Ensure your insurance is sound

We value our home and cherish our belongings but are lax when safeguarding them, Tim McIntyre writes

AUSTRALIANS are obsessed with owning a home and improving it, but dangerously lazy when it comes to protecting their castles and the treasures within.

New Comparethemarket .com.au research revealed two in three homeowners not only don’t know the value of their possessions, but don’t know what they are insured for.

The survey of 1000 adults with home and contents cover found 69 per cent are in the dark as to the true value of their contents and 42 per cent don’t keep records of their possessions for insurance purposes.

Of those who did keep records in the form of receipts, valuations, certificates of authenticity and photographs, just 10 per cent kept those documents offsite for safety.

Meanwhile, some households were in danger of noncompliance, with 72 per cent not making alterations to their home to meet the terms and conditions of their policy; and 63 per cent admitting they hadn’t read their policy details in full.

“Over half had skimmed the cover details so weren’t sure what they were covered for,” said Comparethemarket .com.au spokeswoman Abigail Koch.

“It’s shocking because our home is our most valuable asset.

“They are long, boring and difficult to read, but given it’s protecting something so important, I would say ‘please just make the effort’.

“Using contents calculators can help you work out how much your contents are worth.

“Photograph things in your home using your phone, just in case you have to prove ownership.”

Daniel Lewkowitz, CEO of Calamity Monitoring said there are a number of bad habits that compromise a homeowner’s ability to claim insurance in the event of an incident.

1. Leaving homes unattended for extended periods.

“If a home is left unattended for more than 60 days, it may not be covered,” Mr Lewkowitz said. 2. Leaving spare keys out. “Spare keys should be kept with a family member or trusted neighbour …. or consider alternatives like pinaccess key safes.”

3. Leaving windows open for “air”.

“Even if thousands of dollars are spent on the best security, an open window will mean easy access for a burglar.”

4. Not following through on what has been disclosed to the insurer.

“If policy documents show that an alarm is installed, homeowners must turn on the alarm when they leave the house.”

5. Forgetting to lock garages and sheds.

“Garages are a common entry point for burglars and it’s important valuables are not stored inside … and that they are locked when the home is unattended.”

6. Not noting changes to their insurance.

“Product disclosure statements can change year on year and could expose homeowners to risks if they don’t ensure their home and contents comply.”