Business Insurance Blog

October2016

Insure against bad luck? Yes you can!

We’re all human right? We all have clumsy moments and drop things or become forgetful and lose things. Generally we categorise these moments as bad luck. There is a way to insure against these everyday life accidents, protecting your home and personal belongings – its called Accidental Damage cover. It’s a cover that gives that extra level of insurance protection that you may be missing out on.

In the current market there are two types of home and contents insurance policies which are:
1. Defined events
2. Accidental Damage

Both of these policies offer an extra layer of protection but it’s important to understand what they cover to identify which policy would be most applicable to you.

Defined Events Policy
The type of policy you’ve purchased should always be stated clearly on your insurance paperwork. A Defined Events insurance policy can also go by the name of Listed Events or a Listed Perils Policy. A Defined Events policy will typically limit you to only being able to make a claim for loss or damage caused by:

  • Fire or explosion
  • Lightning
  • Earthquake
  • Theft or attempted the of contents from the home
  • Deliberate or malicious acts
  • Bursting, leaking, discharging or overflowing of fixed basins, shower bases, or other fixed apparatus or fixed pipes used to hold or carry liquid of any kind
  • Fusion of an electric motors less than 15 years old
  • Accidental breakage of fixed glass, hand basins, baths and toilet bowls or cisterns
  • Riot and civil commotion
  • Impact by a vehicle, aircraft, falling tree, anima, television or radio aerial or falling power or communication poles
  • Storm cyclone, hurricane and rainwater
  • Flood

Overall a Defined Events Policy is good but it doesn’t offer cover for those everyday bad luck moments.

Accidental Damage Policy
In comparison to a Defined Events policy, an Accidental Damage policy will cover the same events but it goes above and beyond by covering you for damage to your building and contents that is caused by an accident. So:
• If you accidentally drop and break personal items (at home or away from home)
• If you accidentally leave or lose any personal items (at home or away from home)
• If you accidentally damage your carpets, walls or parts of your building

If you want to be covered for all of the above then Accidental Damage is the cover you require

Summary
So just to recap, both the Defined Events and Accidental Damage policies will cover your Building and Contents for the events listed in the Product Disclosure Statement. However the Accidental Damage policy is superior in its coverage and provides accidental damage to your building and contents in your home and to top it off – worldwide cover for loss or damage to your personal items.
As with all insurance policies, limits and maximum values may apply. An Accidental Damage policy will generally have higher limits than that of a Defined Events policy.
If you want to know more about upgrading to an Accidental Damage policy or if you’re not sure what type of policy you have in place, please feel to call us on 1300 167 143.