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Top ten insurance questions
- My insurance company did not send me a renewal for my policy. What can
I do now that we have a burst pipe that has caused damage to our carpet?
Under the law your insurance continues under the same conditions. However,
the insurance company may have evidence that the renewal was in fact sent,
so make sure you didn't just forget to reinsure. Check out our fact sheets
on settling insurance disputes if the insurer does not come to the party.
- Why should I tell my insurance company about something that has happened
to me in the last twelve months, even if it increases their risk, if they
do not ask it on the policy?
This will be part of your insurance policy. Sometimes the question is specifically
asked e.g. whether you have modified your car in the last twelve months. If
the question is not asked, and it is something you wish to keep confidential,
you should get legal advice before the policy expires. Remember, if you do
not disclose a material fact the insurance company may be able to avoid paying
on a claim, so make sure you get advice.
- We suffered loss because of an accidental breakage in our house. The
event is covered by the policy, but the damage was caused by one of my son's
friends. Are we covered?
It depends on what the policy states. For instance, it is generally accepted
that losses are covered if the damage is caused by family members living permanently
in the house. To check out this situation ring the insurance company or your
broker, read the policy carefully, and if the loss is significant and you
are still not covered, you might want to seek legal advice.
- Is it possible to get insurance for my gardener? Can I add it to my home
insurance?
Yes. You should get in touch with your insurance company or your broker and
see what can be done. It is always a good idea to ensure that people working
on your property are covered for accidents and other losses. However, first
find out what sort of insurance the gardener carries.
- Will the insurer check all the details of my application for car insurance?
If not I might be able to hide the fact that I have had three accidents, all
my fault, in the last year.
In fact the insurer may not check the accuracy
of the information you give, but it may mean that when you make a claim it
will be refused. In other words, there is every possibility that the information
will be checked at the time you make a claim, and therefore a serious possibility
that payment will be legally rejected.
- Should I review my level of home insurance?
Yes, you should do this on a regular basis, especially with regard to the
market value of the house.
- My car insurance application asks whether I have any traffic offences
in the last five years. Surely they are not interested in my speeding fine
last year?
You should declare any traffic offence, no matter how innocuous. If you do
not do this there may be grounds to refuse a claim in the future. Better to
be safe than sorry.
- I think I paid too much for my insurance. Can I complain to the IEC?
No, the IEC does not deal with these types of disputes.
- I got a favourable decision from the Insurance Enquiries And Complaints.
However it took months from the time my original claim was rejected, and in
the meantime I have had to rent furniture. Can I claim those expenses?
No. Unfortunately for you the IEC can only order interest be paid on the amount
of the claim due to the delay.
- Do I have to pay the insurer if I lose at the Insurance Enquiries And
Complaints?
No. This is one of the big advantages of the dispute resolution scheme.
Read this: This fact sheet is intended to be general information
about the law in Australia. It is not a substitute for legal or other professional
advice. LAwscape Communications Pty Ltd, Fairfax Interactive Pty Ltd or MoneyManager
does not accept responsibility for loss to any person, who either acts or does
not act because of this fact sheet.
(c) Lawscape Communications P/L
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Each week financial advisor Noel Whittaker answers your
questions.
