Understanding Your Coverage
Overview
An insurance policy is a contract that sets out exactly what is covered, what is not, how much we will pay, and what you are responsible for. Understanding the key terms helps you make informed decisions about your cover and respond quickly if you need to claim. This guide defines the main concepts, explains how to read your policy schedule, and gives you practical examples.
Key Concepts
- Sum insured -The maximum amount we will pay for a covered event. Setting this correctly is critical; too low and you may be underinsured, too high and you pay more than you need.
- Deductible or excess -The amount you pay out of pocket before our contribution starts. A higher deductible typically lowers your premium.
- Premium -The amount you pay for cover, usually expressed annually and payable in a single payment or instalments.
- Policy period -The dates during which your policy is active. Claims are assessed against the cover in force at the time of the event.
- Insured event -An event listed in your policy that triggers cover, such as accidental damage, theft, fire, or storm.
- Exclusion -An event or circumstance that is not covered. Common exclusions include wear and tear, intentional damage, and certain named risks.
- Endorsement -A change to your policy wording that adds, removes, or modifies cover, often in exchange for a change in premium.
Reading Your Policy Schedule
Your schedule, issued each time you buy or renew, summarises your cover on a single page:
- Policyholder and insured assets -Your name, address, and what is covered.
- Coverage type -For example Home & Contents, Motor Vehicle, Health, Life, Travel.
- Sum insured -Listed per category, such as building, contents, or vehicle market value.
- Deductible -Listed per event type where applicable.
- Optional covers -Such as accidental damage, legal expenses, or breakdown assistance.
- Endorsements -Any specific changes made to your policy wording.
The full policy wording is a longer document referenced on the schedule. Read both together to get the complete picture.
Limits, Sub-Limits, and Co-Insurance
- Overall limit -The total we will pay for all claims under a policy section.
- Sub-limit -A smaller cap that applies to specific items or categories. For example, a home contents policy may have a sub-limit for jewellery or electronics.
- Co-insurance -In some products, you share a percentage of the loss with us above the deductible. This typically applies to health and commercial policies.
Frequently Asked Questions
Q: What is the difference between "sum insured" and "market value"?
Sum insured is the maximum amount we will pay. Market value is what the asset is worth on the open market at the time of loss. For some products, the settlement is the lower of the two.
Q: Are all storms and floods covered?
Cover varies by product and region. Storm cover is standard in most home and motor policies. Flood may be an optional extra. Check your schedule or ask us during Mon-Fri 8:30 AM - 5:00 PM AEST.
Q: What happens if I am underinsured?
If your sum insured is below the actual replacement cost, the settlement may be reduced proportionally. This is known as the "average" or "underinsurance" clause. Review your sum insured at each renewal.
Q: Can I add someone else to my policy?
Yes. You can add additional drivers, beneficiaries, or insured parties through the app, portal, or by calling us. Rating may change accordingly.
Important Information
Our policies and product disclosure are issued in accordance with regulations enforced by Australian Prudential Regulation Authority (APRA). For unresolved concerns, Australian Financial Complaints Authority (AFCA) provides free, independent dispute resolution.
Need Help?
Our support team is available during Mon-Fri 8:30 AM - 5:00 PM AEST. For life-threatening emergencies, always call 000 first.