Nuff Nuff

Thursday, November 12, 2009

Do you own any assets?

If you answer yes to any other to following questions – You SHOULD have insurance.

1. Do you own a car? Yes/No
2. Do you own a TV? Yes/No
3. Do you own Property? Yes/No
4. Do you rent a property Yes/No
5. Do you own a computer? Yes/No
6. Do you own a motorcycle? Yes/No

If you answered yes to ANY Of these questions – then you should have insurance.

If you answered yes to 1 or 6 – you should have full comprehensive vehicle insurance – let me tell you why – If you have an accident, then you are covered for replacement vehicle (at market cost) all damage is covered, even of the other driver doesn’t have insurance. No court problems, no out of pocket expenses, only the excess. If you ONLY had 3rd party fire and theft. You would have to pay for a replacement vehicle AND if you have a loan for the vehicle, not only will you have cost of the loan, but the cost of buying a new car!

If you answered yes at 2,4,5 – then you should have contents insurance (unless you are still at home with mum and dad). If (let’s cross our fingers, there is not) that you have a building fire. Regardless of what happens, you pay 50% of the cost of the fire brigade turnout and also the standby costs. Not a pretty thing even if you are employed. Last I heard $1500.00 per QUARTER hour PER truck. - Can you honestly afford that?

If you answered yes at 3 – then you should have building insurance, again if there is a building fire. You have to pay 50% of the fire brigade turn-out costs.

The NSW bushfires of 2001/2002 – 31% of buildings were NOT insured and the rate was far higher for contents. This is mostly due to a misconception that the owner of the property takes out contents insurance also. THIS IS NOT THE case.

Also under-insurance is a big problem. The cost of rebuilding is NOT the cost to purchase the property, nor the cost of just re-building per square foot, you must also include site clearance etc, which is a genuine cost of re-building.

Assess your building and contents on a yearly basis, make it a habit to check the CPI rate and also if you have added new assets/renovated your house in the past year.

Vehicle insurance, make sure you are covered for new for old for the first 12 months of a brand new car. Check the policy costs and added benefits and compare the best value BEFORE committing.

Insurance saves a lot of heart-ache – remember that! 


Maralyn said...

Just checked with my insurance company and they say this is not so. You do not get a bill from the fire bridgade to put out a house fire. Different story if it is a false alarm, they may charge but often do not. Also they may charge if fire caused by storage of hazardous materials. There is no charge even if you do not have insurance. This was verified by a senior Fire Brigade official during this conversation

It ain't so (most of the time) said...

maralyn - I have to disagree - I've just looked at the Fire Brigades Act and point:-
66 Payment of expenses where property uninsured
s. 66
(1) The owner of any uninsured property situate within the metropolitan district which is damaged or destroyed by fire shall be liable to pay to the Board the reasonable costs and expenses incurred by the Board in providing fire fighting services for him in relation to that property.
(2) The amount payable under subsection (1) shall be determined by the Board.
(3) Notice of the amount so determined shall be sent by post to the owner concerned.
(4) The amount specified in the notice shall be payable to the Board by the owner within 28 days after receipt of the notice.

Clearly states that a payment IS to be made to relevant authority (in this case the MFB) within 28 days of a bill being issued IF no inusrance is held.

Hope that clarifies the siutation for you

here is the link MFB Act

Yvonne R Thompson said...

I was billed $3500 by MFESB for "false alarm" when a tenant left a frying pan with steak cooking while she went to have a shower with her boyfriend. The smoke triggered alarms and building evacuation. Landlords insurance did not cover it. I finally settled with MFB for $1800 after many letters objecting that this was a kitchen fire and not a false alarm. Beware.

It ain't so (most of the time) said...

Thanks Yvonne for the comment - That is exactly what I'm talking about. The false alarm charging (prior to 1990) no charges were applicable for false alrams, but about 1990 charging for flase alarms was instigated to try and deter and prevent the call-outs. That is one side of the whole admin side of things.
People need to be aware of the cost of call-outs to brigades (both real an false) and that they can be insured against. People either think it won;t happen to them OR someone else is responsible for the insurance. That is not the case most of the time s you have found out the hard way.
Thanks for the input - greatly appreciated!

Yvonne R Thompson said...

People need to be VERY careful also about taking at face value advice from insurance companies. There are a lot of grey areas so always there needs to be due diligence on your part pertaining to your own circumstances. Explain carefully abd ask a lot of questions, and carefully record the insurance companies answers.You can bet that they are recording the information and advice and will certainly use this if a 'he said-she said' dispute develops.

It ain't so (most of the time) said...

There are some VERY good insurance policies out there. After the fires went through - Some policies were found to cater for vet fees for injured animals, and 25% built-in coverage IF you were under-insured. Others would ONLY psy out IF you rebuilt and ONLY to a set value. There were many variables, some Very good, some good and some VERY bad :(
Many a lesson was learnt the hard way by residents in one small town. I can't vouch for other areas.
Thanks again for the comments Yvonne - your input and views are appreciated!

Heather said...
This comment has been removed by the author.
Heather said...

Updated link in regards to payment for MFB to attend your property IF your are uninsured for any portion

MFB Act Refreshed link