Why do we take out Insurance?

By Peter Vickers Insurance Brokers | Insurance Case Study, insurance |

Are all insurance policies equal?

What is the value in paying premiums year after year? Simply put it is our investment in future proofing, as we don’t know what the future can bring we insure ourselves, homes, cars, businesses against some event that could possibly turn our world around in the worst case or inconvenience us in the best.

But there’s insurance and then there is insurance.

This is the story of why cheaper isn’t always better.

An acquaintance purchased home insurance through an online service at very attractive premium and for a few years this worked in their favour keeping costs down but still having the security of being insured.

Then it rained, and not just rain it was like once in a 100 years torrential rain that soaked our city, our roads and homes for days, with creeks and rivers rising cutting off communities, bring down trees and ultimately springing leaks in roofs, flooding downpipes and drains which then found its way into the floors of our homes.

With floors now in need of repair, they went to their insurance company to make a claim, this resulted in weeks of waiting and follow up, eventually an assessor came out and assessed the claim and agreed to fix the floors - it all looked rosy.

But when the repairers came in to sand and stain the wooden floors they could only fix exactly what was in their report which had left out one plank, a plank that was slightly cupped throwing the floor slightly off. They stained the floor with a matte finish when the rest of the floors were stained in a satin sheen finish. It is very easy to see the difference when the two stains meet in the hallway – on one side repaired with matte and on the other side original satin sheen - neither side matching.

To add insult to injury the repairers had also used the wrong grade of sandpaper/technique when sanding the floors so there are now circles like the rings of Saturn all over the repaired flooring.

In the insurers mind the repair is done and the claim is complete, they are uninterested in fixing the shoddy work of their repairer they have moved on.

This is the difference with cheap insurance there is always a cost cut to give you a better premium and in this case it was the cost of customer service.

Moral of the story – when you are considering insurance and one premium against another understand that cheaper premiums have hidden costs, some you don’t find out about until you need to claim.

Want to know how to protect yourself and your business with the right insurance talk to the team at Peter Vickers Insurance Brokers on 1300 784 011

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Lindfield NSW 2070
T: 1300 784 011
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