IMPORTANT! House and Contents Insurance - Please Read

[Jaycee]

I just wanted to let you all know that I have recently cancelled my insurance with REAL Insurance due to a clause in their PDS (Product disclosure statement)
There was a clause in the PDS which stated that if the house was to catch fire and the was caused by a heat resistant appliance such as a dryer, stove, heater etc that the whole of the insurance would be void - not a cent would be paid!
Thank goodness I read it (after having the insurance for a whole year!) and luckily not needing to make any claims.
I am now with AAMI who have no such clause, I'm not sure if there are other insurance companies out there with this clause, but I thought I'd just let you all know.
PLEASE PLEASE PLEASE read the booklet that they send with your certificate and make sure you are covered for such a disaster, it would be awful if this happened to someone and they though they were covered, I know I did!
Janine

[Lulu]

OMG, so what would they cover for - spontaneous human combustion?????

[Cassius2]

OMG, so what would they cover for - spontaneous human combustion?????

oh that is funny!

hmmm, must do my checks. man i hate insurance...more apt name would be "frikkin expensive cover for poxy discount if it all goes wrong"...but i guess it just doesnt flow as nicely as plain old 'insurance'.

[Inertia]

Woah. Thanks for the heads up. I just took out contents with Real a short while ago. TBH we were more thinking about theft, but that is worth knowing. Thanks.

[Jaycee]

Inertia, please reconsider your insurance with Real, they may be cheap and offer you cash back after 3 years, but there's a reason for that...stupid clauses like this that will catch you out when you most need it!

LMAO Lulu, that's exactly what I thought!

[MaryB]

Hey ladies! I work in insurance so let me tell you something... every insurance company has clauses that can void your policy. It's just how it works. It really doesn't matter which company you're with - you have to read the small print. I bet you that just because AAMI doesn't have this clause, they have a dozen others that you haven't thought of... I just had a look at Real's PDS and it's easy to read so you know what you're getting when you buy it. I was previously with NRMA. Try reading theirs! Good luck figuring out what you're covered for... it's so complicated! Bottom line, do what's right for you at the right price, but take the time to read the small print. All companies are required by law to put their Product Disclosures on their websites.

[Bathsheba]

Yep, I am a lover of reading fine print... you discover the most amazing things hidden away there!

Be wary of cheap insurance policies. I'd stick to the bigger companies to be honest. We've been with CGU for 15 years with our contents insurance and have been very happy with them.

[Jaycee]

Maryb, I am sure many insurance companies have different clauses, but this one really stuck out!
If a fire broke out in a house, chances are that it was caused by a stove, heater, dryer etc.
It would be awful to think you were covered only to find out you're not!
AAMI and many others I have researched do not have this clause, I was just making it clear for others as well incase they thought they were covered.