Protecting Your Assets
House And Contents Insurance. Have You Really Got It Covered?
My research has shown that with most policies (inc banks) the sum insured includes GST. “So what?,” you’re probably thinking. Well, suppose your schedule shows your house is insured for $500,000 – if that includes GST it means you’re really insured for only $435,000! That could leave you short of funds if there is a total disaster and the house has to be rebuilt – and isn’t that the main reason you insure your house anyway? My preferred policy pays the full sum insured with any GST on top, and the same thing applies to contents cover. Also, they don’t charge any extra for paying monthly - another advantage.
I’ve discovered that many policies fall short in other areas too so, in an effort to ensure that my clients are not caught short at claim time, I’ve developed a “Policy WOF” service. Under this service I analyse the features of a client’s existing policy and provide a short, written report comparing it with the policy I recommend - a sample is available by clicking here. The ‘XYZ’ policy is one that is widely advertised on TV and I believe my WOF clearly shows the superiority of my preferred policy.
Important Notes To Consider
The major difference between the two policies is that with XYZ, the main sums insured include GST, whereas with our preferred policy, they do not. This means that with XYZ you are really insured for 15% less than the sum shown on the policy schedules, which could leave you short of funds in the event of a total disaster. This is particularly important as regards your house.
With our preferred policy there is no extra charge of any kind for paying monthly – you simply divide the annual charge by 12.
There may be other minor differences not detailed above, and if any item is covered by both house and contents policies, you can only claim once.
It's important for tenants to have insurance as well. Although your landlord is responsible for insuring the house, you can be still held liable for any damage you cause. And be careful who you invite round because you’re responsible for your guests and their actions too. It’s always a good idea to take out insurance on your furniture and other personal possessions - but you should add at least $1 million of liability cover as well - just in case something unforeseen happens. Then, if you or one of your guests burns the place down you’re likely to be covered. Without it you may find the landlord’s insurance company coming after you for the full rebuilding cost!
We can also quote for insuring other assets such as cars, boats etc... and also travel insurance.