January 14, 2015
Home Insurance Key Fact Sheets became mandatory in November 2014 but the insurance industry has really done little to promote them – why? – because they are a consumer benefit that the industry has to pay for !
These key fact sheets should provide a simple, clear and brief explanation of what is and what is not covered by your home insurance.
The object of these changes was to prevent homeowners thinking that they are covered for something when they are, in fact, not. The key fact sheet is meant to spell out in clear and simple language the most important features of your policy. It has also standardised the way that Insurers treat certain occurrences such as floods – which caused so much confusion after several disastrous weather events over the past 2/3 years.
The Insurance Council of Australia says that insurers must now provide these if you are taking out a policy BUT you must request one if you are just making an enquiry (this part seems to defeat the object, in my opinion).
The key fact sheet should summarise the cover given for certain major events together with any exclusions. This is an example supplied by Suncorp:
As usual, you really do need to read the relevant sections of the product disclosure statement if you are in any doubt about the detail of your policy but these "at a glance" sheets are very useful for giving that high level view.