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Disengagement With Insurance Will Come At A Big Cost

We adore our homes and cherish our belongings but most us don’t even know what we are insured for according a recent survey.

We are obsessed with owning a home and improving it, but are dangerously lazy when it comes to protecting it and the chattels within.

New research revealed two in three homeowners not only don’t know the value of their possessions, but don’t know what they are insured for. The survey of 1000 adults with home and contents cover found 69 per cent are in the dark as to the true value of their contents and 42 per cent don’t keep records of their possessions for insurance purposes.

Of those who did keep records in the form of receipts, valuations, certificates of authenticity and photographs, just 10 per cent kept those documents offsite for safety.

Meanwhile, some households were in danger of noncompliance, with 72 per cent not making alterations to their home to meet the terms and conditions of their policy; and 63 per cent admitting they hadn’t read their policy details in full. An alarming 53 per cent had merely skimmed over the details.

Over half had skimmed the cover details so weren’t sure what they were covered for and it’s shocking because our home is our most valuable asset. Details in an insurance policy’s product disclosure statement (PDS) were essential to be across. They are long, boring and difficult to read, but given it’s protecting something so important, we would say ‘please just make the effort’. It is important that people understand what is and isn’t covered by their insurance policy so they are not caught out when they go to make a claim.

Some don’t realise that when their belongings are old, they are covered for the cost of replacing them at today’s prices. Replacing a whole wardrobe in one go will cost you thousands. Photograph things in your home using your phone, in case you must prove ownership.

Here are some tips:

1. Leaving homes unattended for extended periods.

If a home is left unattended for more than 60 days, it may not be covered.

2. Leaving spare keys out.

Spare keys should be kept with a family member or trusted neighbour …. or consider alternatives like pin-access key safes.

3. Leaving windows open for ‘air’.

Even if thousands of dollars are spent on the best security, an open window will mean easy access for a burglar.

4. Not following through on what has been disclosed to the insurer.

If policy documents show that an alarm is installed, homeowners must turn on the alarm when they leave the house.

5. Forgetting to lock garages and sheds.

Garages are a common entry point for burglars and its important valuables are not stored inside … and that they are locked when the home is unattended.

6. Not noting changes to their insurance.

Product disclosure statements can change year on year and could expose homeowners to risks if they don’t read and understand changes and ensure their home and contents comply.

Looking for a quote to compare your home & contents insurance to the best in market or other resources: click here


This information is current as at 09/10/17. This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.

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