I took content insurance from an insurance provider last year, and am due for renewal now. I would like to revisit and fine tune it? The initial trigger was, one of my friends had issues with the laptop, and he got it covered by paying $500 excess for the $2500 laptop. I am covering all the contents.
Is it worth covering all the content? Should I cover the ones which are not under warranty to reduce the premium? What recommendations Ozbargainers have ?
how often would you be claiming for insurance? and if you claim something, your premium will increase next year. So think about it if it's worth customising everything, because itemising contents will trigger incremental increase in premium
how often would you be claiming for insurance?
whenever you need to…
your premium will increase next year.
no always.
Should I cover the ones which are not under warranty
a few ways to approach it, you might be able to still claim warranty by badgering the manufacturer under ACL (like many suggests to do here all the time)
if its a tech item, a $2000 camera you paid 10 years ago, its probably now, 2nd hand flat out getting you $500. Also consider how much the total agreed value is in the proposal.
There are two ways of looking at it. One at the individual item level and the overall content insurance. Individual item level, many may not make sense. However, at a broader content, it might make sense paying some premium
if its a tech item, a $2000 camera you paid 10 years ago, its probably now, 2nd hand flat out getting you $500.
It completely depends on which cover you purchase - so review the PDS before selecting.
Some do cover the cost to replace your item with a brand new equivalent (“new for old”).
So while your particular camera cost $2000 ten years ago, and may only be worth $500 if it was sold as is (before making a claim, that is), the cost to purchase a new replacement camera with similar specs may actually be $1200. This is because camera tech moves quickly.
However, if you bought something like a leather couch where the tech doesn’t advance much, and spent $5000 on it five years ago, and now it’s considered worth $2000 because it’s old, they will still replace it with a $5000 new leather couch. (AAMI example in their PDS)
What I did was go around the house room by room, and note everything down in an excel sheet (including things like curtains, carpet, furniture) Then i would note if i had the receipt and purchase price
You’d be surprised how quickly that figure went up
Now imagine if you had a fire, how much it would cost to replace
Good strategy and disciplined approach.
Warranty and insurance are two different beasts. Warranty will cover in the event a product stops working but won't cover generally for theft or if the item is destroyed. I guess the question you need to ask is whether you're in the position to replace your items yourself if they're stolen, or destroyed in a fire. My son was broken into and it's amazing how quickly the cost of even small things added up.
True. Makes sense. Good distinction to keep in mind
Check your PDS… there's a section on overall sum insured and portable contents cover.