The recent battering storms which have affected the Sydney area serve as a stark reminder of the importance of insurance. With significant coastal property damage, particularly in areas with some of NSW’s most luxurious oceanside real estate, Australians are running to ascertain that they are fully covered under their insurance policies. Underinsurance strikes a startling number of residents, including 81% of Australian homeowners and renters. Other statistics suggest Australia is one of the most underinsured nations across the globe. This is a frightening consideration when it comes to protecting one of your most important assets.
Do you have insurance? And perhaps more importantly, do you have adequate cover?
There are many different types of insurance cover that the typical individual or family may utilise. Some of these, depending on your circumstances, may be mandatory. For those running a business, some insurance types will be required by law, such as public liability for certain industries, while others, such as business interruption insurance, will be totally optional. There is also a variety of non-compulsory but highly recommended insurance for your business property, assets, and more.
Homeowners may not legally be required to hold home property insurance, however, if you have a mortgage on your home, most lenders do require you to have home insurance cover. After paying off a mortgage, home insurance is still very highly recommended.
Going bare, as it is sometimes referred to in the insurance industry, means proceeding without any non-compulsory coverage. This choice to live and work without insurance represents a particularly risky scenario for any individual or business, with possibly devastating consequences.
Simple Risk Management
Possessing the adequate and proper insurance for all of your property, assets, and liabilities, is simply the best and most effective approach to managing risks. While you may not be able to anticipate disasters or emergency situations, assessing the potential risks to a home or business (particularly with the assistance of a professional broker) can ensure you are protected in case the worst should happen.
But basic coverage is not always enough. Each situation and each client will present varying needs that will influence cover. Underinsurance is better than no insurance, but it may still not be satisfactory. The recent Sydney storms have incited an influx of claims on insurers–approximately $38 million in losses has already been estimated. Will these Australians’ policies come through for them?
A Review May Be in Order
Inclement weather always serves as an eye-opening reminder to check that our own properties are adequately covered. For instance, does the home insurance on your coastal property include damages caused by ocean swell? And how does taking risk management steps (such as building a seawall) factor into that? If you own a business, do you have business interruption insurance? If a storm prevents you from opening or operating for several weeks, what will you do? Do you know how to protect your income in case of a significant resource shortage or other widespread disaster?
It’s clear that insurance is a complex subject, and becomes even more so if you own a home or business property. Partnering with an experienced broker can make all the difference in helping you assess risks, compare policies and, and obtain the proper full cover that is right for you.
Don’t let what matters to you go unprotected. The team at Macey Insurance Brokers would be happy to help you review your current covers and discuss ways to keep your home and livelihood secure.