• Car Insurance “Fine Print” Trips and Traps! (Part 4)

    Posted on 27 June, 2018

    This month, the Donnellys team delve deeper into our Car Insurance series, and detailing in greater detail exactly what may lie in the fine print of your car insurance policy.

     

    Car left unlocked

    When you fill your car up with petrol, do you ever leave your car unlocked or keys left in it while you go to pay the bill? What happens if someone steals your car while you are paying the bill. You would expect your Comprehensive Car policy would cover that eventuality – most do. However one high profile insurance agency has a special exclusion in their little red car branded policy to avoid claims like this.

     

    Incorrect Fuel

    Several high profile insurers or agencies have a special exclusion to avoid claims in case you accidentally use the wrong fuel at a petrol station so you need to be very careful as it is an expensive repair job to fix this mistake.

     

    At Fault policy definition

    Most Car policy insurers will not penalise your renewal premium for a claim made when you are not “at fault” and you can identify the other party involved in an accident so that they can recover your claims costs from them.

    However, most policies do not define not “at fault “so therefore it is up to the insurer to decide whether they will penalise your premium or not. Usually the only time you are “not at fault” in a road accident is if another driver collides with the rear of your car. Intersection accidents are usually considered 75/25% blame between the parties so in that situation you would have some fault at least so your renewal premium may be penalised according to the policy wording.

    A few insurers do define not “at fault” which means as long as you are not mainly to blame in an accident your renewal premium will not be penalised for that type of claim.

     

    Passenger Liability cover

    Bodily injury caused to another person through the use of a registered vehicle is covered by individual states’ compulsory third party injury legislation. However the legislation in some states excludes injury caused by a passenger alighting from a vehicle when unsafe to do so.

    Some comprehensive car insurance policies have been extended to cover this gap in cover while others still exclude any bodily injury cover from any cause. It’s best to check your state’s legislation in this regard and your comprehensive policy conditions to ensure your passenger’s liability for injury to passers-by when opening a car door is covered one way or another.

     

    Fine Print Exclusions

    So it’s good to read the cover features of a policy but equally important is the need to be aware of cover exclusions or features missing when comparing policies so you know if you have the right policy for your circumstances.

    Check the table below, which compares certain features of prominent direct insurers’ policies.

     

    If you would like more information about any of the above articles, Donnellys would welcome your enquiry on (08) 8236 7789.

    Note:   This information is provided as general advice only to readers as a guide to Australian insurance policies. You should not rely solely on this information for your own situation and need to read the policy and PDS for any insurance that you are considering buying to ensure it suits your circumstances.

  • Home & Contents insurance “fine print” trips and traps (Part Two)

    Posted on 18 May, 2018

    In last month’s Part 1. Of our Home & contents insurance trips and traps series, we took aim at a few different types of cover, including accidental damage and holiday-home cover, and where to look for some standard industry trappings, laying out what some insurers may include in the fine print of a contract, and as well some areas where you may get tripped-up if you’re not diligently reading your insurance agreements.

    This month, we take a look at the finer details of what insurance companies define as ‘Flood Cover’, terms and definitions to look out for and the variety of cover options for you to choose from. As well, we investigate the nature of home-business and home-sharing cover, and what It can mean for your personal liability and contents safety.

     

    Flood cover

    Traditionally, if Flood cover was not covered by a Home & Contents policy, it was the insurer’s legal obligation to clearly inform a policyholder of that fact – otherwise, cover was deemed to be effective.

    As a majority of people are not exposed to a Flood risk it was unfair to charge everyone a levy to cover those who opted to build or buy a property in a flood-prone area, so Flood cover was not readily available from insurers.

    However, with the regular traumatic flood damage to properties in far north Queensland the Federal government decided that Flood cover should be more accessible from insurers and urged insurers to provide the cover. However, without extensive mitigation of flood risk areas by local councils, it is impossible for insurers to provide cover at a reasonable cost in high exposure areas.

    So instead of insurers providing automatic cover for Flood, we now have a mix of cover options for policyholders to be aware of as follows:

    1. The insurer provides automatic cover and spreads the cost of providing the cover over their whole portfolio of policies – cover cannot be deleted if the price is too high;
    2. The insurer provides cover with the option for the policyholder to opt out of the cover if the price is too high so it is clear they have made that decision in the event of a claim;
    3. The cover is optional and often very expensive in high-risk areas – policyholder has to make a decision at the commencement of the cover;
    4. The cover is not available at any cost which is highlighted in the policy.

    So what does Flood mean in terms of an insurance policy jargon?

    Generally, a flood is defined as the escape of water from any type of formal waterway such as a river, creek, reservoir, channel or dam as examples.

    The Flood definition does not exclude water overflowing from a gutter, leaking from a pipe or tank or water run-off if it has not escaped from a waterway, as examples which are covered as a standard insured event.

    Bottom Line

    So historically, it was an insurer’s responsibility to clearly inform a policyholder if Flood cover was not included. However, it is now almost a “buyer be aware” situation about Flood cover for a policyholder buying cover if they are not careful and be aware of the different policy covers offered. 

    Home Business    

    One high profile insurer excludes any Business activity from a home. However, most insurers provide some limited coverage for such contents as office plant and equipment, stock and trade tools at the premises only.

    The problem is that there is no cover for the business against its possible legal liability for injury or property damage to customers visiting the premises or others away from the premises. Also, there is no cover for the business’s legal liability in respect of any goods sold or manufactured. The reason for this is that it is difficult to underwrite the legal liability risk for the variety of business types that can be undertaken at home whereas contents cover is not so difficult to underwrite.

    The result is that business owners need to have a separate Public / Products liability policy to cover their legal liability which many small home businesses would not understand.

    The good news is that in the next few months a new Business Package policy will be available which includes all the required covers including legal liability and business interruption loss of income and extra expenses for many types of non-hazardous business.

    Home-sharing

    If you have a spare room at home and are following a worldwide trend like Airbnb rentals to earn some extra money from short-term tenants, you need to be aware that all home policies have a legal liability exclusion for most business activities causing injury or property damage (as mentioned above).

    Also, most policies will not cover tenant caused damage to your home or contents when letting out to others. Some insurers will insist you buy a Landlord policy which fixes some problems but creates others resulting in less cover than the normal home type of policy. Some others will insist you buy a Business package policy to get full coverage. And some insurers have a specific policy tailored for bed and breakfast businesses.

    One good solution is to buy a separate Tenants’ risks policy which just covers the gaps mentioned above in a conventional home policy which occur as result of having rent-paying tenants in your home. This solution then does not prejudice the cover of your home policy like having a Landlord policy instead.

     

    If you would like more information about any of the above articles, Donnellys would welcome your enquiry on (08) 8236 7789.

     

    Note:   This information is provided as general advice only to readers as a guide to Australian insurance policies. You should not rely solely on this information for your own situation and need to read the policy and PDS for any insurance that you are considering buying to ensure it suits your circumstances.

  • Home and Contents Insurance “Fine Print” Tricks and Traps (Part One)

    Posted on 02 May, 2018

    home, insuran

    If you’ve ever been caught out by the fine print in your home and contents insurance policy conditions, you’ll know all too well how important it is to make a careful and informed decision when choosing the policy that’s right for you.

    In the first instalment of ‘Home and Contents Insurance “Fine Print” Tricks and Traps’, we take you through some of the more common fine print items that you should be wary of.

    Unoccupied Houses

    All policies contain a clause that reduces insurance coverage to ‘basics’ after a specified period of time if the house is left “uninhabited”. What this means is that if you are way from the premises for an extended period you may not be covered for certain events unless someone lives in the house for a minimum stay(s) while you are away; or unless you obtain approval in writing from your insurance company and pay an extra premium and / or carry a higher excess for claims.

    Accidental Damage vs Defined Events Coverage

    Defined Events cover means that you are only insured for the events listed in the policy document, subject to policy conditions, limitations and exclusions. For example, the only purely accidental damage event covered is breakage of glass. Otherwise, the event must be due to another listed cause, such as water leakage etc.

    An Accidental Damage type of policy works the other way – it covers all accidental events claims unless it’s specifically excluded in the policy, so the coverage is more comprehensive. Another advantage (under many insurers’ policies) is the automatic cover for contents temporarily moved away from the home, which requires extra cover extension under a Defined Events policy.

    Holiday House Cover

    A holiday house that is let to short or long term renters should be insured under a Landlords policy. This is because a standard Home policy does not cover renter caused event claims, while a Landlord policy is designed to cover the different risks associated with renting a property out.

    If your holiday house is leased out for short terms, instead of yearly contracts, you will need to advise your insurer as not all insurers accept short term rentals cover due to the higher risk involved for damage to the premises.

    If you don’t let out your holiday house as it’s kept solely for the enjoyment of you and your family, you need to make sure that you know what the maximum period of time allowed in your policy is if it is uninhabited for long periods. Otherwise, the cover may be reduced. It’s not sufficient to have a neighbour check up on the property from time to time when it is vacant.

     

    When choosing your home and contents insurance policy, it’s important that you ask the right questions, and make sure your policy is actually covering your specific needs. This is where the team at Donnellys Insurance Brokers come in. We’ll gather all of the relevant information from you so we can recommend options for you to choose the policy that best suits your needs, without you having to do the legwork yourself. Contact us today!

    Note: This information is provided as a general advice guide only to Australian insurance purchasers. You should always read the Product Disclosure Statement cover summary and the detailed Policy document wording for full coverage details for any insurance that you are considering to ensure it meets your needs.

  • Car Insurance Tips and Traps (Part Three)

    Posted on 02 April, 2018

    In the final instalment of our ‘Car Insurance Tips and Traps’ series, we’re going to take a look at the fine print exclusions that could apply to your car insurance policy. We’ll also look at what happens when you use your car as an Uber vehicle, or if you need a rental vehicle after an accident.

    common car insurance traps

    Rental Car Cover After an Accident

    Most Comprehensive Car insurance policies will cover you for the cost of hiring a substitute car for up to 14 days usually if yours is stolen but not if you are involved in an At Fault accident while your car is being repaired.

     

    You may be able to find a repairer which can provide you with a loan car but you need to check your position regarding your liability for damage to the loaned car.

     

    For convenience to attend to your normal routines using your car, it is best to arrange optional cover with many insurers for a rental car while your car is off the road.

     

    Uber-Style Use of Your Car

    A standard Comprehensive Car insurance policy allows you to share your car use with passengers providing it is not for reward. Therefore Uber-style use of your vehicle charging passengers for transporting them will technically invalidate your policy. Some insurers have reacted to this new society sharing economy development for Car insurance by providing cover for this activity but limited to a nominated maximum number of hours use per week for this purpose.

    If this affects you, it is best to check with your insurer whether they provide this extra cover and what are the limitations of cover. However, don’t assume you have the cover without notifying your insurer in writing to gain their acceptance of this activity as you are responsible to inform them of any risk change to your previously disclosed circumstances.

     

    Fine Print Exclusions

    It is good to read the cover features of a policy but equally important is the need to be aware of cover exclusions or features missing when comparing policies so you know if you have the right policy for your circumstances.

    Check the table below, which compares certain features of prominent direct insurers’, policies to see why you need a broker to find the right policy for you.

    car insurance

    Disclaimer:

    The above coverage comparisons were compiled by Donnellys from the Product Disclosure Statements (PDS) / Policy Documents viewed on the individual insurance providers’ website as at January 2017. This information is provided as General Advice only and a Guide to the right policy for you. You should check the full details of coverage, cover limitations and exclusions before making a buying decision.

  • Comprehensive Car insurance Tips and Traps (Part Two)

    Posted on 05 March, 2018

    In part one of our Car Insurance Tips and Traps series, we looked at total loss claims, new for old car replacement and loan interest gaps. This month, we’re delving into everything from passenger liability for injury to car insurance claim penalties.

    insurance brokers adelaide

    Passenger Liability for Injury

    In many comprehensive car insurance policies, injury to others caused by a passenger opening a car door when unsafe to do so is not covered. But, Compulsory Third Party Liability (CTP) insurance for injury caused in an accident also excludes this risk in some states. So, it’s best to check whether you have this cover, so you can protect your passengers in the event of this type of accident.

    Loan Car Cover

    What happens if you are loaned a car by a repairer while your car is being fixed or when your car is being serviced and you have an at-fault accident in that car? Your comprehensive car policy will cover your liability for damage as a substitute car if yours is not being used at the same time, but not damage to the loaned vehicle.

    You will need to sign a document when taking delivery of the loan car which probably makes you responsible for accident damage either for the owner’s policy excess payable for a claim or maybe even the full damage cost or their loss of no claim bonus.

    So, it’s best to read any loan car agreement to check your damage responsibility and whether you have this cover in your comprehensive car policy in the event of this type of accident.

    Car Insurance Claim Penalties

    Having a car accident and dealing with the stress that comes with it is bad enough, especially when you have to arrange repairs and pay your claim excess. When you receive your renewal notice and your premium has skyrocketed due to your at fault accident penalty, it almost feels like too much to handle.

    Most policies don’t penalise your renewal premium in the following circumstances:

    • Your car is damaged while parked and you can identify the person at fault;
    • Whilst travelling your car is hit from behind by another driver’s car and you can identify the driver.

    This is because your insurer can recover your damage costs in these instances from the person at fault, including your excess payable for your claim.

    Most other types of accident involve some fault by the parties involved. Many insurance policies will apply an excess to your claim and penalise your renewal premium if you are at fault. So it’s best to have a policy that clearly defines what degree of fault will penalise you in an accident, e.g. greater than 50 per cent fault.

    The best way to avoid a hefty increase in your renewal premium in the event of an at-fault accident like a collision is to buy a Protected No Claim Bonus policy option, which is available from many insurers but it would pay you to check if you have this extra cover now or not.

    Donnelly Insurance Brokers can look after you in all the above-mentioned circumstances to ensure you get the right cover at the right premium for the best value coverage and assist you with claims for better insurance. Contact us today for more information!

  • Car insurance Tips and Traps (Part One)

    Posted on 05 February, 2018

    Ever wondered what you should look out for when purchasing a car insurance policy, or when making a claim? Check out the first part of our three-part series on common car insurance tips and traps.

    car insurance tips and traps

    Total Loss Claims

    When you insure your car comprehensively, there are two options to consider when looking at what claim settlement you will receive in the event of total loss damage or theft, namely:

    – Market Value or Agreed Value Claims.

    Market Value policies cover the cash purchase price of a car of the same age, type, model and condition in your local area but excluding other costs. In determining the market value, the internet, newspapers and dealer guides may be used for reference purposes. Sometimes a car can depreciate in value more rapidly than usual due to lower popularity, resulting in the claimant’s disappointment with their settlement. The problem with market value policies is the uncertainty about the claim payout value.

    Agreed value policies cover you for a fixed amount for which your car is insured for each period of insurance, regardless of any price change for your car during that period, guaranteeing your settlement payout. It includes the value of insured accessories and equipment. Agreed value is a better option because of its claim payout certainty but it often costs a little more in premium. Some insurers cover Agreed value automatically in their policy coverage.

    New for Old Car Replacement

    All Comprehensive car insurance policies these days cover the cost of replacing your car with an equivalent brand new one if it is a total loss, provided the car has not travelled more than a specified number of kilometres in the guarantee period. The replacement guarantee period varies from one to a maximum of four years, depending upon the insurers’ policy coverage conditions.

    Clearly, this is an important consideration when choosing a policy if you have a recent model to insure because this benefit offers you a new for old cover instead of a depreciated total loss settlement.

    Loan Interest Gap

    If you arrange finance for the purchase of your car, the interest payable is calculated on the initial amount borrowed on a fixed repayment for the term of the loan. Sometimes there is more money owed to the financier for the outstanding loan amount than is claimable from the insurer; in the event of a Total loss of the car due to its rapid value depreciation.

    To view policy comparisons for high profile insurance companies of the above-mentioned policy benefits, check out our guide to the insurance market!

    *This is General Advice only – you should read and understand the Product Disclosure Statements and Policies for insurers that you are considering for the purchase of insurance to ensure it is right for you.

  • Australia to Face Higher Than Usual Bushfire Risk This Summer

    Posted on 01 January, 2018

    In 2017, Australia experienced a particularly dry winter – the ninth driest on record, to be exact – as such, a senior climatologist with the Bureau of Meteorology has warned that there will be an increased risk of bushfires for the 2017/18 summer season.

    insurance broker adelaide

    Agata Imielska says that the below average soil moisture in the eastern and central parts of Australia, as well as forecasted heatwaves, will see parts of the country falling into a higher risk category this bushfire season.

    Rob Rogers, the deputy commissioner of the NSW Rural Fire Service and Gary Cook, Victoria’s Fire Authority deputy chief officer, both said that although local communities and families are given plenty of education and resources to assist them with fire preparedness, very little of this advice is being actioned.

    “It’s getting the community to take responsibility for the environment that they live in,” Cook said. “The fire agency is only one piece of the puzzle in managing fire…We continue to emphasise the need to have survival plans, to listen to fire danger ratings, so that [the community’s] behaviours start to reflect the information that is put before them, and they know what to do with that information.”

    So, exactly what is that advice?

    Tips for Preparing for Bushfire Season

    Every business and household, especially those with property within a bushfire zone or a high-risk area should have a bushfire plan in place well before summer hits. This should include an action plan that includes the whole family on what should be done, during, before, and after bushfire season, as well as what will happen in the event of an evacuation. This plan should include things like:

    • Keeping gutters clean
    • Keeping equipment, like hoses, rakes, and buckets in easily accessible places
    • Keep track of fire warnings and fire ratings
    • Don’t burn off
    • Ensure any fire hydrants are full and in working order, and that everyone knows where fire safety equipment is stored
    • If a fire is approaching, fill your gutters with water, hose down your garden and the exterior of your home, surround your home inside and out with as many full containers of water as possible
    • If an evacuation warning is issued and you have children, animals or elderly family members with you, get them to safety
    • Review your insurance policies and premiums to make sure you have the financial protection you need if your property is damaged in a fire

    Don’t wait until it’s too late to update your insurance policy.Many insurers now provide an extra cover feature which protects against a declared catastrophic event such as a bushfire. This extra cover is provided to meet the increased cost of repairing or rebuilding homes due to a labour and materials shortage resulting from high demand with a large number of claims. If you live in a high-risk bushfire area check your policy to ensure you have this extra cover feature.

    To find out what coverage is included in your home and contents insurance policy, or your business premises insurance, talk to your experienced insurance broker at Donnellys today.

    For extra guidance on what to do to prepare your property and family this summer, make sure you visit your state’s fire authority for guidance and put their suggestions into action.

    New South Wales, Victoria, Queensland, South Australia, Western Australia, Australian Capital Territory, and Tasmania.

  • New Mandatory Data Breach Notification Rules in Australia

    Posted on 04 December, 2017

    In February 2018, a new mandatory data breach notifications scheme will come into effect in Australia, with a number of companies being required to notify customers, as well as the Australian Privacy Commissioner of any data breaches.

    new data breach notification laws

    This new policy makes holding the appropriate cyber attack insurance more important than ever, especially considering new research has shown that small businesses are just as exposed as larger corporations to cyber attacks.

    For instance, in 2016 alone, the Australian Cyber Security Centre (ACSC) reported that approximately 90 per cent of small Australian organisations experienced a cyber threat or data breach, with 58 per cent of these attacks proving successful. These results have increased significantly when compared to data from previous years.

    The Cost of Cyber Security Breaches in Australia

    Regardless of how secure your network is, small businesses do have the risk of falling victim to a ransomware attack or a data breach. This can impact your business in a variety of ways and can come with a number of associated costs, including:

    • IT forensic costs
    • Customer notification costs
    • Increased costs of working
    • Legal defence costs
    • The costs associated with a loss of customers, due to lack of trust

    Data breaches can also have a negative effect on your business’s image and reputation, which can influence your future earning potential.

    Large-Scale Data Breaches in Australia

    In the last year, Australia, and the world has been hit with a series of major ransomware attacks, which have affected both big and small businesses alike.

    The latest cyber attack to hit Australian shores has seen 50,000 Australian personal records, including full names, passwords, IDs, contact details, credit card details, and even confidential salary information become vulnerable.

    In what appears to be one of the country’s largest data breaches, second only to the leak of information on 550,000 blood donors last year, a whopping 48, 270 Australian employees from several government agencies, banks and utility organisations have had their personal information left accessible as a result of a misconfigured Amazon S3 bucket.

    Thanks to this third party misconfiguration, the likes of AMP, UGL and even the Department of Finance have been affected. The identity of the responsible third party is unknown, but the breach was reported to the ACSC, allowing all of those involved to start working on a fix.

    “Once the Australian Cyber Security Centre (ACSC) became aware of the situation, they immediately contacted the external contractor and worked with them to secure the information and remove the vulnerability,” a spokesperson for the ACSC’s parent agency said.

    “Now that the information has been secured, the ACSC and affected government agencies have been working with the external contractor to put in place effective response and support arrangements.”

    This is just one example of the vulnerabilities and risks that are faced by countless Australian businesses. It is hoped that the new mandatory data breach notification laws will help the relevant Australian authorities crack down on cyber threats to businesses, while also minimising the effect of such breaches.

    However, holding an appropriate cyber attack insurance policy is an absolute must for any business, as the costs of a successful cyber attack can be crippling. To learn more about how you can protect your businesses finances through the appropriate insurance schemes, contact Donnellys today!

  • Important Investment Property Insurance Tips

    Posted on 06 November, 2017

    A large number of Australians are attracted to the residential property investment market because of the substantial financial returns that are well within reach in this relatively safe environment.

    residential investment properties

    This is largely because the property market is considered a wise investment when compared with traditional investment options that can’t match the leveraged growth potential of residences in prime locations over a prolonged period of time.

    Residential property investors often use their properties in one of the following three ways:

    • For their own use as a holiday house.
    • As a full-time rental property for suitable tenants.
    • As a part-time seasonal rental and for their own use on a part-time basis when it’s not rented out.

    Extra Insurance Coverage for Property Investors

    When a property is being used for any of the above-listed purposes, investors need to be aware that a standard home policy might not provide the coverage they need for proper protection.

    Some common exclusions for investment properties in standard home insurance policies include:

    • If the property is left unoccupied without approval from the insurer for longer than the standard period of time defined in the owner’s policy, the cover will automatically be restricted to a basic level.
    • If the property is leased full time to tenants, then a standard home policy does not cover certain risks relating to the tenant’s occupancy. Some examples of this are: Default of Rent, Deliberate or Malicious Damage, Theft by the Tenant, and Tenants’ Pet Caused Damage. For proper protection, these specific risks will need to be insured under a Residential Landlords’ policy.
    • If the property is leased on a part-time basis to tenants for short stays, particularly during peak tourist seasons, many landlord insurers will not cover the owner for tenant-related claim events. However, cover for these types of risk is available for the short term through specialist landlord insurers, such as Rent Default. This cover can also provide protection for additional risks like drug-related cleanup and garbage removal.

    As you can see, securing the right investment property insurance involves a lot, which makes undergoing this task by yourself difficult. Donnellys have been guiding residential landlords through this process for more than 40 years. Contact us for assistance in obtaining the best value residential landlord property insurance today!

  • Insurance Traps and Tricks to Watch Out For (Part Two)

    Posted on 28 September, 2017

    As we discussed in Insurance Traps and Tricks to Watch out For (Part One), insurance policies are sometimes marketed to sound better than they actually are. In the second instalment of this two-part series, we’re going to look at common tricks employed to make you think you’re saving money, as well as some common traps that can mislead bicycle owners.

    Common insurance policy exclusions

    Insurance Policy Prices

    You know the old saying, “you get what you pay for”? Well, when it comes to insurance policies this is usually the case!

    Cheap Premiums

    Cheaper premiums usually mean that the insurer is cutting costs somewhere. When you purchase a policy with premiums that are much cheaper than you originally expected, it usually means your policy will have more exclusions than other more expensive ones.

    Another way an insurer can make the lower premiums justifiable to their bottom line is by increasing the cost of your excess in the event you need to make a claim. This means that despite the low premiums, you could end up spending more on your excess or paying for coverage gaps in your policy if you need to make a claim.

    Online Discounts

    More often than not, when you see high profile insurance companies offering generous online discounts, these discounts are only applicable for the first 12 months of the policy. This means that once your first year is up, your premiums will automatically tick back over to the company’s standard, higher-cost rates.

    When taking advantage of these discounts, you’re also taking the risk that the cover might not encompass as much as you might expect, which is why we recommend consulting with a broker before purchasing an insurance policy.

    Changing your insurance to a different provider once your initial 12-month contract is up to save money creates extra work and stress for yourself. And if you discover you weren’t covered in the event of a claim, how are going to know next time you won’t fall for the same type of “fine print traps” contained in policies sold directly to unsuspecting customers. Checking policy covers and exclusions yourself can help if you have the time and know-how. But how do you check how good the cover is when you can only check what cover is included and excluded in the policy without having the skill and training to know what important coverage words are missing? Being your own insurance broker can be very costly in the long-run!

    Insuring Your Bike

    If you’re insuring your bicycle, make sure you’re aware that a lot of policies will have a limit on the value you can claim if your bike is stolen from your property. Standard home insurance policies also won’t offer coverage if the bike is damaged or stolen in an accident or a competition away from the home unless you pay extra for a policy extension. 

    Why Choose Donnellys?

    Working with an insurance broker from Donnellys comes with a host of benefits, the most beneficial one being that we’ll be working with you, not for the insurance companies. This means we’re looking out for your best interests first and foremost. Another great part of working with an insurance broker is that we’ll take the stress out of making a claim, as we’ll handle all the nitty gritty and argue your case in disputes on your behalf.

    We also offer easy monthly payments so don’t be persuaded by direct insurers to accept less cover for the convenience of their monthly payment offer online.

    Want to learn more about how we can help find the best insurance coverage for your needs? Get in touch today!

  • Insurance Traps and Tricks to Watch Out For (Part One)

    Posted on 21 August, 2017

    Sadly, not all insurance policies are created equal, and there are many fine print traps to be aware of and tricks that marketers will use to make even the worst policy sound perfect.

    insurance traps and tricks

    Here, we run you through some of the insurance traps you should watch out for when selecting your home and contents insurance, and your car insurance.

    Home and Contents Insurance

    Donnellys can help ensure you don’t get caught out by any of the following home and contents insurance traps.

    Common Exclusions

    Upon close inspection, a lot of home and content insurance policies, especially the cheaper ones, don’t actually cover as much as you might expect.

    For example, your jewellery might not be covered at home under certain budget policies, or cover might be capped at only a few thousand dollars against theft. But what about accidental loss as this is not covered unless you have the right cover! Certain insurers’ marketers might mislead you with their advertising into thinking you have cover for jewellery and other personal items away from home but you have no cover at all away from home unless you buy extra cover.

    What Happens if You Go On an Extended Holiday?

    Did you know that most home and contents insurance policies have a 60-day holiday limit? This means that if you head out on an extended holiday, of more than 60 days and don’t notify your insurance company, you won’t be fully protected against all of the risks covered included in your policy, such as break-ins.

    Home-sharing

    If you have spare room at home and are following a worldwide trend like AirBNB rentals to earn some extra money from short term tenants, you need to be aware that all home policies have a legal liability exclusion for business activities causing injury or property damage. Also, your policy might not cover tenant caused damage to your home. Some insurers will insist you buy a Landlord policy which fixes some problems but creates others, some will insist you buy a Business policy to get full coverage and some insurers have a specific policy tailored for bed and breakfast places. Check with your insurer or insurance broker what is covered by your policy.

    Car Insurance

    Finding the perfect car insurance can be tricky, but picking up on all of the fine print in car insurance policies can be even harder. Here are some of the more popular traps in policies from some car insurance providers.

    How You Use Your Car

    If you decide to use your car outside the parameters of what’s considered personal use, you’ll need to talk to your insurer and upgrade your cover to a business policy, otherwise, you won’t be properly covered. So, if you’ve decided to earn some extra money on the weekend by becoming an Uber driver, but if you haven’t checked your coverage, any insurance claims for damage to your car or someone else’s made to your insurance company might be rejected.

    If You Have a Car Accident

    If you’re involved in a car accident, you’re usually only deemed not responsible is only if your car is hit while it’s parked or if someone runs up the back of you, and the responsible party can be identified. If your accident doesn’t fit within these boundaries, your no claim bonus will most likely be penalised.

    But most insurance policies provide a protected no claim bonus option in the event of an at fault claim, which is available at an extra cost and will insure your loss of two year’s no claim bonus and so avoid increased renewal premiums for next two years.

    If Your Car is Financed

    If you are not eligible for a brand new car to replace an older one in the event of a total loss (new for old cover is usually only within 2 years of car purchase) then sometimes you might owe a finance company more money than the claim value of the car if it has depreciated quickly, amounting to thousands of dollars.

    However, you can purchase Finance Gap cover to protect you for up to 75% of the extra amount due to be paid to your lender. But, keep in mind that the amount you receive will be dependent on the insurer’s assessed write-off value of the car. The good news is that at Donnellys this extra cover is usually included at no extra charge.

    Here at Donnellys, we believe that comparing individual policies is sometimes like comparing an apple with an orange, especially since it’s hard to tell whether the apple is rotten inside until it’s too late. We’ll take the stress out of choosing an insurance policy by doing the research for you, and presenting you with only the highest quality fruit.

    Contact us today to learn more about what you can really expect out of your home and contents insurance, and your car insurance policies.

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