Type of Policies Available

Generally there are two different home and contents policies available. They are commonly referred to as "Accidental Damage" and "Defined Events". Defined Events is also sometimes known as "Insured Events".

The difference between the policies is summarised as follows:

 

Accidental Damage

This policy states in the insuring clause that you are covered for any accidental loss or damage. It then lists what you are not covered for (exclusions).

 

Defined Events

This policy specifically lists the events that you are covered for. Anything not mentioned is not covered. Some of the defined events included are:

• Fire
• Theft
• Storm damage
• Lightning
• Explosion
• Accidental breakage of glass
• Malicious damage 
• Earthquake
• Impact damage 

Note that both policies will not cover flood. Flood is usually defined as water escaping onto normally dry land from any river, creek, lake, reservoir, canal, dam or other watercourse, whether natural or not.

 

Accidental Damage cover is more commonly taken than Defined Events. It’s a much broader cover and it can cover circumstances that may not be listed on a Defined Events policy (such as accidentally dropping an expensive object).

 

Both policies automatically include personal Public Liability cover for you and your family living at the situation. In summary, Public Liability covers you or your family for legal costs and compensation as the result of an occurrence in which you were negligent and caused injury or damage to someone or someone’s property.

 

How much do I insure for?

The most common type of insurance is to cover most items for "new for old", also known as replacement value. It is imperative that the sum insured you select represents the full replacement value of your home and contents. Failure to insure for the replacement value can result in the amount of a claim being reduced proportionally by the amount that you are underinsured.

 

Listed Special Contents

Many items need to be specified on the policy in order to be insured for their correct value. Items such as jewellery, gold or silver articles, paintings, works of art, antiques, furs and special collections all need to be listed. Generally, if these items are over $1,250, they require written valuations that are under 3 years old.

 

Many other contents are restricted to certain amounts, unless the items are individually specified. Some examples are: money and negotiable documents, recorded music collections, musical instruments, home office contents, tools of trade, computers and spare parts for motor vehicles or motor cycles. Each insurance company has its own limits, which are detailed in the policy document that we supply on arranging the cover.