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Insurance

INSURANCE CONSIDERATIONS

Insurance whether it is for Home, Contents, Personal Valuables, Strata Property, Liability can be a confusing and expensive exercise if not managed professionally.

Adequate insurance when Loss of Property or Liability strikes is very important, with the various insurance companies and insurance options available, finding the right policy can be a little overwhelming and the assistance of a Licensed Insurance Broker is strongly recommended.

Here are some Insurance Policy Considerations -

Home Insurance - Ensure your building in insured for Full Replacement Value and the insured details are accurate i.e. Owner and Mortgagee names are correct. Your agent or insurance broker can assist you with determining a replacement value sum insured and correct insured names.

Quite often, you will be asked by your lender to provide a Certificate of Currency - simply just a certificate of current insurance, which will have your lender noted as an interested party. Thus, the lenders interest is protected and you have adequate insurance, this gives all peace of mind that the home will be reinstated, or re built to at least the same standard as was there originally.

The insured value (sum insured) should include demolition and site work costs, as well as replacement of outbuildings, swimming pools, pergolas, retaining walls and other improvements. This is an area often over looked and can cause a lot of heart break, should you lose your home.

So in closing, consider you total properties value with demolition costs, not just replacement cost of the building. To speak to one of our Insurance professionals click here.

Household Contents - Once again, various policies are available providing Replacement Conditions with either Full Accidental Cover or Defined Events Policies.

Consider the replacement cost of your personal valuables, being specific, as policies limit the sum insured on jewellery etc to a percentage of the sum insured or a limit per item. It is a good idea to find out what your insurer will pay per item, then make a list of your valuables that individually exceed this amount, you can then discuss this list with your Insurance Broker to decide what is worth having a specified value place on those items. You may require Australia wide cover or worldwide cover on specified items. In any case you need to make sure you have sufficient cover to replace everything from your furniture, clothing through to your most prized possessions. Most people no matter how humble have over $10,000 in clothes, socks, towels, sheets, toiletries and quilts. If you have a fire you may lose everything, so think carefully about your level of cover!

Insure for the worst case scenario, the premium price difference is normally not much more for complete peace of mind. To discuss your insurance requirements with a professional click here.

First Home Insurance Considerations -

  • Have Certificates been issued to Financial Institutions i.e. Mortgagee/ Finance Broker?
  • Leaving home unoccupied - will your house be unoccupied for a term, outside policy conditions?
  • Income protection - have you considered Personal Income Insurance to protect your income and thus be in a position to meet your mortgage commitments?
  • Adequate life and trauma cover - in the event of death or serious injury you may put in place adequate life insurance to pay out mortgage commitments, thus giving peace of mind

Other policies for consideration - Not limited to;

Accidental Damage Policies including -

  • Replacement cost as new coverage
  • World wide automatic cover for personal items
  • Unspecified jewellery cover up to $10,000
  • Legal liability for bodily injury or property damage anywhere in the world up to $20M
  • Credit card fraud coverage
  • Storm damage to walls gates and fences
  • Mechanical or electrical breakdown of electrical appliances

Defined Events Home Policy -

  • Replacement cost as new without contribution for age
  • Legal Liability Worldwide $20M
  • Fusion of electric motors no contributions up to ten years old
  • Storm damage to walls/gates & fences

Premiums will vary from Accidental Damage to Defined Events Policies and your Insurance Broker will explain the benefits of both policies to suit your circumstance.

Strata Property Insurance - The insurance of Strata Properties, whether owner occupied or investment properties is a specialist area and a number of insurers have appropriate policies. An insurance broker will be aware of the policy to suit your requirements -  Strata building insurance is generally handled by the strata secretary with consideration to replacement value of the strata building and appropriate property owners and common area liability insurance.

Other considerations are

  • Machinery breakdown i.e. air-conditioning plant etc
  • Workers compensations i.e. gardeners maintenance men etc
  • Voluntary workers cover
  • Office bearers legal liability
  • Fidelity guarantee

Investment Property Landlord Insurance - Once again, a licensed broker will be able to head you in the right direction, as there are various considerations as a Landlord -

  • Building Insurance is the appropriate policy in place including your necessary liability considerations.
  • Property Owners contents  
  • Malicious Damage, Theft by Tenants
  • Loss or rentable value
  • Loss of rent - default by tenant
  • Loss of rent - departure by tenants
  • Legal expenses

To find out more about any of the above or ask a question please click here to get in touch with an Insurance professional

 
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