Unguarded Assets
Sydney Morning Herald
Tuesday December 16, 2003
The devastation caused by summer blazes highlights the need to have adequate insurance.
As the ACT inferno lit up television screens in January this year, Australians held their breath waiting for news of casualties or, worse, a death toll.
Another nagging worry that swept through onlookers and Canberra residents alike, was the fear that those whose homes and possessions had been destroyed may not have had insurance to help compensate those losses.
The Insurance Council of Australia says almost one quarter of all households do not have insurance for their homes or their contents. This problem is further exacerbated by those who do have insurance but, when disaster strikes, find that they are under-insured.
Insurers can help you estimate your valuables and some have calculators or templates on their websites to assist you; the NRMA, for example, has an excellent Rebuilding the Cost of Your Home calculator on its insurance site.
Risk control strategies such as deadlocks on doors and windows, hardwired fire alarms and back-to-base security alarms may reduce the premium charged by insurance companies.
A Nation Charred, the report by the House of Representatives Select Committee into the recent Australian bushfires released, in early November, suggested that the Insurance Council of Australia co-ordinate a public education campaign aimed at illustrating the importance of asset protection and how this can be achieved.
Additional insurance benefits
Read your insurance policy to determine whether your insurer covers you for the following:
Fusion (damaged electrical motor).
Accidental damage.
Demolition and removal of debris.
Temporary accommodation should you be unable to live in your home.
Architects, planning and legal fees.
Liability cover (provides protection against third parties injuring themselves. This is an issue for residents with vacant lots where their homes were destroyed).
Inclusion/non-inclusion of GST.
Portable valuables.
Sub-limits on landscaping and plants.
Increased costs allowance associated regulations (for example, the Building Code of Australia).
Source: Mark de Kleuver, insurance advisor,
ACT Bushfire Recovery Taskforce
If you run a small business from home, you need to take the following measures to ensure the safety of your records and operations:
Make sure you store a copy of your hard drive offsite and regularly update these records.
Annually review your insurance policy and sum insured, ensuring all your assets are covered, including tools of trade, furniture, computer and office equipment.
© 2003 Sydney Morning Herald
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