Insurance for Your Home and Contents
For many people, their home is the biggest and most important investment they will ever make. Not only does the home represent a huge financial investment, it also carries great emotional value. Therefore it makes sense to insure properly to prevent unexpected and unavoidable financial disasters caused by things like fire, storm or burglary. In Australia an estimated 31% of homes are uninsured. Of those with insurance, 43% are severely underinsured. The tragedy is that most people who have insufficient cover don’t realise it until after disaster has struck.
If you work from home, you may need separate or special cover for your business, because risks related to your business are not usually covered by home policies.
If you consult one of our brokers you will receive professional advice on how to decide which of the various products on the market are most suited to your needs.
Home insurance includes:
- Building Insurance
- Contents insurance
- Property Owners Liability
- Personal Liability
Where MSFS can assist –
Building Insurance – Building policies are designed for the main dwelling, garage and other outbuildings and gates, fences, drives, in-ground swimming pools and landlord’s fittings and fixtures. Check whether you have “reinstatement and replacement cover”, meaning “new for old”. Also check whether you have “accidental damage” cover, or “defined events” cover. Accidental damage cover is usually more expensive because it provides a broader cover.
Contents Insurance – Contents insurance can be included with Building insurance or purchased separately depending on who owns the building and whose contents are in it. The same options for type of cover as for building insurance need to be considered. Some policies provide replacement cost as new for all contents. Others involve some contribution to the claim by you, to account for the fact you are getting a new item but some allowance should be made for age, wear and tear. The cost of replacing furniture, carpets, personal possessions, etc, can be substantial and care should be taken when deciding on what to insure and for how much. Items like jewellery, electronics equipment, artworks, antiques, collections have policy limits on how much can be claimed unless otherwise arranged. There is usually an option to cover valuables and list expensive personal items such as jewellery and furs.
If you’re travelling overseas you should always consider purchasing travel insurance to cover baggage, clothing, etc, and other things like medical expenses – very important!
Property Owners Liability – Most building insurance automatically includes property owners liability insurance. This protects you should you be sued by another person who has been injured or has their property damaged whilst on your property in circumstances for which you are responsible. For example, someone (not your residing family) in your house falls down the stairs because the handrail gave way. The policy does not usually cover people who work in your home, such as cleaners or contractors.
Personal Liability – Most contents policies automatically provide this cover. A third party could sue you for committing a negligent act that causes personal injury or damage to property. The protection includes immediate family members and extents Australia wide. An example is an injury to a swimmer who is struck by your child on a boogie board.
Insurance for Your Car
As anyone who has ever had a car accident will know, it is wise to have insurance for damage to your car, and other people’s cars and property.
Because there are so many insurance companies and types of policy available, it is important you understand the basics before you make any buying decision. Price and detail of coverage varies from one company to another, so using one of our brokers can help you a lot.
Where MSFS can assist –
Compulsory third party (CTP) – This compulsory cover must be taken out when you register a car. It protects you against claims made by third parties for personal injuries and attendant legal costs, arising out of the use of your car when the person in charge of your car was at fault. Commonly referred to CTP, you must take out this insurance otherwise you cannot register any road vehicle. For more information go to the Roads and Traffic Authority (RTA) website in NSW, or the equivalent authority in your state.
Third Party Property Damage (TPPD) – This insures your liability for damage to another person’s vehicle or to the property of others (a fence, for example) if you caused the accident. It covers both the damage and if necessary, your legal defence. It does not cover any damage to your own car. If you decide you don’t want or can’t afford comprehensive insurance (see below), undoubtedly TPPD is vital insurance to have, because a big claim for which you are liable could easily bankrupt you, or a smaller one put unexpected financial pressure on you.
Third Party, Fire and Theft – This insures the events highlighted above under TPPD, as well as fire and theft to your own car. It also insures damage caused while the car is stolen.
Comprehensive – Comprehensive insures all of the above (except CTP, of course), plus damage to your own car no matter who causes it. If your car is under finance, this cover will usually be insisted on by the finance company so that their interests in your car are protected.
Please contact us on (02) 9959 2900 for a quotation or further details