Can’t afford insurance! – can you really afford not to have any?

Can’t afford insurance! – can you really afford not to have any?

Last week it was reported that a jewelry store in Melbourne’s CBD was robbed of over a million dollars worth of opals. The report went on to say that the owners elected not to insure at last renewal due to the increasing cost of insurance. What ever the premium was, with the benefit of hindsight would be significantly less than the financial loss they now […]

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Explaining why commercial insurance policies have penalties for under insurance.

Explaining why commercial insurance policies have penalties for under insurance.

I received this question overnight. Hi Allan, I was explaining underinsurance to my husband today on commercial risks and he asked me the question on why do insurance companies apply this, as if he is paying premium on half the risk why should he then get penalised and not paid out the insured amount. I actually couldn’t tell him why insurance companies do this. Do […]

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Blog question: what should the Section 1 Declared Value be based on under an ISR

Blog question: what should the Section 1 Declared Value be based on under an ISR

I received the following question. Hi Allan Most insurers include the estimated cost escalation based on lead times contained with a building valuation as part of the CURRENT building Declared Values.    Obviously during the reinstatement phase construction costs increase due to the significant length in time required.  Do you think the calculation below is fair and reasonable to be included as a rateable value? […]

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Emergency Services Levy – the added cost to insurance

Emergency Services Levy – the added cost to insurance

A few weeks ago when I was watching the disturbing photographs of the bush fires in Queensland and New South Wales they showed footage of the Premier of New South Wales meeting with volunteer fire fighters. I wanted to post something at the time, but did not feel it appropriate when people’s lives and homes were at risk, but the thought crossed my mind. How […]

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Under Declaring – You are now the insurer!

Under Declaring – You are now the insurer!

Yesterday I had one of those calls where you can feel the frustration and stress in the broker, where a long standing client is under attack by another broker who is simply selling on price and stripping away the years of hard work that the holding broker has put into the client. In this case, the attacking broker is advising the Insured to only declare […]

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I just want to say thanks

I just want to say thanks

This week I attended the Steadfast Conference and I was overwhelmed by the number of people who came up and gave encouragement and positive feedback on this blog. I think the most telling thing to me has been the number of people who mentioned they have gone out and purchased a fire extinguisher following my post on the fire in my own home. The list […]

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I fully support the review of Fire Service Levy in NZ

I fully support the review of Fire Service Levy in NZ

It was a nice way to end a tough week to read in InsuranceNEWS that the New Zealand Government is looking at alternatives to having the fire service levy heavily funded by insurance. There is absolutely no doubt that people buy less insurance when the price goes up. We saw it here in Victoria before the Black Saturday bush fires, in North Queensland due to […]

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Even before we get a chance to stuff up, we are being criticised by the media and politicians. Let’s get real.

Even before we get a chance to stuff up, we are being criticised by the media and politicians. Let’s get real.

I thought, with the long overdue departure of Karl Stefanovic, who so unfairly attacked the industry after the Brisbane floods that I stopped watching the Today Show, that we would be getting more balanced reporting by the media. However, no doubt picking up on the Deputy Premier’s call for banks and insurers to “lift their socks” and show compassion to North Queenslanders’ affected by the […]

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Compulsory Third Party Insurance Explained

Compulsory Third Party Insurance Explained

When the statistics came out showing just how few people understood Compulsory Third Party Insurance, it created quite a discussion with several of my longest standing friends. Within LMI, there are a number of our staff who have been involved in motor vehicle accidents where the third party had no insurance at all. The worst was an overseas student, who had borrowed a friend’s car, […]

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The emotional & financial stress following a major loss

The emotional & financial stress following a major loss

Gary Price, our Tasmanian Manager with over 50 years of experience in the industry wrote to me after reflecting on a new total loss claim he is involved in. “I have a total loss fire with a modest sum insured $430,000. No issues regarding policy indemnity. The claims officer wants the premises valued as they consider the premises was under insured and want to apply average. You can […]

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