Question on Test for Under Insurance on a Business Pack Policy

The question today was: ———————————————————– Good Morning Allan, We would appreciate your interpretation as follows. Refer attached Sunrise schedule with the sum insured & limit of liability clause a [cluster group] BPK wording. Building Sum Insured/Declared Value (page x)                    $8,440,000 20% Extra Limit of Liability (page x+1)                                     $10,128,000 […]

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Should “No Frills” Home Policies Still Provide Full Protection in the Event of a Major Loss?

This is a question I have been asking myself my and more as I check wordings for people when they ask me if their particular home policy is okay when they hear what I do. I typically go to LMI’s PolicyComparison.com on my iPhone, iPad or laptop. Most times I point out areas that are of concern such as very low limits for removal of debris, loss […]

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Limits of Liability v Sub-Limits of Liability v Schedule of Declared Values

I was recently appointed by the Chief Financial Officer of a company to cast a fresh pair of eyes over their insurance program. As I was going through the Industrial Special Risks (“ISR”) schedule I noticed a number of issues that needed to be remedied. Without wishing to embarrass anyone, I will discuss a few of these over the next few posts, particularly those that […]

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Disappointing News Following NSW Bushfires

The recent article in the Sydney Morning Herald about the delays in home owners having their debris removed,  is yet another example of why home owners should not rely on either charity or government to bail them out in the event of a loss. I understand that over 200 homes were destroyed and $3 million was kindly raised by charities. That equates to $15,000 per […]

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Is $10,000 combined limit for debris removal and architect’s fees providing genuine protection to home owners?

Back in July I wrote an article expressing concern that some of the supermarket badged wordings around the coverage for flood. http://www.allanmanning.com/when-is-flood-insurance-not-flood-insurance/ With the bushfires in New South Wales and elsewhere I revisited the wordings to look at some of the key benefits provided by home and contents policies in Australia. Having only a few days ago written an article on removal of debris (refer […]

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Removal of Debris

For my milestone 400th post in this blog, I thought I would  choose one of the most popular Google searches that brings people to the LMI Group website. That search tag is “Removal of Debris”. This is not surprising for it is an important issue in many Property claims. With any reinstatement or repair of a building, it is necessary first to remove and/or dismantle the damaged […]

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Procurement Gone Mad

I learned today that one insurer has changed the way that they will be addressing emergency repairs. As it has been explained to me, a restoration company is to be appointed and is to attend in a short time frame. (So far so good but this is where it all goes wrong). If the estimated cost of the works is greater than the paltry amount […]

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Is a 12 month Indemnity Period long enough? Far too often it is not.

While the length of recover for every business is different, it is my experience that in more and more claims, 12 months no longer cuts it. As I explain under the heading: “How long should I Insure for?” on LMI BIcalculator (http://www.bicalculator.com/KC/kc1.aspx?id=39) there are a number of factors that need to be considered. (Remember brokers, you can copy and send a link to your clients […]

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More on the Question of Extra Cost of Reinstatement.

I am pleased that one of the many  readers of this blog posted a comment on the question put to me on Extra Cost of Reinstatement (see above). The comment comes from Adam Matteson, Regional Director of Arch Underwriting at Lloyd’s (Australia) Pty Ltd, based in Sydney. Adam is the co-presenter of the ANZIIF ISR Master Class with me and also sits with me on […]

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Effect of the Clean Energy Act (Carbon Tax) on Building Costs

In a few short weeks, (from 1 July) the Australian Government’s Clean Energy Act [2011] will start taxing carbon emissions at the rate of $23 per tonne. This tax rate will be indexed to increase by 2.5% in real terms each year for the next 3 years. In fact the Federal Government has passed 18 pieces of legislation that from their “Securing a Clean Energy Future” legislative […]

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