Storm season is upon us, and one of the best ways to prepare, is to insure your home and assets. But lengthy documents and confusing terminology can make it difficult when choosing the right policy. So, what are the most important things to consider when purchasing or updating your home and contents insurance?
Paul Burstow, from CIA Insurance Group (Corporate Insurance Advisors), says the first thing to do is to make sure you are insuring your home for the right sum.
“Some people are only insured for, say $200,000, but they have to pay $400,000 to rebuild,” Mr Burstow says.
When purchasing your insurance policy, guessing the total cost of rebuilding your home after a terrible event, such as a storm or cyclone, could leave you hundreds of thousands of dollars out of pocket during a time when you need it most.
However, brokers, like CIA Insurance Group, can give you an accurate estimate of the price of your home and contents, while working to keep your premium the same.
Secondly, you need to differentiate between the policy you are purchasing. There are two types of Home and Contents insurance policies: Accidental Loss or Damage, and Defined Events. The big difference between these policies is that the Defined Events policy only covers your assets against some events, such as fire, flood, and earthquake.
“Insurance companies want you to buy the Defined Events type because it doesn’t cover as much…but about 50% of claims are under the Accidental Loss or Damage type,” Mr Burstow says.
The Accidental Loss or Damage policy also protects your contents against accidental events, such as a smashed television, lost jewellery while away on holiday, or electrical failure of your fridge.
But, perhaps the most important thing to consider when choosing your insurance, Mr Burstow says, is that over 90% of houses in Australia are underinsured, which means getting help to choose the right policy is essential to protecting your home and assets.
“Everyone has a misconception of insurance,” Mr Burstow says. “You wouldn’t represent yourself in court, or do your own tax, it’s the same with insurance.
“[Insurance brokers] represent the client, not the insurance company.”
Brokers have access to insurers you don’t know exist and have read and understood all policies, so they can give you expert advice and answer all of your questions. Not only this, but when you have a claim they also handle that for you on your behalf.
“We compare over 200 insurance companies in our system, and analyse all the risks for our clients, like flood mapping from councils…and make a report,” Mr Burstow says.
Flood mapping helps clients understand the risk this poses to your home and contents.
The report also includes a buildings replacement estimate to ensure your building is insured correctly, a policy comparison if you have cover currently in place and a quote which is the best cover for the price on the market.
If you would like to get a free report from the experts at CIA Insurance Group, click here.
SPONSORED ARTICLE
