The $100 magic question - Insurance rates

[Pa1nter]

Switched PPOR from Suncorp because they insisted on a mandatory building cover increase from $275k to $405k. Which is ridiculous because I built my house 3 years ago and I have the building contract. Even with improvements and inflation, we are looking at $300k maximum. Located in Brisbane, not touched by any floods and not even impacted by Moreton Bay Regional Council 1 in 1000 year flood projections. Suncorp told me that the process to contest this valuation involved sending them a copy of a formal valuation completed in the last 12 months. I didn't have one and I wasn't going to spend a few hundred bucks just to find out. And sure wasn't going to waste my time.

Oh, and my premiums have increased 55% in 2 years. No claims, no floods, nothing.

Cheaper to switch insurance companies. So I called my broker and called St George. Both insurers couldn't believe that Suncorp was enforcing values, they were at pains to tell me that I could pick my own. CGU and St G had the best overall policies, terms and premiums. So went with one of them and saved myself $600 this year.

My mortgage broker told me that they use the insurance calculator here to work this rebuild cost out; http://www.insurancecouncil.com.au/for-consumers/types-of-insurance/home-contents. Sure enough, I plugged my house in and I got around $405k. Man, if I spent $405k on my house, I would have the Taj Mahal. And I don't.

It's called gouging. Now Suncorp will lose both my cars and one of my IP's. I will switch just on principle because I was not treated as the valuable customer that I am. Silly Suncorp.

I had the same problem and after discussing it with a few friends we all agreed that in a large natural disaster such as a flood,most trades were flat out and to build a 200k house would cost twice as much.Remember that the insurance company's handle all the quotes not you,most trades quote the insurance companies twice as much especially when they are very busy,which is why they have such high build costs.

 

[fisherman]

My home and contents was due this week with an amount of $1738 with suncorp.

I rang them and discussed reducing the amount,and ended up saving over $450, new amount $1280

What I did to get that huge amount off

1: I dropped my house from $463K to $436K

2:I dropped my Contents from $82K to $50K

3:I upped my standard excess from $500 to $1000 and dropped my contents excess from $500 to $300(More likely to make a claim here)

4:I cancelled my accidental damage on home and replaced it with Motor burnout as we have 5 a/cs (Still have accidental damage on contents)

I also had my RACQ insurances due $2000 and made a call and reduced that to $1800.(This is for 3 vehicles and caravan),just took the windscreen excess off and increased one vehicles excess.

Pa1ter,

So how did your house insurances come in for a final figure? We are looking at $2,500 - 3,000 premium PA for two storey homes with building valuation around $435,000 and bare contents of $23,000.

$60 PW for house insurance before repairs, maintenance and other overheads!

 

[Pa1nter]

Pa1ter,

So how did your house insurances come in for a final figure? We are looking at $2,500 - 3,000 premium PA for two storey homes with building valuation around $435,000 and bare contents of $23,000.

$60 PW for house insurance before repairs, maintenance and other overheads!

Home and contents with suncorp (With multiple policy's),Home $436K,contents $50K and 2 million liability came in at $1286.
I have motor burnout as additional coverage,
Home excess is 1K
Contents excess $300
Unoccupied excess $K
The break down is Home $953.00 and contents $333.00
Mine is only a single story brick around 6 years old.

 

[fisherman]

Pa1nter,

Thank you. Back to the books I go, something is obviously amiss with our insurance quotes.