It's no secret that rising insurance premiums are contributing to the cost of living crisis that Australians are currently experiencing. Some of our clients are lucky to receive renewal increases of 10% or less, while other clients are being faced with 40% increases which in some cases makes the policies unaffordable.
But before we look at reducing the sums insured we will always try other tools such as increasing excesses or removing optional coverage that might offer a reduction in premium.
For example, some of our clients who had previously been on the superior Accidental Damage cover have chosen to reduce this to standard Listed Events and keeping money aside to pay for minor incidents around the home that they may have used insurance for in the past.
We're also using higher excesses where the reduction in premium is in our client's best interests as some insurers are offering substantial discounts for excesses as high as $1,500 while other insurers don't offer significant reductions for anything above $1,000.
These tools aren't suitable for all clients but they are some of the ways we're helping our clients remain fully insured for large events without reducing their sums insured. In fact, in most cases we're encouraging clients to increase their sums insured to keep up with the cost of building.
For more tools and resources on calculating the correct sums insured for your property head to this section of our website: https://www.macedonrangesinsurance.com.au/reviewing-sums-insured
This advice is general in nature and you should contact us to obtain personal advice specific to your situation.
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