Insurance Broker Recommendation - Melbourne

[Lawry]

Hi, just had a bldg & contents renewal quote for our PPOR; a +29% increase on last year Did a quick online quote with another insurer and got a quote for 60% less. Complained to original insurer (who we've been with for 11 years) - they dropped their quote (surprise surprise) but still 40% more than online quote.

This happened last year with car insurance - rang aruond and got a better quote, cancelled the original cover and they rang and offered to match the other quote. told them they shouldn't have bumped it up in the first place.

Just wondering if there are any bldg & contents insurance brokers anyone would recommended in Melbourne that would save me the effort of getting numerous quotes - usually brokers have an idea of which provider is best for a given situation..? thanks in advance.

 

[Peter_Tersteeg]

I generally recommend White Insurrance Brokers 03 8790 5701. They do most of my insurances.

A lot of the online quotes are going to be cheaper, but you also need to consider what you're getting. I don't know about home/contents insurance, but if you look at life insurance, etc, you'll find that the tick and flick applications do their underwritting at claim, whereas the wholesale products you purchase through planners and brokers do the underwritting upfront.

This means that they only determine things like exclusions when you make the claim, not when you make the application. This can make a huge difference in the outcome if you need the insurance.

 

[buzzlightyear]

Have to also confirm the large increases I have found for building insurance (not contents). These have been in the vicinity of 20-30% and this is consistent for all insurers as I have had quotes across 4 of them!

Maybe its the carbon tax

I used a broker, but their options were not anything particularly better. In the end, my ultimate choice allowed me to pay monthly instead of forking out $1250 up front...

And that doesn't include the fact that I had under-insured so needed to increase coverage which also added to the cost, independent of the 20-30% increase....

 

[Aaron_C]

How did you underinsure? Most 'replacement value' insurance for mortgagee purposes is excessive imo.

 

[buzzlightyear]

How did you underinsure? Most 'replacement value' insurance for mortgagee purposes is excessive imo.

For 'building' you can, given you have to nominate a cost to be insured....

 

[Aaron_C]

For 'building' you can, given you have to nominate a cost to be insured....

Yes but what I meant was for any mortgage the bank will require you to insure at least the 'replacement value' figure in the valuation report. Normally this is much more than enough to cover any damage so I am a bit confused when you say you are underinsured for building insurance.

 

[buzzlightyear]

Yes but what I meant was for any mortgage the bank will require you to insure at least the 'replacement value' figure in the valuation report. Normally this is much more than enough to cover any damage so I am a bit confused when you say you are underinsured for building insurance.

Got to say, I have never been told, informed or instructed of replacement value in any valuation.

 

[Aaron_C]

Got to say, I have never been told, informed or instructed of replacement value in any valuation.

Well usually the bank's solicitors will tell you to insure the property for $X and this $X is derived straight from the valuation.

 

[buzzlightyear]

Well usually the bank's solicitors will tell you to insure the property for $X and this $X is derived straight from the valuation.

Ok, but fast forward 5 years, the bank are not telling you what you need to insure the building for.

 

[Aaron_C]

Ok, but fast forward 5 years, the bank are not telling you what you need to insure the building for.

Yes if it's been a while since you mortgaged your property it is very plausible that you are underinsured now if you've done new renovations or made improvements etc.

 

[Lawry]

I generally recommend White Insurrance Brokers 03 8790 5701. They do most of my insurances.

Thanks Pete, I will follow up with the broker you've recommended. Agree wth your comments about the pitfalls of online quotes, one of the reasons I think a broker would be useful.

I know insurance costs have increased, it just seems sometimes like the insurers are relying on their client's laziness to just re-sign without questioning or shopping around, instead of looking after their existing clients.