Welcome to the start of storm season.
South East Queensland has really been battered by thunderstorms this week and we’ve seen the start of cyclones across the Top End.
I know the cost of living is still hitting the household budget of many Australians but don’t sacrifice your insurance cover to save money. There’s an old saying: “Insurance is a waste of money … until you need to make a claim”.
And don’t think you can skip insurance until you’re about to face a disaster. Insurance companies are on to that.
Take cover
When disaster strikes, insurers often pause the sale of new policies. This prevents people from taking out cover only when the risk is high, without having any prior plans to be insured.
Embargoes typically come into effect when warnings are issued for fires, floods, or storms. Insurers may also impose a waiting period before claims can be made on new policies. So review your policy before it’s too late.
If you already have cover in place, the good news is storm damage is usually included as standard in home and contents policies. But please review your policy carefully and understand what’s covered.
It’s also wise to take photos of your property and belongings. If you need to claim, having evidence that damage occurred during a weather event can help speed up the process.
Common claims
A nationally representative survey by Compare the Market (CTM) revealed storm damage was the most common event leading to claims.
Of the 23.4 per cent of Australians who had claimed in the past five years, the survey found:
- One in five claims (20.6 per cent) related to storm damage.
- 8.8 per cent of claims were linked to floods.
- 17.6 per cent were related to water damage, including leaks and burst pipes.
- Theft was another leading source of claims with 17.6 per cent of claims linked to stolen goods.
And, while there’s no such thing as ‘flying trampoline cover,’ damage caused by flying objects during a storm is generally included under standard home and contents policies. Even if the flying object doesn’t belong to you, you’re still responsible for protecting your home and covering any damage it causes.
Also, don’t forget the fridge. If there’s a blackout and you lose perishable goods in your fridge, check whether your policy covers spoiled food – restocking can be costly, and some policies will cover you for that.
Shop around
Also, and as I always say, it pays to compare. Insurances are a huge burden on family balance sheets. CTM research shows a family with a typical car and four-bedroom home could be spending upwards of $4,000 on policies each year.
But there are considerable discounts for people who choose to shop around. Quotes for home and contents cover at one Brisbane address varied as much as $2,857. I can think of a few better ways to spend that money!
