Purchasing a home or investment property is a major event in anyone’s life. The very last thing most people consider is arranging the insurance to protect their new, and generally very costly, asset.
Here are some tips to keep in mind when you are arranging insurance for your property whether it’s your home or a rental property:
Work out what you want to be able to claim for before purchasing an insurance policy.
- If you mainly want cover for major events (e.g. flood, storm damage, fire or cyclone) then take a Listed/Specified Events type of cover and opt for a higher Excess for the Building cover (e.g. $1,000). This will help save you money and you won’t be paying for cover you don’t need.
- If you do want to cover Accidental Damage to your property or contents, be aware that you will pay more for your policy. If you only wish to cover certain items for Accidental Damage, then have them listed as Specified Contents or Specified Valuables on your Listed/Specified Events policy.
- Don’t forget to include cover for your contents. Think about what it would cost to replace your furniture, white goods, electrical items, clothing and shoes and ensure you check policy sub-limits for different item categories
- If the property is a rental property, you still need to include contents in order to cover items like carpets, curtains/blinds, dishwashers, dryers and often air conditioning systems – especially if the property is in a strata complex.
Be aware that any claim you make will impact your premium at renewal time, no matter what the value of the claim was. Claims also need to be declared to future insurers for up to 5 years when obtaining quotations or moving your cover elsewhere.
Read the policy documents. That includes the Product Disclosure Statement/s and Policy Wording/s. Make sure you are familiar with what is or isn’t covered, as well as any special policy conditions that apply. Often there will be limits or additional covers that apply in certain events, particularly for contents items like jewellery and sporting goods.
Be aware of when your policies are coming up for renewal and make sure you review your Insurers renewal terms carefully to check for changes. It is often a good idea to seek alternative quotations, which your Broker should automatically provide you with.
Ask questions! If you aren’t sure, ask your Broker who can answer your queries regarding coverage or explain the differences between the quotations provided. Get in touch with the Principal Broker at Preston Finance & Insurance on 4052 0750.