Cover yourself or insurers can reject claim

LEAVING spare house keys under a doormat or in your garden could cost you a lot of money.

Consumers are risking voiding their home and contents insurance policies – and getting a theft claim rejected – by making some common mistakes.

Research group Canstar surveyed more than 3300 Australians and found while about half left spare keys with family or neighbours, more than one in five chose less covert locations, such as their gardens, letterboxes, hose reels, fake rocks or under doormats.

“No insurer actually says anything in policies about where you hide spare keys, but you have got to take reasonable care to secure your property, and that’s what can catch people out,” said Canstar’s group executive of financial services, Steve Mickenbecker.

“I don’t think the key under the doormat is reasonable care.

“If you forget to lock a door or window you may be covered.

“However, intentionally leaving out a way to gain access to your property might be viewed differently.”

Mr Mickenbecker said other ways people might unknowingly void their home and contents insurance included leaving a home open during renovations, failing to fix broken alarms, and theft by anyone who was invited into their home.

“If you invite somebody on to your property and they steal something, you are not covered,” he said.

Incorrect disclosure to insurers was the biggest pitfall, Mr Mickenbecker said.

“People think if I don’t tell them this I will get a lower price, but when it comes time to claim you find out you are not covered because you misled them,” he said.

“When dealing with your insurer, honesty is always the best policy. Combine that with common sense in securing your property, and you’ll avoid most problems.”

Industry data shows about 12 million householder policies are purchased each year, with about 850,000 claims lodged and 93 per cent of those claims accepted. That leaves about 60,000 rejections.

Lisa Kable, the Insurance Council of Australia’s understandinsurance.com.au spokeswoman, said leaving a house unoccupied for long periods without notifying an insurer was another potential claim-buster.

Ms Kable said other people had claims rejected by insurers because their policies had lapsed, strangers were living in their home, or they admitted they were at fault.

“Always read the Product Disclosure Statement so you are aware of policy inclusions and exclusions,” she said.

“Use building and contents calculators to accurately value your property and belongings. “Underinsurance is rife with eight in 10 homeowners and renters being underinsured for home and contents.”