Home and contents insurance contracts can be bewildering. However, it is critical that you select an insurance policy that protects you against the main threats to your particular property. The RMB Property Law Division explains:
Home and Contents Insurance is a choice almost every homeowner in the country must make at some stage. The lengthy Product Disclosure Statements and questions put forward by insurers can be confusing and repetitive when comparing multiple insurance companies.
However, thoroughly reading through those documents before selecting your insurer may save you a lot of money and a lot of stress when you need it. Every insurer will have unique terms and conditions which may include crucial definitions for when you need to make a damage claim.
When choosing home insurance, you should carefully read the PDS so that you understand what you are and ARE NOT covered for.
Perhaps one of the most important matters to consider when purchasing home insurance is what events your house might be at most risk against - for example strong winds, storms, flood, fire etc. Then you can determine what insurance will cover you best.
A common dispute with insurers is whether damage is caused by a “flood event” or a “storm”. It is important to read the insurance PDS to understand how the insurer defines those events.
Commonly, a flood will be defined in terms such as “water covering normally dry land that has escaped or been released from the confines of a river, lake, dam etc”. However, many insurers will also include “rainwater run-off” in their definition of flood rather than storm which may mean you must choose an “optional extra” to be covered.
If you are in an area where flooding isn’t a high risk but you are prone to having heavy rainfall and rainwater run-off through your property, you may wish to look for an insurer who covers rainwater run-off in their “storm” definition or in a flood event definition that you are covered for.
Similarly, you must be sure to provide accurate details of your property. Discrepancies between your property and your insurance details or defects in your property may cause all or part of your insurance claim to be refused.
If you have a dispute with your insurer or need advice on your insurance, please contact our specialist lawyerss to assist you in your claim.
If you have any questions or are concerned about your situation, your first step should be to contact our office to arrange a free consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.