Friday, 11 April 2008

Insurance Cover - Why You Need To Go For Gold?

Maximise Your Insurance Policy Knowledge
As Aussie Home Inventories has found, fossicking for home insurance information nuggets, is important when you are involved in the business of preparation for loss through disaster, emergency or theft.

After all it is their clients whom are looking to go for gold when it comes to correcting under-insurance! These nuggets or 'home policy truths' can be complex, but not impossible to understand. The information is there for all to read, and act upon in getting prepared! Reading and understanding the 'PDS', [Product Disclosure Statement] is a must, often a requirement by the insurer! You may also choose to seek independent expert advice.

Do not be fooled into a false sense of security, as Big Brother will not always take care of you!

Insurance information may talk about statistics, peace of mind, minimum procedures and even dog names and postcodes! Surely better information would be to:
  • Ask for content amendments at renewal time.
  • Increase property owners awareness of the breakdown of content cover.
  • Supply a blank home inventory list for the details of purchases!
  • Ask the owner to produce written confirmation of renovations.
  • Make sure the property owner is aware of property inventory services, if unable to supply the information themselves.
Would a system of proving what you have, before it is insured produce a far more accurate system?

For a more detailed list of questions to ask your insurance supplier visit this post.

For the property owner time goes by and information is not recorded, often becoming more inaccurate, if not finally lost! Proving what you had after a loss, is just to hard and impossible! With this lack of action in getting property owners aware, one may ask whether there is money to be made, by keeping the unsuspecting property owners, in the dark and under-insured?

Learn How To Prepare For Loss?

With spade in hand, Aussie Home Inventories has managed to dig out these insurance information nuggets from a leading insurance supplier, in this case the website of GIO:

“Home and contents sums insured are increased at renewal. This means when your home insurance policy is due for renewal, your sum insured will automatically increase to allow for any increase in building costs (under a Home policy) or for any additional items you might buy during the period of insurance or for increases in the replacement cost of Contents (under a Contents policy). This could be due to increased local council regulations, inflation in building costs and allowance for any new contents you may have purchased over the past 12 months. Industry home building cost guides are used as a reference. Around 68% of people surveyed gamble their most precious possessions every year because they are under insured*. To ensure you are not under insured in the event of a total loss, it is important that you regularly review your total sum insured and make sure it is adequate, giving you one less thing to worry about.”

OK! Whilst we agree with the general message, does anyone out there ever get more information, than the lump sum required at renewal time? What does “automatically increase”, exactly mean and by how much and how often in relation to contents purchased? We have not seen to many breakdowns of the figures in policies we have seen!

With 68% of property owners gambling with their hard earned possessions, who is really caring about who loses here or gains?

These figures have been very similar for years!

“There are limits on how much we will pay for some items. When household burglaries occur, jewellery is one of the most common items stolen. You can choose to insure jewellery or other items worth more than the policy limits by asking us to list them on your Certificate of Insurance for their full replacement value. An extra premium may apply for any increase in cover. (Please read your Product Disclosure Statement for full details).”

OK! Most people as we have found do not know or do this! Hence the 68% under-insurance and the items specified incorrectly in the policy.

Do most people just add up their contents and make an assumption they are covered? WHOOPS! Someone is going to be in for a suprise at claim time!

Few property owners have done their homework, and not being prepared and ready for a claim, will be asked by their friendly insurance consultants to:

Record the details of the incident, including your name, address and contact phone numbers. A description of the incident, [fire, theft, burglary, storm]. What has been affected by the incident, [broken window, roof damaged by fallen tree, stolen TV].To help speed up your claim, for electrical items please have details about the make and model handy. If required, ask you to provide further documentation for example, proof of ownership, receipts etc. Provide you with details of one of our carefully selected recommended repairers or replacement providers, (if one is available in your area), so you don't need to run around getting quotes. Provide you with details about any excess you may have to pay. Let you know if an assessor needs to visit your property and when the assessor will be in contact with you. Once the claim has been approved and finalised, payment is made to the repairers and suppliers. Note: Should your claim, or part of it, not be covered, an Insurance Consultant will tell you why.

Yes, we are sure they will! And that is going to make everyone very happy indeed, at this time of loss! When they thought they were covered! But guess what, we have all the information stored in our fire safe or off-site secure location, YES?

OK, well now we are aware of what has to be done, so lets get started! It's not rocket science, it's just very confusing for most people doing it the hard way, when there in an easier way available!

With an accurate record of your assets, allowing you to maintain an accurate insurance policy, your Insurance Consultant will not be telling you why there is a problem, but when to expect your quickly processed claim and cheque!

As we mentioned earlier in this article, and what we believe would make more sense is:

Would a system of proving what you have before it is insured, produce a far more accurate system?

Supplying benefits to property owners and insurance suppliers!

So if you are concerned about loss, and looking to Go For Gold with preparation and correcting your insurance cover, you need our help and advice on recording your property.

Call Aussie Home Inventories TODAY! To be prepared TOMORROW!

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