The Courier-Mail

DIY insurance may not be enough in the event of disaster


HAVE you become your own insurance company and don’t know it?

Millions of Australian­s don’t pay for private health insurance, instead choosing to rely on their own means and Medicare, but millions more are unknowingl­y self-insuring themselves in areas such as personal insurance and home and contents.

While having an emergency fund to cover surprise expenses is always a good idea, insurance covers the big problems – theft, fires, floods, disability or death.

Self-insurance can work for wealthy people. But for many others it’s dicing with danger. HOME AND CONTENTS Understand­ financial capacity to resume the same standard of living if their home gets destroyed or badly damaged.

“We know that twothirds of renters and 7 per cent of homeowners don’t have contents insurance,” he says. “We also know that eight in 10 households believe they are underinsur­ed for their home and contents.” There are online tools that help with checking your home and contents. CAR Your own car might be a rust bucket, but what if you accidental­ly hit one of the many Mercs or BMWs that grace our roads these days?

“The compulsory schemes that every state and territory has in place are only for personal injury to road users,” Fuller says.

“It doesn’t protect you for damage to your own vehicle or damage your vehicle may cause to other vehicles.” Instead of choosing top-of-the range comprehens­ive car insurance, you could opt for third party property, fire and theft cover. PERSONAL INSURANCE Death, disability and income protection cover are all areas where Australian­s are underinsur­ed, research has found.

Anyone with dependants should have it – and disability and income protection insurance is important for all workers.

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