Premium impact
Have you ever taken a minute to think about what impacts your home insurance? Some home and contents insurance risk factors are obvious, but here are five you may not have considered.
Words: Andrew Rasch
1. Location, location, location
There’s a greater risk of bushfires and floods in particular areas, while some other locations have higher crime rates. Neighbourhoods with higher rates of theft, burglary or other property-related crimes may be seen as higher risk.
2. Construction materials
Older homes may cost more to insure as they could cost more to repair. This may be due to the potential deterioration of the structure, including the roofs and walls, outdated wiring or old plumbing. Older homes that fall short of contemporary building standards may pose issues and homes made from wood or specialised, expensive materials may also cost more to repair.
3. Not so little luxuries
Your property probably looks and feels so much better with some nice-to-have additions, such as pools, sheds, guest houses or large fences. But in the event of a disaster, like a fire, storm or flood, these amenities can be expensive to repair or replace. If you’ve made recent additions to your home, consider reviewing your sum insured.
4. Security measures
Nobody likes being the victim of a crime and security devices such as security cameras and alarm systems have become common in homes and rental properties. These security devices can reduce the risk of theft, burglary and property crime, and potentially reduce premiums.
5. Rebuild costs
Rebuilding costs can affect your home insurance premium. In recent years – especially after the COVID-19 pandemic – building costs have soared, due mainly to inflation and skilled-labour shortages. Larger and multi-storey homes may also cost more to rebuild and might contain more belongings, fixtures and fittings than smaller houses, so they could attract higher premiums.
IMAGE: Getty.
Allianz South Australia Insurance Limited ABN 14 007 872 602 AFSL 232525 (Allianz SA) is the insurer and Royal Automobile Association of South Australia Limited ACN 677 371 274 (RAA) issues this under binder from Allianz SA. RAA do not provide any advice based on any consideration of your objectives, financial situation or needs. Policy terms, conditions, limits, exclusions, and underwriting criteria apply. Before making a decision about this insurance, please consider the Product Disclosure Statement (PDS) and Supplementary PDS (if applicable) available with the Target Market Determination (TMD) at raa.com.au.
Is your home insurance up to date?
RAA Home Insurance for a quote today. Visit raa.com.au/home-insurance or call 8202 4567 for more information.
