The recent floods on the east coast of Australia, and the constant threat of bushfire that we endure almost every summer, are good reminders to check our house insurance.
Do you really know the extent of your coverage?
The seemingly faster drumbeat of natural disasters makes this an important question.
As an experienced real estate agency in your area, we know homeowners in urban areas can be susceptible to bushfire, rising rivers or flash floods as drainage fails to cope with mass volumes of water from heavy rain and storms.
If you’re going to assess your insurance coverage, here are five areas where policyholders find gaps. We hope you find this list helpful.
Acts of God
This is a favourite phrase that leaves you with big problems if a natural disaster occurs. If you’re not sure precisely what this means, you should contact your insurance company to clarify. Some policies may not cover you for unforeseen incidents, described as Acts of God. Double check if this means one in a hundred year events as these seem to be occurring a lot more frequently these days.
Rebuilding
Is your insurance sufficient to pay for a total rebuild of your home if it burns down or is destroyed by a flood? You could be in trouble if your policy coverage has not factored in rising materials and labour costs. Again, go to your insurer for advice if you’re concerned. Higher rebuild costs mean higher premiums but it could well be worth it.
Infestation
White ant or termite problems are common across Australia. Sometimes, you’ll not notice their damage until it’s too late. Repairs and remediation to kill the termites can cost thousands of dollars. Not all policies will cover you for this unless you’ve specifically asked for it.
Service lines
It’s normal for your internal water pipes and gas lines to be insured, but what happens if a water pipe bursts under your front lawn, or worse, a sewer line? Are you absolutely sure you’re covered? It doesn’t hurt to double-check.
Security
Make sure you always have your security system functional and turned on when the property is vacant. Your policy may be voided if you have received a discount because you have a security system but didn’t have the alarm on at the time of the break in. The same goes for locked windows and doors. If you don’t lock them, you’re inviting trouble when it comes to claim time.