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Thursday, 5 February 2009

Under-Insurance Australia - The Truth Is Out There

Make Sure You Do Not Have To Suffer Under-Insurance
Under-Insurance Is Known By Some People As The Termite Of The Insurance Industry!

Nobody Wants To Discover Under-Insurance. Yet For An Alarming Number Of Homes It Has Already Taken Hold & Remains Hidden!

Are You Under-Insured?

Most people answer NO to this question. Whilst at the same time there is a HIGH number of under-insured properties here in Australia. If everyone thinks they are NOT under-insured, then this is a false sense of reality for some people.

So if you are thinking, how could I be under-insured? Think again! And if you believe the Insurance Supplier is taking care of you 100% of the time. You need to face reality! And reality is:

Most People Whom Are Under-Insured, Discover It At Claim Time!

Up to that point they were like you! Believing they were OK. The reason why? They assumed their insurance cover was adequate and never questioned it!

The average householder receives the insurance renewal once a year. Often they take note of any increase and assume the Insurance Supplier has everything in order. This is not always true! Why? Well you are the only person whom knows, what you are insuring! The insurer has everything in order, based only on information you supplied them some time ago.

Ask Yourself This, How Up To Date Is That Information?

If the information is incorrect, then the Insurance Supplier is taking a guess based on mathematics. And  you are gambling with your property against loss! So you could be facing the discovery of under-insurance in the future, unless you periodically inform your Insurance Supplier of:
  • New purchases throughout the year.
  • Additional renovations and decorations.
  • Specified items that are over the limit of cover per individual item, for each category.
  • The correct valuation of your home.

Property Valuation

I Have Not Updated My Insurance Supplier, Nor Did They Ask For Details!

If you have not informed the Insurance Supplier of the above, then you will have incorrect cover and could be under-insured. It is up to you 100% of the time, to keep the Insurance Supplier updated. There is NO WAY they can know, what is in your home and what your true value of cover is unless you do this!

What is stated in the insurance policy's Product Disclosure Statement [PDS] is something similar to.

  • Suggested - “A detailed Home Contents Inventory could make your insurance claim much quicker and easier, thus getting you back on track sooner. Plus, you can store other important information, images and documents, like a copy of your passport or wills, certificates and qualifications.
  • Required - You must give us the evidence of value and ownership of lost, stolen or damaged goods or property, especially for articles such as: jewellery, artwork and collections - you should keep your purchase record and valuation certificates which shows the value of the item as well as highlighting proof of ownership. - Source GIO website.
If you suffer a loss you will need information on the property lost, to satisfy the claim procedure. Without it you will have trouble proving the claim. 

At Aussie Home Inventories we've had recently an increase in calls to our offices. Calls about under-insurance, which has only become known at claim time.  The callers have often been told by the Insurance Supplier, that in fact they are under-insured and have been for some time. This under-insurance has been reported on property, contents or both. This increase most likely is due to an increase in claims, due to the recent natural disasters. Losses occur through disaster and theft all the time though. 

Most callers seem to have been under a false sense of protection. This being that the insurance supplier knew the correct value to insure them for. A simple reality check here is, how could they if they have not been kept up to date!This is ALWAYS the job of the property owner, YOU! 

Simply put, any under-insurance is going to be your loss, covered by you the property owner. If you are in doubt about whether you may be under-insured, there is an simple procedure to take, which can supply the answer. The solution is as easy as 1 2 3 :
  • 1- Read Your Product Disclosure Statement [PDS] & Confirm The Documents You Need To Substantiate Any Claim.
  • 2- Call Your Insurance Supplier To Confirm What The PDS States 100%! Ask About Any Additional Requirements. Ask About Details On Their Discounts For Policies Including A Home Inventory.
  • 3- Take Inventory Of Your Hard Earned Possessions ASAP - If You Are Short Of Time Or Lack The Equipment To Take Inventory - Contact Us.
Once you have a Home Inventory you will be able to work out what cover you require. Under-Insurance can be eliminated from thereon by:
  • Keeping the Home Inventory up to date.
  • Keeping your Insurance Supplier up to date.
  • Knowing at all times the correct value of your home and its contents.
  • Making sure you are covered for additional costs, ie debris removal, building cost increases.
Remember the only person that has your property interests at heart, 100% of the time in this game of insurance is YOU! Make sure you are not gambling with your family's main investment. It pays to be in TOTAL CONTROL, when it comes to insurance. Your insurance should be your assurance 100% of the time.

Properties in Australia can suffer from termites. Managing the problem with an efficient solution, reducing losses. The same can be said for under-insurance. It has less chance of occuring if the correct steps are taken!

For further help and advice on taking inventory of your property and contents, allowing you to find &  eliminate under-insurance, call our offices.

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