Home and contents insurance is one of the most commonly-purchased types of cover. But did you know, the policies are one of the most complex? Some can be up to 100 pages in length. For this reason, buying the cheapest policy you can find on the net without understanding what you’re REALLY buying, could end in your financial disaster…
Check out this short 2.07 minute clip on the topic prepared by our friends at NIBA. It’s quick and easy to understand and captures our fears for our clients about online shopping for insurance policies in a nutshell…
If you take away one piece of information from this little article, it should be this:
Make sure you are comparing APPLES with APPLES.
What do we mean by that? While there will be plenty of online providers keen to distract you with the cheapest cover they can manage, remember that cheap policy comes at a price.
Usually that price is the list of exclusions, or things you won’t be covered for, in the event of a claim.
Imagine spending years paying your annual policy premium only to find one day, when disaster strikes and you need to make a claim, that you are not actually covered as comprehensively as you had thought.
Worse still, imagine losing your home to fire and discovering the payout figure on your insurance policy doesn’t come close to providing enough to start again.
Underinsurance is a HUGE problem when it comes to Home and Contents Insurance.
A more expensive policy might cost you $100 per year more, but it could save you thousands in the long-term.
Talk to your MGIB Broker to ensure you are making a fully-informed decision about your Home and Contents Insurance.