When it comes to insurance policies, do you know the difference between 'specified items', and 'non-specified items'?
Importantly, do you know when you need to specify items on the insurance certificate?
Importantly, do you know when you need to specify items on the insurance certificate?
Specified contents & personal effects are described and listed on the certificate, with a sum insured nominated by the owner, as a replacement value. This sum insured for replacement, needs to be kept up to date by the property owner. It is not normally adjusted annually, by the insurance supplier.
Non-specific contents or personal items are not described on the insurance certificate. The total sum insured for these items will often be increased annually, automatically by the insurance supplier. It is the property owner's responsibility, to check the sum placed against the total of non-specific items.
To be safe, and not run the risk of being under-insured on your contents, a good idea is to make sure you are aware of the replacement value, of all contents / personal effects throughout the year.
When looking into contents / personal effects insurance, make sure you are aware of the 'limits', the insurance supplier will pay for non-specified content types. For example your policy may state:
- CD's, DVD's, Digital Media - "The most we will pay for any ONE insured event" - "Up to $2500 in total, unless noted as specified contents on your insurance certificate".
In a case where there is $2500 plus of digital media, some media will have to be listed as specified items. In all cases it is better to specify, when not sure. Often specified items have a high replacement cost. Another reason for adding specified items, is the simple fact you may have a lot of items of similar type, that add up to the limit set by the insurance supplier.
To have a large amount of contents insured as non-specified items, means you run the risk of meeting the limit, for non-specified item types, when paid for any one insured event!
There is some confusion with property owners regarding specified and non-specified items. Some of the confusion could be reduced, if the insurance suppliers were to clarify at the time of insurance renewal, the limits that are set on each of the content types. Most policies do not have more than ten different non-specified content types.
To get started on making sure you are aware of your contents cover, and it's limits, call Aussie Home Inventories. They will professionally record your property and contents allowing you to get started on keeping on top of your insurance cover.
Remember, insurance suppliers often state in their PDS:
"You Are Responsible For Determining The Sum Insured."
Call Aussie Home Inventories TODAY, to get prepared for tomorrow & stay in control!
