Presentation Summary
Annabelle clarifies she is an independent insurance expert, not providing advice.
She discusses increasing natural disaster intensity due to climate change, urban expansion into high-risk areas, and rising insurance premiums.
The presenter explains different insurance buying options: direct insurers, brokers (open market vs. authorized representatives) underwriters and underwriting agencies.
The discussion covers types of advice (factual, general, personal) and pre-contractual duties (duty not to misrepresent vs. duty of disclosure).
Insurance pricing is influenced by individual risk-based pricing, reinsurance costs, and claim expenses.
Home insurance policies vary, including sum insured and complete replacement policies, with additional considerations like temporary accommodation and debris removal.
For small businesses operating from home, insurers must be consulted.
Farm insurance differentiates between production farms and hobby farms, impacting coverage.
Lastly, sum insured calculations often rely on insurer-provided tools during underwriting.
Presentation Summary
Peter Gartlan, co-CEO of Financial Counselling Australia, and Denis Nelthorpe, a consumer lawyer with extensive experience in insurance advocacy, provide insights on insurance from a consumer’s perspective before a disaster.
They emphasize the importance of understanding insurance policies, particularly sum insured versus replacement cover. Many homeowners underestimate rebuilding costs, especially in areas with Bushfire Attack Level (BAL) requirements, which can significantly increase costs.
Key advice includes:
They stress that underinsurance is a major issue, particularly after disasters, and encourage proactive conversations with neighbors, financial counselors, and insurers to ensure appropriate coverage.
The panel highlighted a crucial point. Don’t just assume you're covered. Know your policy inside out.
Understand what you’re insuring, listing your assets, and checking if emergency accommodation and debris removal is included or an added cost to your sum insured policy.
It was emphasized that many people only read their insurance policy after a disaster, which is far too late, especially when complex factors like BAL (Bushfire Attack Level) ratings can significantly impact rebuild costs.
Viewers were encouraged to adopt community collaboration such as jointly hiring a consultant for property assessments.
Discussions also touched on mitigation measures like bushfire sprinklers and whether they can lower premiums. While some insurers may consider it, it’s inconsistent across the industry and using a broker may help.
New tools like the Resilient Building Council’s bushfire risk app are a promising step forward.
Practical advice included photographing your home's contents and features, like water tanks and fencing, as proof of ownership. This helps smooth claims and prevents errors under stress.
The panel also addressed trickier areas like fencing disputes and underinsurance risks.
Be proactive, ask questions, compare policies, and document everything, because when disaster strikes, preparation makes all the difference.
