Exmouth and Moora, both in Western Australia, don’t share much in common with Sydney.
This year, however, there is a unifying bond. We all felt the full force Mother Nature.
Flooding in Moora, a Wheatbelt community, caused damage of approximately $10 million to homes and properties. The community suffered millions of dollars more when Cyclone Vance struck Exmouth, North West of the State. Sydney’s hailstorm bill is now at $1 billion.
This is all to remind you that insurance can help protect your assets against acts of nature beyond our control.
Insurance is one such intangible thing. You pay the money, but never receive anything tangible back – except in the case of misfortune.
Insurance companies spend millions advertising to promote their reputation as fair and trustworthy. They are marketing the benefits of speed and ease in making claims, as well as trustworthiness when it is time to pay claims.
Banks are becoming more sensitive to natural disasters. Customers who were severely affected by the Sydney hailstorm have been offered special assistance by Westpac. Customers who have home loans can now request to suspend their repayments for up three months. Credit card payments may also be deferred for one month.
You need to do your research when looking for the best insurance options. Here are 10 things to consider when you’re looking into insurance for your hard-earned wealth.
- Get insurance with a reputable company. All licensed companies must comply with the Insurance Act 1973. This is overseen by the Australian Prudential Regulation Authority. Their job is to ensure that companies are able to pay future claims. For an independent decision, an insurer may refer a dispute to a domestic claimant.
- Get to know your neighbors and friends. Make a claim. Natural disasters are a quick way for word of mouth to spread quickly. Find out the attitude of the company when it comes time to paying out. Insurance companies must perform when the chips are down in Exmouth, Moora, and Sydney.
- Make sure you have adequate insurance. Do not try to save money and then find out that you are underinsured.
- Value your assets annually. Houses appreciate, and cars depreciate. Keep the amount insured at the current value.
- Protect all your assets. You should ensure that you have insurance that covers all of your personal assets.
- Find out the speed at which claims are paid. A faster payment means that life is back to normal. Any delays in getting paid will result in you being out of pocket due to the time value of money.
- Browse around. There is a wide range of products available. You can shop around to find the right policy for you – from a value perspective, based on premiums and coverage.
- Pay attention to the details. Ask questions to make sure you understand what you are covered and are not.
- Keep your policy safe. Create a system to keep track of where your policy is at all times. It is amazing how frustrating it can become to search for important documents that have been lost during times of crisis.
- Get help. A professional insurance broker can offer advice and other options.
These tips will help you feel calm and protected next time a natural catastrophe strikes your home.
Thomas Murrell MBA CSP, is an international business speaker and consultant. He has also been awarded with the prestigious Broadcasting Award. His electronic magazine Media Motivators is read by over 7,000 professionals from 15 countries.
