Why you should consider using a broker for home insurance
A recent report from the Actuaries Institute suggests that 1.6 million Australian households are now experiencing insurance affordability stress, a 30 per cent increase from the previous year.
According to the report, Australian households are spending an average of 9.6 weeks of their gross income on home insurance, significantly above the national average. The percentage of households in affordability stress – those paying premiums that exceed one month’s gross income – has increased to 15% by March 2024, up from 12% the previous year.
Factors contributing to this trend include:
- Rising rebuilding costs: The increasing cost of materials and labour for repairing and/or rebuilding homes following claim plays a significant role in escalating premiums.
- Properties in high-risk areas: for instance, areas prone to bushfire, floods and cyclones.
Property owners shouldn’t forego home insurance and many mortgage providers stipulate insurance as a condition of getting finance anyway.
With this in mind, now might be the time to shop around for a more cost-effective premium; indeed, according to recent Canstar research, homeowners in NSW could save an average of $644, per year simply by switching their home insurance provider.
Benefits of using a broker
There are plenty of online home insurance comparison websites, but homeowners may consider using a broker. Benefits include:
- Save you time: Brokers do the work for you! They have access to a wide range of insurers and can compare policies tailored for your particular property. This broad network allows them to find you competitive options that you may not discover on your own.
- Personalised service: The tailored advice is based on your specific circumstances, helping you find coverage that suits your individual needs and budget. In addition, a good broker will assess and explain your property’s risks and recommend suitable policies. They can also offer options to reduce your premium, such as changing your excess and considering what extras you’d like included.
- Expertise and knowledge: Experienced brokers can help you evaluate your some insured and understand the nuances of the insurance market, including terms and conditions that can be difficult to decipher. This knowledge can help you avoid common pitfalls and ensure you choose the right coverage.
- Support during claims: In the event of a claim, being able to speak to a person to guide you through the process can significantly reduce stress at a challenging time. In addition, brokers provide invaluable support by advocating on your behalf with the insurance company.
- Ongoing relationship: A broker doesn’t just set you up with a policy; they can continually review your insurance needs as your circumstances change, ensuring you always have the best protection possible.
How to find a good broker
Here are some tips to help you find a good broker:
- Check qualifications: Ensure that the broker is licensed and qualified under the Australian Financial Services License (AFSL) regulations. You can check their credentials on the Australian Securities and Investments Commission (ASIC) website.
- Referrals: Ask friends, family, or colleagues for recommendations. Personal experiences can provide valuable insights into a broker’s reliability and service quality.
- Reviews and testimonials: Look for online reviews and testimonials to gauge the experiences of other clients. Websites like Google Reviews and industry-specific forums can be helpful.
- Assess their specialisation: Some brokers specialise in certain types of insurance or particular regions. Choose one with experience in home insurance and knowledge of your specific locality, particularly if you’re in a high-risk area.
- Good communication: A good broker should communicate effectively and be willing to explain complex terms in a way that is easy to understand. They should be responsive to your questions and concerns.
As well as securing appropriate insurance and an affordable price, a trusted broker will give you peace of mind your property is covered should the unexpected happen. And don’t forget, if you’ve sold your home, you’ll need to cancel that home insurance on the day you settle.
When it comes to insuring your new home, this should be done as soon as you and the seller sign the contract of sale.
We pride ourselves on doing more than selling and managing properties; we give extra tips and hints to help property owners potentially save many as well as make informed decisions.
If you are thinking of selling, or want to know what your house could get in today’s market, contact us for a free, independent and non-obligatory quote. Our experienced team will also suggest quick and cost-effective upgrades to consider making so you can get the best price for your property.
Drop into our Cardiff office, give us a call on 02 4954 8833 or send us an email to: mail@apnewcastle.com.au.
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