Bushfires prompt insurance warning: Terri Scheer Insurance

With bushfire disasters seen recently in South Australia and Victoria, Terri Scheer Insurance’s insurance executive manager Carolyn Parrella is warning landlords to seek appropriate coverage now.

Parella said there has been widespread loss, from property loss to stock loss, and that it will take a while to examine the full extent of the damage.

“It’s often in times like these when insurance becomes front of mind, in terms of whether there is adequate insurance in place, or whether a homeowner is covered at all,” said Parella.

She warned that while price is often the first consideration for insurance, affordability should not be the only thing that investors look at when considering their coverage.

In fact it’s more about looking at the level of coverage, and considering the potential “what ifs”.

“This includes the location of the property and whether you live in a high risk bushfire zone or flood prone area, as the relevant building codes may alter the level or type of coverage required,” she said.

“My message to landlords is – don’t wait until it’s too late when it comes to insurance coverage.”

When submitting a claim, she warned that you don’t want to be discovering that you don’t have the cover you thought that you did or to find excesses that you hadn’t considered.

“It is a good idea to regularly review your policy and ensure appropriate coverage is in place.”

Here are some points to remember:

• It’s worth reading your policy wording, including terms and conditions, to ensure you are covered for what you think you are.
  
  
• Ensure your policy is up to date – an expired cover leaves you uninsured.
  
  
• Suitable building insurance policies should be checked for fire coverage and can cover rental income if the property is damaged and can’t be tenanted for a period of time.
  
  
• Specialised landlord’s insurance may be worth considering.

Source: Terri Scheer Insurance