Frequently Asked Questions Q: How much does my broker get paid? A: Brokers’ compensation comes primarily from commissions on the insurance purchases they make on behalf of their clients. In many insurance transactions, commissions on the purchase are the only compensation that the broker receives. This compensation varies from product to product. The amount of commission we receive always appears on your invoice and on any Statement of Advice we give. We are required by law to give you an overview of our fees and commissions and how we operate before we do business with you. Because our remuneration is dependant on the products you choose we can only tell you in general terms at this stage of the transaction. The document we provide is a Financial Services Guide (FSG) If you would like to know more information on how we are remunerated please ask your broker. Q: What things should I consider when buying a Home Insurance policy? A: When to Buy Home Insurance Generally insurance coverage on your home should begin as soon as you become the legal owner, even if it is still under construction. In NSW the risk associated with owning a property transfers at the earlier of the settlement of the sale or when you take possession of the property. You should insure all contents that you own or are legally responsible for. A common mistake is making a major purchase or even doing extensions throughout the year and not notifying your broker. In this situation you may be underinsured or at worst uninsured. When comparing quotes and coverage, don't forget service! While good service may cost a bit more, it is well worth it, especially when it comes to claims service. Insurance Shopping Tips Discounts - Some insurers offer discounts or other incentives for policyholders who install smoke alarms, sprinkler systems, and monitored intruder alarms. Some reduce premiums for seniors. Some insurers offer discounts to loyal, long-term policyholders. Excess - Consider lowering your premiums by opting for a higher excess for claims relating to your home and its contents. An excess is the self-insured part of each loss or the amount you must pay for each claim. Most of the time you do not pay the excess, the insurer will deduct the amount from a claim payment. Don't 'under' or 'over' insure! - Don't underinsure the contents of your home. Estimate the replacement value of your possessions and update your inventory at least once a year. Remember to include GST. If the value of your possessions is greater than the amount of contents coverage specified in your policy, have it changed accordingly. Don’t underinsure your Home. Remember your building sum insured does not include the market value of the underlying land. In most cases it should include the costs to demolish the house and any council fees or architects fees to rebuild or repair. To fully understand how much insurance you need you should read your PDS and understand what Insurance companies consider your Home and your Contents to be. Generally, insurance Brokers can not give you advice on how much your home or possessions are worth. You should consult a licenced valuer if you have any doubts. For a more cost effective solution available on the internet go to www.reidconstructions.com.au. Questions to Ask Your Insurance Broker About Home Insurance Home insurance coverage can vary from one company and policy to another, so if you are planning to purchase the insurance yourself please do your homework. We suggest that you use a broker to make sure you have the cover you require. Ausure Brokers have access to up to date information t o be able to advise you accurately on your insurance. To test us or if you use another broker we have provided a sample of some questions you may ask to be satisfied that your broker has advised you correctly. The answers provided are very general, so ask your broker questions specific to your policy. 1. What kind of home/tenant home insurance coverage do I have? a) Some policies cover only "named perils" - in other words, if the "peril" (the cause of the damage) isn't listed on your policy, it isn't covered. This is generally referred to as a Defined Events policy. Examples of the main perils are Fire, Storm or Earthquake. b) Other policies provide Accidental Damage cover for your home. Instead of listing what is covered, many accidental damage policies list what is EXCLUDED, or NOT covered. Under these policies events like dropping contents or spilling things on carpet are often covered. 2. What's not covered in my home insurance policy? Depending on your policy there may be a large number of items and events, examples of events that may not be covered include Tsunami and Flood. Items that may not be covered include building materials stored at the house or car parts in your garage. If you are unsure if one of your items is covered or not you should question your broker, you should also check what events you are covered for. 3. Are there certain risks or potential hazards to my home for which I can't buy insurance? No policy covers everything that could go wrong. And if it did, the premiums would cost too much to be useful. Insurance is intended for unforeseeable events, flooding, for example, in not a part of many policies. 4. Is optional coverage available for hazards/risks that are not normally included in my homeowner's policy? Yes. For example, if you are doing renovations your policy may be void and you may need a construction policy. You may need a policy that includes fusion, flood, and damage by tenants or cover for your contents whilst away from your home. 5. What things could am I required to do to ensure that I am covered when I have a loss? Each policy contains terms called conditions. These conditions require you to do, or not do something to ensure your policy is valid. Examples include minimising the damage once aloss has occurred and informing the insurer if you are doing any construction or renovation. These conditions are very important and you should be aware of them. If you fail to follow the conditions in the policy you may have your claim denied for failure to comply with a claims condition. 6. What are some items that might require additional insurance? The dollar limits to some items can be relatively small eg. cash. Coverage limits may apply also for certain types of items eg: bicycles, jewellery, watches, computer, mobiles, coin, stamp and card collections. Often these limits can be increased at minimal cost. You should also consider whether you need you contents covered outside of your home. Some policies give you a small amount of cover for certain items outside the home as apart of a standard policy. With many policies you buy direct from insurers this type of cover costs extra. 7. What is the Excess? Give me the price of my home insurance coverage with some different Excesses. The higher the Excess (the portion of a claim that you have to pay), the lower the premium. Compare the premium with different excesses, and then decide whether the lower premium is worth the higher amount you would have to pay out of pocket if you had a claim. 8. Am I entitled to any discounts and/or is there anything I can do to get a discount? Many insurance companies offer discounts to policyholders who have newer homes, who have installed safety features like smoke detectors and burglar alarms, and who have made no claims for a certain period of time. 9. On what basis are claims going to be paid? Most claims on home policies are paid on a replacement cost basis, meaning that the insurance pays the cost of replacing the damaged or lost item with a new one that is as close to the original as possible in functionality and quality. However, some policies limit the circumstances when they will pay ‘new for old’. They may only pay you the indemnity value, which means replacement cost LESS depreciation. 10. Should I make a claim with every loss? Although this is a very personal decision, before making a home insurance claim consider the cost of the damage compared to your deductible. If the difference is negligible, you may choose not to make a claim, especially if it meant losing your "no claim discount" (if offered by your insurance company). Losing your no claims discount may increase your premiums. 11. What kind of liability coverage do I have and how much? Many policies include cover for unintentional property damage, bodily injuries and legal costs for which you are legally responsible for up to around $5 million. This cover is an important part of protecting your assets so ask your insurance representative about the specific coverage in your policy. The information contained on this page is factual in nature and not intended to be financial advice. Any financial advice is general in nature and does not take into account your personal circumstances. You should consider the Product Disclosure Statement for a particular policy before you make a decision to buy the policy. Please contact us for a copy of a Product Disclosure Statement. Q: How Does Ausure protect my privacy? A: We recognise that your privacy is very important to you. We are committed to protecting the privacy of your Personal Information in accordance with the Federal Government's Privacy Act 1988. We have put in place certain rules that we follow as our guarantee to protect your privacy. These rules appear in our privacy policy