The more you know about your policy the better


When a claim occurs to your home or contents; that is usually the trigger for you to pick up your insurance policy wording…it's that thing that is probably being used to prop up the short leg of a table somewhere. It is not uncommon for people to avoid reading it from cover to cover at the time of purchasing their insurance to know exactly what they have signed up for.


There is nothing more frustrating than paying a premium for several years only to find out that the one time you need to claim, you're not covered or the amount you can claim doesn't come close to paying for all of the loss. All because you didn't select an optional policy extension or pay to increase a variable sum insured.


So what do you do from here? Well, when considering an insurance policy a large percentage of people tend to look for the best price over the best policy. This unfortunately means, more often than not, that the product may have a more basic level of cover than its dearer counterpart. 

Insurance policies do differ from one insurer to the next however a brief example of some of the policy variances between a "defined events" policy compared to an "accidental damage" policy are:


  • Defined/Listed Events: Cover is limited to a list of event/s similar to the following:

  • Storm,

  • Burst pipes, leaks and overflow,

  • Fire,

  • Theft,

  • Breakage of fixed glass,

  • Impact,

  • Earthquake & tsunami.


Accidental Damage: Cover will usually include all of the listed events offered (by the 
same insurer) and they may also extend to cover events such as:

Accidentally spilling a bottle of wine on your carpet; dropping & damaging a TV or laptop computer; or putting your iPhone or iPod through the wash.


Whilst everyone's budget is different, it is still wise to make sure that whatever decision you make, it is an educated one. So take the time to talk to your broker or insurer and ask questions to make sure that you know exactly what you're covered for. After all, choosing a product based on price alone may end up costing you a great deal more should you suffer a loss.