Insurance

Home Insurance - Building and contents insurance

Q. Some insurers offer discounts to customers over 50. Why doesn’t CommInsure?

A. We do. CommInsure uses age-based rating as one of its rating factors on the Residential Home Package. The age of the oldest policyholder is used to provide a competitive premium. Customers will not have to wait until they turn 50 or be retired to receive an age premium benefit.

Q. If I list jewellery on my contents cover as a specified content, is it covered if I am wearing it away from the insured address?

A. No. All contents including specified contents are not covered outside of the insured address. Personal Valuables cover, available for an additional premium, covers personal items (such as jewellery and clothing) against accidental loss, damage or theft anywhere in Australia or New Zealand.  

Q. Do I need to have confirmation of ownership for my contents items?

A. The PDS states that where an item being claimed is not available for inspection by CommInsure, reasonable confirmation of ownership will be requested. This will help us replace the item(s) with the closest possible match. The types of documents and items we ask for as confirmation may vary from item to item, or situation to situation.

Reasonable documents and items to confirm ownership might include: purchase receipts, warranty certificates, valuation certificates and model and serial numbers. Other items such as instruction manuals, original packaging, photographs or receipts for previous repairs can often be used to support the claim.

Q. I have bought a plasma television. Do I need to list it as a specified content or tell CommInsure so that it is covered for the full value?

A. No. Televisions are considered general contents items, and do not require separate listing on a policy for coverage to their full value. Confirmation of ownership requirements still apply and it may be worth considering an increase in the sum insured if the item is of high value.

Q. If I need to claim under both building and contents cover, do I pay an excess for both the building and contents components?

A. No. When a claim relates to both the building and contents, and they are on the same policy, you only pay one excess – the higher of the two excesses. If you have a $100 excess on your building and a $200 excess on your contents, you would pay $200 (plus any event specific excesses that may apply on top of the selected building and contents excess).

Q. Why is there so much variation in pricing between companies?

A. Each customer and insured property is different, and so is the cover. There are many differences in the type of insurance cover offered by insurance companies and it is therefore important to check the type of insurance policy being purchased to make sure it has the level of protection customers need. Insurance companies take into account a number of different variables when they calculate how much a policy will cost, such as where the property is located, what it is made from, how much it is being insured for and who is living in it. Different companies have different experience regarding these variable and that’s why there can be big variations in price. 

Q. Why do some applications for building and contents insurance need to be referred to underwriters?

A. There are many reasons why applications for insurance are referred to underwriters for further assessment. The most common reasons are:

Home office:

This is an important question and must be asked correctly; otherwise it may impact the customer, particularly if it’s not asked at all. If the residence to be insured is being used

for a home office, the customer needs to assess whether our policy is suitable to their needs.

Criminal history:

This is an important question and must be asked correctly; otherwise it may impact the customer, particularly if it’s not asked at all. A potential customer who has been convicted of fraud in the past is likely to be refused cover. It is important that we minimise the number of fraudulent claims so our honest customers are not impacted. Even if the claim is not fraud related, certain crimes may create a high risk situation. The insurer must be aware of this, as it will affect their ability to accurately assess the risk of the property being proposed for insurance cover. For example, involvement in organised crime may lead to revenge attacks against a person’s car or home, thereby resulting in claims. Property unoccupied or untenanted: we need to know if a building is not being occupied or is untenanted, as there is a greater risk of loss or damage during this period. Additionally, cover restriction may apply when the building is unoccupied or untenanted.

Special limit items:

we need to ensure customers are adequately covered for any special limit items they have and that certain items are listed on their policy as specified contents. In addition, we need to ensure the amount of special limit items are proportional to the total sum insured for contents.

Car Insurance

Q. My 19-year-old son only drives the car occasionally. Does he need to be listed as a nominated driver?

A. Yes. Adding an under-25-year-old driver dramatically affects the risk the insurance company is exposed to. To correctly price, the insurance company needs to know the total risk and charge the relevant premium. This allows premiums to be fairly distributed and ensures that not all customers are charged for those that pose a higher risk of having an accident.

Q. Is the No Claim Discount (NCD) affected by windscreen damage?

A. Your NCD entitlement is not affected if the claim relates to the cost of repairing or replacing the windscreen or window glass in the vehicle if it is accidentally broken. An excess may be applicable if the Windscreen Option is not purchased.

Q. If I choose to restrict cover to drivers over 30 to reduce my premium, would I be covered if, in an emergency, someone under 30 was to drive the car?

A. The restriction will apply regardless of the circumstances surrounding the need for a person under 30 to drive the vehicle. This includes emergencies. If it is an emergency, an ambulance should always be called in the first instance. The only exception is valet car parking or service and repair people.

Q. If I hold Car Insurance with CommInsure would I be covered for the damage I cause to property such as street lights?

A. All our Car Insurance Policies cover legal liability to pay compensation for loss or damage to someone else’s property caused in a motor vehicle accident which is partly or fully the insured’s fault. This includes street lights, fences or damage to property. As with all claims, some exceptions may apply. 

Q. I am in the process of selling my car and purchasing a new car. What happens to my insurance cover during this period?

A. CommInsure will provide temporary cover if you permanently replace your vehicle in the period of insurance from the date of purchase to a maximum of 14 days, if you:

• provide CommInsure with the full details of the replacement vehicle within the 14 days of taking ownership of the vehicle
• receive CommInsure’s agreement to cover the replacement vehicle, and
• pay any additional premium required.

 

The temporary cover applying to the replacement vehicle is the same as the cover applying to your vehicle.

Q.  I have just bought a new car; how does the ‘replacement of a new vehicle after a total loss’ benefit work?

A. If you are the first registered owner of the vehicle and the vehicle is a total loss within the first 24 months of the original registration as a result of an insured event in the period of insurance and CommInsure has accepted a claim for the loss of the vehicle, then the following will apply.
If a replacement vehicle is available within Australia, CommInsure will:

• replace the vehicle with a vehicle of the same make, model, and series
• replace any modifications, options, accessories or fittings that are fitted to the vehicle and are stated on the customer’s Certificate of Insurance,and
• pay the on-road costs including the first twelve months’ registration and Compulsory Third Party (CTP) insurance.

Any refund you obtain from the original registration and CTP insurance must be paid to CommInsure. If CommInsure replaces your vehicle under this benefit, the policy will continue to cover the new replacement vehicle until the end of the period of insurance. No additional premium will be payable.

If a replacement vehicle is not currently available within Australia, CommInsure will pay either the market value or agreed value of the vehicle, whichever is shown on your current Certificate of Insurance. If CommInsure pays either the market value or agreed value, the policy will come to an end and no refund of premium will be payable.

Q. Do I have a choice to insure my car for market or agreed value?

A. Yes, you have a choice to insure your vehicle for either an agreed value or the market value. The difference between the two is as follows:

Agreed value means the amount CommInsure agrees to insure the vehicle for.

Market value means the amount it will cost to replace the vehicle, taking into account the age, make, model and the condition of the vehicle immediately prior to the loss or damage.

Loan Protection

Q. Does Loan Protection need to be for the full amount of the loan? What if I only want to insure part of it?

A. You can only apply for the amount of the loan or credit limit, up to $750,000 (the maximum sum insured). 

Q. I have been employed casually by the same employer for five years. Would I be eligible for Loan Protection?

A. No. You must be permanently employed (on a full-time basis, meaning at least 35 hours per week), self-employed or employed under a fixed term contract for at least 20  hours per week for a combined period of at least 18 consecutive months).

Q. When would I be charged the first premium?

A. From the date CommInsure processes your application and issues a Loan Protection policy. A policy schedule is sent to you showing the risk commencement date and the premium amount due.

Q. If I have been on medication for more than three weeks but only for a minor condition such as eczema. Would I be covered?

A. You must be able to satisfy the personal history questions as per the Loan Protection application. If you cannot answer ‘no’ to all the questions, you cannot be issued with a Loan Protection policy and should be referred to an Insurance Specialist.

Q. Is there someone who can make decisions on personal history questions, depending on the circumstances?

A. No. This is a non-underwritten product, and to keep the sales process simple there is no further underwriting as a result of answers to the personal history questions. If you are not able to satisfy the personal history questions you should be referred to an Insurance Specialist.

Q. Why don’t I receive a renewal notice for Loan Protection?

A. The premium rates are level, meaning they do not increase with age, therefore the same premium is charged every month (unless the sum insured increases). The premiums are paid by direct debit from your bank account or charged to your credit card. An annual notice is sent to you on the anniversary date showing them the premium for the following year, but there is no action required from you.

Q. What’s the difference between Loan Protection and life insurance?

A. Loan Protection provides cover to help the customer meet their Commonwealth Bank loan commitments by paying off the outstanding loan balance, while life insurance provides a lump sum payment on the death of the customer. Loan Protection is limited to the loan amount, while life cover (Personal Insurance Portfolio (PIP)) allows for any sum insured.  Furthermore, PIP has additional options and features not available to Loan Protection.

Q. If I make a principal reduction on my loan, can I reduce the amount of my Loan Protection cover?

A. Yes. To adjust the cover, you will need to complete an Alteration to Existing Policies (CIL161) form.

Q. If my loan is paid out under Loan Cover, does the balance of the sum insured go to the estate?

A. No. The amount paid is the outstanding loan balance, i.e. if your loan is insured for $500,000 but the outstanding balance of the loan is $400,000, then we will pay $400,000.

Read more about natural disaster claims for your car or home.