clarifies the statutory safety net for service families."}},"importantCases":[],"_links":{"self":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019","history":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019/history","analysis":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019/analysis","conflicts":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019/conflicts","importantCases":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019/important-cases","documents":"/api/acts/defence-service-homes-insurance-scheme-statement-of-conditions-variation-2019/documents"}}