Why not all Home and Contents Insurance policies are equal
Wednesday, 22 November 2017 14:49
For most people, shopping around for the best deal on Home and Contents Insurance comes down to a comparison on price. But is the annual premium the best measure of a policy’s value? Different insurers have different policies about what’s included and what’s excluded in a Home and Contents Insurance policy. Here are three classic examples to look out for:
1) Flood cover
Living in a country like Australia with extremes in weather, you might assume all insurers automatically cover you for floods. But that’s not actually the case.
Some insurers don’t include flood cover in their base cover, but may allow you to add it to your cover for an additional premium. If you don’t pay the additional premium, you may not be covered at all if your home is damaged by floods.
2) Electrical motor burnout
Like flood cover, some insurers include electrical motor burnout in their base cover, but other insurers don’t. If you don’t tick that box, you may not be covered for the cost of replacing expensive appliances.
Does your insurer offer new for old replacement?
3) New for old replacement
When it comes to replacing lost or damaged contents, a big variable among Home and Contents Insurance policies is how much money you’ll be given to replace your items.
If your insurer offers new for old replacement, you’ll be paid enough to replace your old lounge with a similar new version – even if your lounge was 10 years old. But other insurers may only cover you for the market value of your old lounge, which may be considerably lower than the replacement cost.
Comparing apples with apples
Next time you’re taking out or renewing your Home and Contents Insurance, it’s worth looking at your quote or policy in detail to see what is and isn’t covered. Often cheaper policies have fewer inclusions and more extra-cost options, so you need to make sure you’re not comparing on price alone.
Home and Contents Insurance arranged by IMB automatically includes cover for floods and electrical motor burnout, as well as new for old replacement (regardless of age). If you’d like a quote visit www.imb.com.au/contactus
DISCLAIMER: Home and Contents Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance (Vero). Insurance policies have certain limitations, exclusions and conditions. For a full description of all cover offered, please read the relevant Product Disclosure Statement and policy wordings. A PDS is available from your local IMB branch. You should consider the PDS before making a decision about this product. IMB receives commission for insurance arranged. All cover is subject to acceptance by Vero.