Home Insurance - The Difference in Value

phancy on 05/01/2024 - 17:29
Last edited 05/01/2024 - 17:32

Hey All.

Im taking out home insurance and looking at quotes. $400,000 Cover + $3,000 Excess.

Most insurances are coming back at $2,000+, however Coles Home Insurance goes for $900.

Am I missing something? How can Coles provide similar insurance cover at less than half the price? Im not an expert in insurance, but im taking the assumption that the cover is reasonably the same across big insurer and big resellers. I understand that the difference is in the PDS, but are there some key examples to look out for? Stories from friends where the buyer thought a situation would be obviously covered, but it ended up not?

Anyways, im pretty inexperienced in this space… any info and opinions welcome :) Cheers.

Financial Home Insurance Insurance

Comments

  • Muzeeb on 05/01/2024 - 17:33
    +4

    Compare the fine details ie. Do they both offer flood coverage?

    • netjock on 05/01/2024 - 22:13
      +1

      Usually flood coverage. I checked flood maps before I buy properties. I'm paying approx $500 pa due to no flood cover. Would be $1k more with flood cover.

      On farms flood cover could make $8k difference to the premium.

      OP needs to know their risk profile and whether what is not included is something they want.

      • lgacb08 on 12/01/2024 - 17:34

        Not quite, flood usually not covered by default in area within flood zone and almost always there's a tick box to add this cover. The major difference between those default policies is accidental damage, which doesn't come with the cheaper one.

  • DashCam AKA Rolts on 05/01/2024 - 18:15
    +1

    Check excess to be paid in case of a claim.
    Any major exclusions?
    Liability cover?
    Caps on contents items?
    Coverage on items when away from place of residence?

    • Muzeeb on 05/01/2024 - 18:26
      +2

      These could save cents. Cheers

  • freefall101 on 05/01/2024 - 18:16
    +1

    Just read the PDS for each one, don't rely on internet stories.

    Major thing is flood and that you've provided the exact same details to get the quote, but basically read through what is covered and what isn't, it's pretty clear.

  • Benoffie on 05/01/2024 - 18:45
    +2

    Thats expensive for that amount of coverage.

    With RAA in SA I have $500k house, $200k contents

    Annual premium is $1952 with $700/300 excess.

    They are a premium insurer. Everything is included. Hope that gives you a ballpark.

  • Ocker on 05/01/2024 - 19:20
    +1

    Same variations for car insurance.
    Changing from my MB to a BMW and the quotes have ranged for $1,000 to $4,000 for the exact same cover.

  • AndyC1 on 05/01/2024 - 19:56
    +1

    Differences could be:
    1) Flood damage
    2) Coverage w.r.t. - buffer
    3) New for old replacement
    4) Who organizes and does the 'replacement" (who chooses what)
    5) what they cover in addition to a full demo - aka motor burnout, water damage wear and tear etc etc etc . aka read the docs etc

  • knasty on 05/01/2024 - 20:04
    +2

    Different underwriters have different assessments of risk. Some can be 3 times as much for the same cover.

    Play around with the excess too. Increasing the excess can dramatically lower the premium. I haven't claimed in 20 years so makes sense to have a higher excess for lower premium.

    • netjock on 05/01/2024 - 22:14
      +1

      Sometimes insurers will increase premiums to show they don't really want the business.

  • phancy on 06/01/2024 - 08:20

    Thanks everyone , great info for me to consider so far

    • Doboman on 09/01/2024 - 15:19

      I never do cheap insurance, everything else is I do cheap :).
      I look at their claim rates and how may claims are rejected & stick with a premium one so less trouble

  • rickb on 09/01/2024 - 15:36

    I took out Coles home and contents insurance in 2022. The cost increased by 110% for the renewal in 2023. No previous claims. Might be a case of getting you in with a cheaper quote and hoping you will stay with them.

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