Insurance is a financial product provided by insurance companies to protect you and/or your personal property against the risk of loss, damage or theft. There are many different types of insurance available today; some types are compulsory, such as house insurance if you have a mortgage on your home. Here are some of the most popular policies explained.
Home insurance, also known as property or buildings insurance, is essential if you own a home. This type of insurance covers you for damage to your house caused by risks such as fires and floods. Most home insurance policies cover your main dwelling and any lockable outbuildings.
Contents insurance covers the cost of repairing or replacing household personal possessions and furnishings, such as TVs, computers, clothing, jewellery, furniture and white goods. It is essential for both homeowners and renters. Most contents insurance policies offer new-for-old cover. This means that they cover you for the full cost of replacing possessions with new.
Car insurance is a necessity if you own and operate a private motor vehicle. There are four main types of insurance: compulsory third party (included in your vehicle registration), which covers injury to another person; comprehensive, which covers damage to your own vehicle and other people’s property; third party property, which covers damage to other people’s property; and third party fire and theft, which is similar to third party property but includes some additional features that cover your vehicle.
Travel insurance covers you for a range of losses caused by a wide range of events that can affect domestic or international travel, such as flight cancellations, medical emergencies and lost or stolen baggage. You should purchase it immediately after paying for a trip. That way, it will cover you for unused travel and accommodation in the event you must postpone or cancel your trip due to a covered event, such as a natural disaster.
It is important on the Sunshine Coast to ensure you take out the right type and level of insurance cover so that you are not underinsured, provided through brokers like those from Insuring theProduct. The golden rule is to purchase sufficient cover to protect against the financial costs you will incur in the worst case scenario.
This information is not intended to be advice and you should not rely on it as a substitute for any form of advice. You should always consider the PDS / Policy wording before making a decision.
Household insurance (understandinsurance.com.au)
Risk of underinsurance (moneysmart.gov.au)
understanding insurance (understandinsurance.com.au)