More exclusions to be wary of in home and contents policies – mechanical or electrical breakdown, failure or malfunction

As I read one of the home and contents policies I have been reviewing I could not believe the following exclusion.

 

 

 

 

 

 

 

 

 

 

This in effect means that if a set of Christmas tree lights fails and burns down the house, there is no cover. There will probably be 6 such fires this coming festive season.

Similarly, if a TV catches fire, or a clock radio (occurences are hundreds per year in Australia and New Zealand) there will be no claim payable. If an electrical powerboard malfunctions and causes a short circuit which results in a fire, again no claim is payable.

When you consider the number of electrical fires and the number of fires of unknown origin that are put down as “electrical” this policy really does worry me.

It claims to be designed for the seniors in our society. To me, the cover afforded by this policy due to this exclusion and the raft of other harsh and punitive exclusions, borders on abuse of the aged. With the general exclusions way down the back of the policy after the perils are listed and perils exclusions shown, the design is, to my mind, bordering on trickery which allows the unwary to think that they have cover when they in fact don’t.

If you are not sure of the cover you have, or you are worried about your parents, grandparents or other relatives, then I strongly recommend that you or your relative contact an insurance broker who will provide advice on what cover they currently have and the covers that are available so that they have the protection they really need.

 

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