8 common insurance traps to avoid
Fine prints of insurance policies are notorious for being filled with details to catch consumers out.
We’ve taken a look at eight of the most common insurance traps that are causing people stress.
Make sure you don’t get caught out by these insurance traps:
1. Taking a long break – if you’re away from home and fall foul of a natural disaster or break in you could stand to face hefty “unoccupancy excesses” when you go to make a claim. If you are going to be away for a while make sure you inform your insurer before you go just to be safe.
2. Putting off odd jumps – keeping gutters and roofs clear important, as is general upkeep. Some policies may require you to keep your home/unit upkeep well and if you fail to do so and are victim to something like a fire the maintenance of your home can be questioned when making a claim.
3. Not advising before renovations – if you’ve got renovations plans that will cost more than $50,000 you could affect your legal liability policies. Make sure you tell your insurer about any renovation project that may increase the value of your home so you’re not left in serious debt.
4. Not advising before getting a pool or spa – if you’re making this addition to your space make sure you check your existing policy document at these items might require separate insurance.
5. Boat or caravan hazards – boats and caravans stored in your front yard may add to your fire risk and won’t necessarily be covered by your general policy. Often you will have to get a separate one.
6. Garden items – under most home policies garden furniture, statues and even accruements like garden gnomes can be covered for fire damage or theft, but plants are another matter. Some premium policies will offer cover but only up to a maximum of $2,000 to be sure.
7. Doing business at home – New Zealanders are increasingly making a bit of extra cash by doing business at home, but most insurance policies don’t provide sufficient cover for home-based businesses.
8. Pests and bugs – termites account for huge repairs costs to New Zealand homes each years, but many insurance companies will not provide cover against pest infestations.
Related links:
The types of insurance that aren’t worth your while
What factors are affecting my life insurance premium?
Insuring your home for a natural disaster