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Home Insurance

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Posted by: Cafestudy Admin

14th Feb 2020 11:15am

With all the recent natural disasters around Australia, will you review your current home insurance coverage? Are you concerned insurance premiums will increase? Are you aware of what you are covered for (ie fire, flood)?
For those that don’t have home insurance, are you now considering it?

Comments 73

Carolyn P
  • 28th Feb 2020 02:06pm

Home insurance has become a very personal issue for my family. We lost our Adelaide Hills home to the recent bushfires. Fortunately we did have both building and contents insurance but the claims process was reasonably complex and time consuming. Because we had never made an insurance claim before, we were very much novices. After notifying our insurance company, the first thing that happened was that they appointed a separate and arms-length claim assessor and building assessor. So we have had fairly limited contact with the insurance company itself. As part of the process, we had to supply original plans of the home, boundary fences etc, plus a complete-as-possible list of all our contents. Having lost everything, this was a fairly difficult task. We had to use our local council to source records and then sit down and consider, room-by-room, what was in our family home of nearly 20 years.

While we are still working through our insurance journey, I think I would suggest the following aspects to anyone with (or considering getting) home and contents insurance:

1. Understand the key aspects of your policy, what is covered what is not. Our policy covered an agreed value for our house and a little extra for any clean-up. But, for example, you cannot insure any value of your garden beyond a small set amount. Similarly, land value is not insurable.

2. Despite the rising annual premiums, we "allowed" our agreed value to increase by the amount suggested by our insurer each year. We are very glad we did this because our original amount insured nearly 20 years ago would have been woefully inadequate.

3. Keep all your important records at another location. We lost everything, and replacing key documents (including our insurance policy itself) has been a long and drawn-out process.

Perhaps the hardest thing to do is remain calm and patient. We have gone through such a stressful experience and it has been difficult at times to do this. We often remind ourselves that many other Australian families are going through the same situation and many will be even worse off than us.

I am very worried about the likelihood that insurance premiums will increase significantly. For us, it might be too outside our budget to rebuild in our current location. We also worry that nobody will buy our land because of the fire damage to the surrounding area and their own concerns about the cost of insurance. It's a bit of a lose-lose situation for everyone. Sadly, many families will see increased insurance premiums even though they themselves and their region was not affected by the recent bushfires (or floods). I don't think that there's any real solution to this.

I would advise any home owner to consider building and contents insurance as being mandatory. But just as important, always keep your family and pets safe; they cannot be replaced, regardless of insurance.

Kay Dee
  • 24th Feb 2020 09:29pm

Insurance is necessary, yet I find it awkward to read/understand the small print and also spend time to shop around to obtain a quote (detail all indoor/outdoor items, specify individual items, jewellery etc). Some companies want you to specify individual items and others say it's based on your overall total value of contents - on this basis it's confusing to compare apples with apples, also it's only when you need to make a claim to know how good a company is regardless of years of loyalty and paying premiums.

KAREN TRELOAR
  • 24th Feb 2020 06:04pm

Home insurance is unfortunately a necessary evil you need it to cover you incase! You ever have trouble with theft or natural disasters, the cost well that you may never need it but pay premiums and then extra when you do ever make a claim is exorbit, especially on a pension. Problem is there doesn't really seem like there is a better deal when chasing these up I truly hate the idea of paying something that one may never use the other side is if you dont gosh more than likely if your a procrastinator you'll get caught.

Angieg
  • 24th Feb 2020 12:28am

As I am renting, I insure contents only and feel that I am adequately covered. Regarding being covered for fire and flood, I think it is vital people read the fine print of their policies to be absolutely certain they are paying for exactly they need - apparently many are under insured. Also, will an "Act Of God" be fully covered?

pjohnw
  • 23rd Feb 2020 03:43pm

I see insurance as an necessity, I review my coverage and provider every year, as the saying goes "you can never have too much insurance", i know exactly what i'm covered for and for how much. My one concern is that premiums this year will skyrocket because of all the natural disasters around the country. I have to accept that my premiums will go up because of the millions of dollars in claims the insurance industry is facing, even though i do not live in a possible bushfire or a flood risk area.
Perhaps the insurance companies could look at people in low risk areas and treat them fairly, though i think this is nothing more than wishful thinking, in other words, hell would freeze over first. My hope is in finding an insurance company that only insures low risk clients/areas, with lower risk should come lower premiums ?, right ???.

Ruskie30748487
  • 23rd Feb 2020 12:19pm

I always have thought Insurance was a pain and unnecessary, mostly, as hardly every claim in years of paying, and thinking of how much I would've had if not for insurance premiums, which go up every year. But, for those that have had a disaster and needed to claim, I bet they were really glad they had cover. I know what I'm covered for and hope I never have to claim. Flood, near impossible where I am. Fire, possibly, living rural, bushy area. Also storm damage is a real possibility, just about anywhere in Australia.

gyro
  • 22nd Feb 2020 02:47pm

Insurance companies are capitalist when making money and socialist when the are not, if the have a major loss event they expect everyone to help cover the loss through increased premiums ,they then use this extra income and excesses to claim from their own underwriters , prepare to feel the pain.,if I keep going the way I am my excess will exceed the value of my house before long.

sweetypieelizabeth
  • 22nd Feb 2020 11:22am

Mmmmm....I just try to ensure that I Read as much as possible of the "Small Print" in a Policy....And yes it is soooooo boring to Read, then I just have a Chat with Others Whom have had Disasters "happen " around/near Them to see if I have not thought over everything before I cough-up My Hard-earned Dough and Signed the Document....Yes I generally believe Policies go up in Price and if They don't it is because the sneaky Insurance Company has Changed something...!!!
Weather Changes/Climate Change is real and happening and You have to think of Where You want to Live and think about the Risks involved !!!

Ellie 30656027
  • 22nd Feb 2020 10:55am

No I’m covered with natural disasters. Yes it’s a concern to increase premiums. Yes I am aware of what im covered for.

KennethS
  • 22nd Feb 2020 10:39am

If you under insure, your Insurance Company will deem you to be carrying a pro-rata portion of the risk yourself.-
For example if your total value of your property is worth $100,000, and you are insured for only $60,000, whether there is a partial or total loss you will be deemed to be carrying 40% of the risk yourself, unless the item lost is a specified item with a specified value.
The message is simple don't under insure, do an honest valuation of your property, and insure for either current value or replacement value depending on your policy.

Yes it can be expensive, but there are ways of reducing the cost, namely by increasing the excess, far better to carry a $500 or $1000 excess and get a full payout of the loss less the excess, than get a payout of 60% of the value of the loss..

Never under insure if there is a credible risk - speak to a broker or Insurance specialist if you have any doubts.
The reason for insuring is to get an honest claim fairly met, not just to get the lowest premium.
Every time there is some disaster or other, there are significant numbers of victims who find that there insurance falls well short of expectations.

Michael
  • 22nd Feb 2020 10:32am

I am about to investigate renewing Home & Contents Insurance soon. I was struck by lightning outside my home on Fri Feb 14 and lost my main boards in the computer, the modem and telephone. More than likely also my monitor. The TV also won't turn on now. I hope to claim against the electricity distributor. Telstra gave me a new Modem. My next door neighbour checked his service on my advice and he lost his phone and Modem and yesterday NBN came out and replaced the Modem and got him going again.

EileenW1
  • 22nd Feb 2020 08:02am

Of course following on from the catastrophic bushfires and now floods throughout much of Australia premiums will have to rise as insurance companies are facing pay-outs in the billions. Already there are complaints and tragic stories of victims not receiving anywhere near what they hoped due to innumerable loopholes which assessors can always seem to find. Our home and contents are insured but nowhere near what the true replacement value would be, simply because being pensioners, we cannot afford to pay premiums any higher than we already do. Never in 50+ years have we ever made a claim for house or contents but this is not considered when premiums are due. We had recent bushfires so close by we could see flames and smoke and have had floods under our previous house but there is no way we can afford to increase what we already struggle to pay.

arrem
  • 22nd Feb 2020 07:32am

I don't have insurance, I am on the pension and do not have enough money for insurance.

monkeygirl
  • 22nd Feb 2020 02:27am

Insurance is a friend with whom I play ball – to and fro until someone drops the ball. I know that if I drop the ball and need assistance I am covered, if the insurance company drops the ball by upping my premiums or rejects a claim, I will move on and play ball with another friend. It’s as simple as that for me!

Goulah
  • 21st Feb 2020 11:32pm

Interestingly enough I rang my insurance company today about my 2020/2021 policy renewal. I have been with the same company for the whole of the time I have been in this home (and the previous homes owned for many years). The consultant I spoke to asked a few questions then went into the coverage I have and what I could change if I wished to lower the price of the policy due to the cost. She went through the two kinds of policy pertinent to me ie "in home coverage" and "out of home coverage" accidental damage and/or loss. I referred to bush fires but as I live in a metropolitan area less than 10 kilometres from the city centre there is not a specific coverage for "bush" fires but am covered for any fires. She went on to say that I was also covered for flood, storm, act of god but not for terrorism which is (sadly) a standard for insurance policies nowadays.

Each year there is an automatic increase in the policy to cover the cost of living as my policy is for replacement value. Even with the increase in CPI and "usual cost increases" my policy due amount is actually less this coming year than for the current year. I was very surprised at this and it was advised that the (for want of a better explanation by me) standard price for my local area had decreased for the twelve months. I would gather that refers to the crime rate and other pertinent details. I also get a hefty (approximately $100) deduction in the cost of my policy due to the fact that I am over 50.

Household insurance is a pain in the behind but like health insurance or car insurance, it is necessary for peace of mind. It risk management.

PGS
  • 21st Feb 2020 08:35pm

Will premiums go up? Of course they will. Will the CEO get a higher bonus for doing nothing... of course.

I'm covered for practical things. This isn't a flood prone area & we are high enough that it would need to be a near biblical flood to be a bother. Cyclones... not here. Fire... fairly unlikely.

All insurance is a necessary evil.

1234
  • 21st Feb 2020 08:17pm

I live in a low fire/flood risk area but despite this I am sure premiums will increase as Insurers have had massive claims and have to cover their bottom line. No option but to pay as I would never be without house insurance. I used to work in insurance so yes I read the boring bits and know exactly what I am covered for.

KennethS
  • 22nd Feb 2020 10:47am
I live in a low fire/flood risk area but despite this I am sure premiums will increase as Insurers have had massive claims and have to cover their bottom line. No option but to pay as I would...

You are right on the nail about premiums increasing, insurance companies need to recover losses, otherwise they will go broke.
Insurance Companies spread their exposure by reinsuring Internationally, but there isn't a bottomless pit of cash just waiting for disasters to happen.

Insurance is a shared risk operation where the many share all their common risks to protect the few who suffer loss, and strange though it may seem, the Insurance companies are in business to make money, not pro bono.

Goulah
  • 21st Feb 2020 11:36pm
I live in a low fire/flood risk area but despite this I am sure premiums will increase as Insurers have had massive claims and have to cover their bottom line. No option but to pay as I would...

"Fine print" can be a real problem for most people. A lot of the time it is incomprehensible and lengthy.

meggs
  • 21st Feb 2020 07:29pm

I am concerned my premiums will increase but they do that anyway regardless of High volume claims. I did check a few years ago if I would be covered in the event of bush fire as one came pretty close black Saturday.
What I would like insurance companies to do is add accommodation. They will pay for accommodation
in the event of natural disasters (fire and flood etc) when you cant return back to your home or even offer a hired caravan to live in on your property while your home is being rebuild or repaired. The same as car insurance do with hire car when your car is undrivable.

meggs
  • 21st Feb 2020 07:36pm
I am concerned my premiums will increase but they do that anyway regardless of High volume claims. I did check a few years ago if I would be covered in the event of bush fire as one came pretty...

I think it would save lives as well as people would be less likely to stay and fight if they had somewhere to go.

aggu
  • 21st Feb 2020 07:12pm

Recent natural disasters around Australia undoubtedly great shock to each and every one and mainly effect to insurance company since they are under going the risk and financial burden to their customers with immediate effect. So naturally , Any one can expect the financial divide and increase the premium to customers to sustain the situation . If you ask me we have no option other than helping them what ever possible.

Goulah
  • 21st Feb 2020 11:38pm
Recent natural disasters around Australia undoubtedly great shock to each and every one and mainly effect to insurance company since they are under going the risk and financial burden to their...

An enlightened view that I feel may not be acceptable to many.

musicmum
  • 21st Feb 2020 06:43pm

As a renter I do not have home insurance, I have thought about contents insurance but feel my items are not really worth paying such high premiums. I have heard that you can just insure certain items so that it lowers your premiums but I figure I am quite safe where I live and do not feel I am threatened by fire, flood or theft. I think it is important to have it if you are a home owner and I check my mum's home insurance every time it is up for renewal to see if I can get a better deal, but often it is pretty much the same so she sticks with the one she is with. Reading and understanding your policy is one of the most important things to do, so many people sadly have been caught out and found they were not covered because of certain clauses. I would hope that insurance companies start to use easier to understand terminology so that many home owners can understand what they are NOT covered for to avoid undue stress if something does happen.

Goulah
  • 21st Feb 2020 11:39pm
As a renter I do not have home insurance, I have thought about contents insurance but feel my items are not really worth paying such high premiums. I have heard that you can just insure certain...

It does appear that it is at times easier to first check what is not covered than what is covered.

Jesse31972040
  • 21st Feb 2020 06:33pm

I believe we are all concerned with the possibility of higher premiums.

vickbenla
  • 21st Feb 2020 11:44am

I. Was hit with a double whammy, first damage from fires, then my car was damaged in massive hailstorm.
I will loose my no claim bonus I think for both contents & car insurance

beej
  • 20th Feb 2020 12:39pm

We live in a semi-rural area and I spend a lot of time on the phone working out the finer details of our home insurance. We believe we will be ok in the event of a fire as we maintain round our house block to a very high standard. However, i also believe that if something were to happen the insurance will find a way not to pay. We have recently had termites destroy part of our kitchen and a kangaroo killed our above ground pool, both of these were "not Covered" due to the fact it was animal damage. these are all risks of living rural and they are natural disasters in our home.

Goulah
  • 21st Feb 2020 11:40pm
We live in a semi-rural area and I spend a lot of time on the phone working out the finer details of our home insurance. We believe we will be ok in the event of a fire as we maintain round our...

I may be wrong but I believe that all policies clearly state that there is no coverage for "pests".

shaz
  • 19th Feb 2020 05:58pm

We pay insurance with our car registration, why can't the government do something similar where house insurance is concerned. I realize many people do drive without registration and many people do not have a car. The Goverment brought in Emergency Services Levi so why can't someone come up with a resolution for house and contents insurance. Why does the Government give more to those that did not have insurance. Let's get our priorities right. I go without other things to keep my insurance on house and car. To me they are priorities. I was taught that by my parents and taught my daughter the same.

Goulah
  • 21st Feb 2020 11:41pm
We pay insurance with our car registration, why can't the government do something similar where house insurance is concerned. I realize many people do drive without registration and many people do...

Pardon the brevity but... "ditto". It was drummed into me by my mum that insurance is just what it says and that you need to insurance your home, your health and if you have it, your car.

ab
  • 19th Feb 2020 10:02am

With all the recent natural disasters around Australia, will you review your current home insurance coverage? The short answer, no.
I don’t review anything unless the level to which I’m being had becomes offensive. It’s almost a given, that in life that you will be ‘had’, you can try to avoid it, good luck with that. But you’re better off accepting that you will be and decide on when enough is enough, and you will take action. The latest round of natural disasters would only prompt a review if I lived in an area of high risk ie flood, fire, earthquake etc. These are all areas where the insurance industry has very interesting definitions of what constitute an act of God. The truth is insurance companies aren’t in this game because there’s no money in it. I’d put them in the same bucket as casinos, the odds are always in favour of the house. Lol
Are you concerned insurance premiums will increase? No. However, if I was made to pay, through increased premiums, for the high-risk areas then I’d start comparing premiums between providers.
Are you aware of what you are covered for (ie fire, flood)? My knowledge is limited, I won’t lie. To the best of my knowledge, I’m covered for accidental damage from these sources. Like many I buy insurance with only a cursory glance at the cover and then hope I’m covered for whatever befalls me in the future.

ali
  • 19th Feb 2020 09:17am

Insurance premiums will go up we were broken into about 4 years ago (while we were home) by some young teens when we claimed on our home and contents policy we did notice a price rise in premium

ivory
  • 19th Feb 2020 09:01am

Insurances never want to payout and make it very difficult to claim. I remember when our house burnt down during the '(4 fires and it took Dad to say he would go public before he got paid out anything!

Gooner
  • 19th Feb 2020 08:30am

I do have landlord insurance and despite I haven't claimed anything for the last 4 years, my premium raised really put me into serious financial stress. I really can't find anything to justify their skyrocketing price rose. I understand that not many insurance companies like to insure my investment property and I think this is one of the main reasons why my insurance company "plays' their own game. I wish there are insurance companies to compete and this may bring down the cost of my premium.
On the other hand, all insurance companies will use the excuse of the rising cost for the victims' compensation, they will immediately raise their premium as soon as they can, this would make it even harder for homeowners to insure their own homes and other properties. I think they should increase the premiums on those areas which are zoned as natural disasters prone, but not on other areas. This would make it fair for everyone.

Ellie 30656027
  • 19th Feb 2020 12:26am

No I’m already covered by natural disasters. Never thought about increases. Now I’ve something to think about.

Goulah
  • 21st Feb 2020 11:44pm
No I’m already covered by natural disasters. Never thought about increases. Now I’ve something to think about.

Mine actually went down this year so do not stress.

Tabbi
  • 18th Feb 2020 11:15pm

yes concerned it will increase premiums as there has been alot of fires and floods lately and increasing claims will probably increase insurance policies to keep up with all the claims. Yes am aware what am covered for.

bearman
  • 18th Feb 2020 09:36pm

I have always had home insurance because it is my biggest asset and I could not afford to replace it if it was destroyed. I am covered for just about everything. My big gripe is that now there has been a selection of drought/ fire/ rain and floods insurance companies will surely put up premiums to cover the payouts on these new claims. The whole idea of insurance is to cover the policy holder so he can make a claim and not to jack up the prices on everyone's policy to cover this claim.
Even with insurance the then prime minister, John Howard, let insurance companies put on a levy so everyone would have to contribute to cover the Queensland floods.( note this helped stop the big insurance companies and the state government from going broke to pay these policies) Insurance is a rort but unfortunately a necessary one!

clem_lun
  • 18th Feb 2020 09:27pm

I always review my home insurance. However, not much I can do with premiums going up across the board. I am aware of what I am covered.

ybot
  • 18th Feb 2020 09:20pm

Many moons ago, while still living at my mother's place the glass shower screen shattered while I was home. The noise was incredible and the mess to clean up was just never ending. Tiny pieces everywhere, took many gos with the dustpan and brush and vacuum to get it all. Broke a few tiles in the bathroom and scraped part of the vanity.

Long story short, my mum filed a claim and a new bathroom was installed, new tiles, new glass panel that shattered, better than ever, except the tiler ballsed up the tiles under the door to the shower and it was misaligned. An excess of about $1500 and a new bathroom was installed due to the cracked tiles on the floor.

Another time after a mad storm in Sydney, mum filed a claim for the fence that was destroyed as a result of the wind. Insurance rejected it to the rust and state of the panels that had fallen. In fairness it was well beyond repair and the patches that had been done to it prior were on the way out. In the end, my mum and the neighbours went halves in a fully new and much sturdier fence without the insurances help.

They will pay out when it suits them, insurance is mostly a rort however I will say our pet insurance has been great with Wyatt. We'd be out of pocket over $12K otherwise for fairly major surgery and treatment in Wyatts first year of life. He's a tough little bugger

meg
  • 18th Feb 2020 09:16pm

I think that we are sufficiently covered & the current premium is reasonable. I do think that premiums will rise as a result of the fires & floods. Insurance companies are businesses & their shareholders expect a dividend. It is difficult to justify an overall increase as a large percentage of customers will not have made a claim. I think that insurance companies have some sort of agreement as investigations revealed that all companies have a very similar limit on the minimum & maximum that you can insure your house for.

K13
  • 18th Feb 2020 08:59pm

I regularly review my home insurance as my home is my biggest asset and without my home, I don't know where our family would be. I review my insurance approx 1 month before its due for renewal.

The bush fires and floods have had no effect on how I consider my policy as we live near a nature reserve and also near the beach so we make sure we are covered for everything. If I did not have bush fire cover previously, I would definitely be considering it now.

The premiums will definitely rise. Insurance companies don't like to lose money and these disaster are going to cost them a fortune. Unfortunately, all of us are going to pay for it with higher rates.

If people do not have home insurance, get it now! If you can't afford it, cut back on foxtel or downgrade your phone plan or even one night a week eat 2 minute noodles for dinner instead of a steak. All of those things add up and your home is precious and worth protecting. Insurance is expensive but a house is much more expensive. Insurance is a gamble but it is well worth the risk for peace of mind.

I had a conversation about this with my neighbour a few weeks ago. She told me it is unlikely we will get a fire or a flood so she doesn't worry about insurance. I asked her where her family would live if the house burnt down and how long would she able to afford to rent and that was a wake up call for her. She didn't want to see her children homeless to save a few dollars so she signed up for home insurance the next day.

I would never be without home insurance. I would rather forego a few luxuries during the year to pay for the premiums.

Off topic, but...
My condolences to all who have been affected by the fires or the floods. My heart truly does go out to you.

K13
  • 22nd Feb 2020 10:12am
I regularly review my home insurance as my home is my biggest asset and without my home, I don't know where our family would be. I review my insurance approx 1 month before its due for...

Thanks Goulah. Your home is probably the biggest financial asset you will ever have. It's easier to find $100 a month than it is to find $1million all at once. It's well worth protecting.
Cheers :)

Goulah
  • 21st Feb 2020 11:48pm
I regularly review my home insurance as my home is my biggest asset and without my home, I don't know where our family would be. I review my insurance approx 1 month before its due for...

I commend your vigilance is speaking with your neighbour and pointing out the consequences of not having home insurance. It is indeed an enormous asset and needs taking care of.

2020
  • 18th Feb 2020 08:53pm

Im covered adequately covered, insurance premiums will rise for everything not just House Insurance but ALL types of Insurance. Yes i know of what im covered for flood ,fire etc.

marcia1945
  • 18th Feb 2020 07:20pm

We had to move out of our home because the local council wanted to build a sporting complex so we were bought out and we bought a unit not too far away from where we were. But what we didn't know at the time was the only insurance company that insure Strata titles is NRMA and I find that amazing that there is no other company that will insure us. Don't get me wrong I love the NRMA but they are not real cheap. At our old home we had a gum tree from next door fall on our house and we were insured with Real Insurance and they were great but the next year our premium went up $1000. Anyway it's something you can't go without.

Captured
  • 18th Feb 2020 06:49pm

I live in my in-laws house so am not in charge of any house related bills.

I do have full comprehensive as well as the regular CTP Greenslip Insurance on my car.
I am fairly sure of what i am covered for.

Amu
  • 18th Feb 2020 06:39pm

yes, that's true, this year & last year i.e. 2020 &2019 are real fire disasters for NSW and Queensland, particularly NSW. it has been severely damaged, lots of properties, houses, human lives, animals, are dead due to horrible fire. As a result, I think, Insurance co. will increase the premium, my property is covered fully with fire, flood, so, i am ready to pay extra premium, I have also home contents policy, I never ever claim so far. I think, for those, who didn't do home insurance yet, please, do so immediately. You never now, when fire break out or flood might be serious due to heavy rainfalls. As a matter of fact, it's a national disaster. around Australia.

hispania
  • 18th Feb 2020 05:56pm

While I live in an inner city area which is not likely to be affected by a natural disaster of the kind Australia has experienced recently there is the possibility a catastrophic earthquake could occur (Christchurch, NZ was not supposed to be in an earthquake prone area so the unexpected can happen) or something else totally unexpected could happen. Regardless of remote possibilities ,recent events have made me look at my policies to check whether I have realistically estimated cleanup and rebuilding of the house and also the replacement value of the goods and chattels I would want to replace. I do think insurance premiums will rise and that is something I will have to accept because unlike so many caught in the recent fires I would never risk being uninsured. Even if my insurance level doesn't replace everything to the way I had it before I couldn't cope without some reassurance that I could get some way back to normal financially. I still need to re-read the policy to check on what disasters I am covered for.
NZ has a national insurance scheme which must be funded through government revenue which ultimately means citizens' taxes. I think it is a limited capped scheme and people take out other household insurance but it does mean that everyone is eligible for some compensation in the case of an earthquake etc. I would like to see us have a similar government scheme so that everyone has some insurance. It would give some reassurance.

Goulah
  • 21st Feb 2020 11:50pm
While I live in an inner city area which is not likely to be affected by a natural disaster of the kind Australia has experienced recently there is the possibility a catastrophic earthquake could...

Insurance is truly for the unexpected event.

flo
  • 18th Feb 2020 04:31pm

very concerned that premiums will increase, so many disasters recently, how can the insurance companies cover all of these claims without increasing premiums

suzukisue
  • 18th Feb 2020 02:21pm

I will only review my home insurance if there is a significant increase in my premiums next year. Although in a bush fire area, and the recent fires came very close to our town, we weren't affected directly.
I currently have my car and house insurances with RAA and they are very competitive, offering multi-policy discounts. My home insurance only recently renewed and although the premium has risen as expected, it is not a huge rise and so I'm happy to stay with RAA.

rcuttell
  • 18th Feb 2020 11:13am

Always ensure adequately; always read the fine print. Then you won't be disappointed.

pebbles
  • 18th Feb 2020 10:58am

Insurance premiums always go up but I expect. The will increase quite a lot for most of us as the companies will want to claw back their losses. So all of us will have to take a hit to the hip pocket. As insurance companies took a massive hit to their bottom line. If you live in an area that is. Known for disasters your premiums. Usually are very high. We have friends that live in cyclone region who have premiums. Of around 900 a month. That is insane. Some insurers won't renew with you. After events I would never not have insurance because the home is the largest asset we own and if anything was to happen. I would never be able to afford to replaced it.

squeekums
  • 18th Feb 2020 10:54am

We don't have it
We rent and even still, too expensive
Rates and numbers so confusing

bj
  • 18th Feb 2020 10:26am

Only once in 30ys have I had to make a claim. Minor break-in with door damage and cash + jewelery + camera stolen. We arrived home and the thieves left in a hurry. The worse was the knowledge that some-one had touched my personal items. We now live in a semi rural area where not much crime with low chance of fires and no chance of flooding. Even so our policy will rise this year.

shaper
  • 18th Feb 2020 10:00am

We live in a retirement village so they pay the insurance of the actual building but we insure all the contents, and yes its very expensive especially when you are retired. We do know exactly what we are insured for as I always ask before I re insure each year. But I would never be without it its just not worth the risk. Which I think all the insurance company's know.

Yqsymnx
  • 18th Feb 2020 08:13am

Absolutely. The insurance companies need to ensure their investments are secure and therefore will need to acquire funds.
The easiest for them would be to increase insurance premiums.
I am aware of what my policies cover and I actually take the risk for some items which I leave uninsured. These are where I evaluate the situation and consider that the risk is so low that it would be more than unlikely I would need to have it covered.
Yes I understand accidents happen, but we'll cross that bridge when we come to it. But in the interim, my cash flow is stronger for not paying insurance costs.

@capfantastic: Rich richer and poor poorer, while not necessarily true, in the event of an event, the rich would more likely be more adequately covered by insurance and therefore rebound quicker and easier, while the poor would lose out and seek the generosity of the community to rebuild.

Brad
  • 19th Feb 2020 01:45pm
Absolutely. The insurance companies need to ensure their investments are secure and therefore will need to acquire funds.
The easiest for them would be to increase insurance premiums.
I am...

Yes, in the scenario you describe, the poor become poorer. The rich don't get richer... they merely preserve what they have.

Ideally (as with banks) the ideal relationship is a _partnership_. Those insured have a duty to: a.) persuade governments to reduce the risk to the environment, property and life; b.) to ensure that contractors do not rip-off insurers; and c.) seek lower quotes (with competent local tradespeople) and offer our insurer this lower-cost option.

We've saved our insurers many _thousands_ of dollars by exercising b.) and c.) above. Ultimately, everyone Australia-wide, WINS if we view the insurer(s) as partners.

andrea
  • 17th Feb 2020 11:33pm

I review my insurance each year or two anyway so will continue to do so. This last renewal my premium went down....I was delighted and I didnt even have to ask. So this year I will expect it to stay the same or even go down again...why not? I live on a hill near the coast...relatively low fire risk, low flood risk. If I lived in the middle of the forrest surrounded by timber then I would expect to pay higher premiums just like if I built there I would need to build to a certain fire proof standard. Insurance companies are in the business of insurance to make money just like any other business. Most times they win but ocassionally they lose. That is the risk that is taken. We should not all be penalised because they have 'lost' this time.

Goulah
  • 21st Feb 2020 11:53pm
I review my insurance each year or two anyway so will continue to do so. This last renewal my premium went down....I was delighted and I didnt even have to ask. So this year I will expect it to...

I too had a policy cost which decreased this year. A most pleasant surprise.

JDB
  • 17th Feb 2020 11:15pm

I am renting but I do have contents insurrance, but I must say the cost to have this insurrance rises every year will have to look into it a bit more if it rises to high. We also have a high crime rate where I live.

KennethS
  • 22nd Feb 2020 10:50am
I am renting but I do have contents insurrance, but I must say the cost to have this insurrance rises every year will have to look into it a bit more if it rises to high. We also have a high crime...


You can reduce the cost of your insurance cover by increasing the excess, better to carry an increased excess than to carry a percenatge of the risk yourself by under insuring.

twhillas
  • 17th Feb 2020 10:29pm

Have noted that home & content insurance premiums have been increasing at the rate of some 20% plus per annum due to exceptionally extreme weather events in other states since the floods in 2011 to the point of where I am seriously considering cancelling my policy as I will not be able to afford any subsequent premium increases as a result of the current catastrophic bush-fires in every state - increases that will assuredly take place.

Geraldine 31954030
  • 17th Feb 2020 07:06pm

I have home insurance but I am now wondering if I am fully covered for fire and floods . I am pretty sure I am covered for fires but not floods . Also wondering if I have under insured . Anyone who owns their own home and doesn’t have home and contents insurance is crazy . To much of a risk not too . I am always willing to change for a better deal if my insurance premiums increase but I will never ever not have insurance

Ziah
  • 17th Feb 2020 06:59pm

If I live in an area of low risk, I do NOT agree that I should have to pay more to cover those in an area of high risk or who have had significant events. I I have a significant event or live in an area of high risk (of any insured event, such as bushfire, floods, storm surge etc) I should expect to be paying a premium that reflects that risk. If I was smart enough to choose where I live based on the likelihood of certain events occurring (I live on an elevated block several km from the coast, away from high fire risk areas and with average crime rates), why should my premium increase because a totally different part of Australia had a major event occur? How is that in the least bit fair? And there is no way I would expect someone on the other side of Australia to have their premium increased if there was a major insured event where I live, either. Premiums should ONLY be based on that individual's risk assessment, not anyone else's, and definitely not a totally different part of Australia! It is utterly ridiculous!

We WILL be reviewing our insurance once all the dust settles from the recent events, and if our premiums rise more than I believe are justified by OUR circumstances, I WILL be shopping around.

tuyet_tran
  • 17th Feb 2020 06:54pm

Im only renting so make sure that I always have rental (contents) insurance to make sure if anything. The rest is all looked after by the real estate agent. Not really concerned about insurance premiums.

Brad
  • 17th Feb 2020 06:50pm

Hmmm, this is a complex issue. Climate change must mean weather crises will continue to increase globally. We currently divide our policies between three companies. Our main insurer provides us with a 25% discount (multiple-policy discount).

If you study how insurance operates in Australia, you'll find that despite a large number of insurers, a few large companies 'own' nearly all of those you might have believed 'independent'. Takeovers often mean increased premiums. We had a dozen policies with one such 'independent'... who immediately doubled and trebled premiums, once our insurer flick-passed non-health policies.

Premiums _are_ negotiable. Never, ever authorise automatic renewal. It's equivalent to giving a stranger your credit card... .
Oh, you're happy to do that? Nahhh, you may be busy, but you're not crazy... .

Not sure the rich will get richer if premiums increase. Increased risk and increased premiums hurt _everyone._ We must apply maximum pressure to all political parties to reduce weather crises. We all bear the responsibility (and cost) if governments we elect promote policies and practices which harm the environment, exacerbate global warming and increase the risk to future generations.



Andrew 31639627
  • 17th Feb 2020 06:44pm

I have found over time that insurance companies never pay out what you expect when you have an incident. If you are ‘low’ to ‘medium’ risk I believe that you put the same amount aside each week as a premium would be. When you have an ‘incident’ you would highly likely have sufficient put away to pay the full amount without any shortfall. Unlike your claim which normally has a shortfall too. I do this for all types of insurance as I have found the amount you have paid never exceeds what you get back.

Goulah
  • 21st Feb 2020 11:59pm
I have found over time that insurance companies never pay out what you expect when you have an incident. If you are ‘low’ to ‘medium’ risk I believe that you put the same amount aside each week as...

This is not always the case Andrew. Five years ago my hot water system burst and as it is in the spare room, there was damage to carpets, underlay, boxes of possessions and some bookshelves. The assessor came to look around and noted that many books I had on the floor (I had run out of room on the shelves) were damaged and said "don't forget to put those on your claim". He also saw some electrical appliances which had got wet and said that I also should claim for them. All my damaged items were replaced as "new for old", damaged underlay replaced and carpet dried and stretched to be as new.

capfantastic
  • 17th Feb 2020 06:27pm

Insurance is managing risk. If the risks increase so should the premium. However does this make the rich richer and the poor poorer? I think the financial divide will increase with this strategy.

Goulah
  • 22nd Feb 2020 12:00am
Insurance is managing risk. If the risks increase so should the premium. However does this make the rich richer and the poor poorer? I think the financial divide will increase with this strategy.

I like your way of thinking.

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