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Are your assets protected by enough insurance?

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by Keris Lahiff

Almost a year on from the devastating floods that ravaged Queensland, MoneySmart, Australian Securities and Investments Commission’s (ASIC) consumer website, is urging people to check they have their assets covered with suitable insurance cover.

“To check your insurance covers you properly, start by checking your policy or contacting your insurer and asking them exactly what events you are covered for and what is excluded, for example damage from flooding,” says Delia Rickard, ASIC senior executive leader financial literacy.

Rickard also says it’s crucial to check the small print for things such as whether there are caps on how much you can claim for flooding and other events.

“Make sure you have enough home insurance cover by using online calculators on insurance websites to estimate the total cost of rebuilding your home,” she advises. “Be sure to shop around for appropriate cover and quotes. Phone potential insurers, and ask lots of questions.”

Home insurance policies usually fall into the following three categories: sum-insured, extended replacement cover or total replacement. Sum-insured is the most common and covers a pre-selected amount chosen by the person taking out the cover. Extended replacement cover refers to a sum-insured amount with a limited amount of extended cover in the case of complete loss. Total replacement cover includes the costs to rebuild in the case of complete loss.

If you do not own your own property, instead renting, consider taking out cover for valuable items such as home contents.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, December 02, 2011