A few quick questions: Would you hand over hundreds of dollars without knowing exactly what you are getting? Would you make or accept promises without being clear on what they involve? Would you sign a contract without fully understanding the agreement?
If your answer is something like, “of course not!” then you are probably the type of person who reads your insurance Product Disclosure Statement (PDS) from cover to cover, and you might not need this article.
But if you are thinking, “Wait… read a PDS from start to finish? Really?” then this is for you. Here are some great reasons why reading your PDS could be the most valuable few minutes you spend this year.
A PDS tells you what is and is not covered
When you take out an insurance policy, you are looking to buy protection. But from what? The PDS will tell you exactly what risks are covered. They are referred to as ‘insured events’. Sometimes there will be conditions or certain circumstances in which protection is provided and the PDS will be crystal clear about it all. Importantly, the PDS will also tell you exactly what is not covered. There are some risks that are just too great for insurers to take on. They include (but are not limited to) anything arising from events such as war and terrorism, anything arising from you acting illegally or negligently, and, as you would expect, events that happen outside the period for which you are covered.
A PDS has lots of good news
Anyone who does not read the PDS or thinks skimming through is enough, might miss out on some little gems throughout. For example, in an EBM RentCover PDS, you might be surprised to find accidental, malicious and pet damage cover, automatic flood cover and protection for drug lab clean-up.
A PDS gives you a ‘must-do’ checklist
When you take out an insurance policy, you are entering into a contract with your insurer. They agree to take on some of the risks of operating a rental property, and in return, you agree to certain responsibilities. This includes keeping the insurer informed of any relevant changes that could affect you or the property, for example, if you are planning renovations.
Landlords also have a responsibility to keep the property well-maintained and, in the event of damage, to take all reasonable steps to prevent further loss.
Claims can be denied or reduced if a landlord breaches their duty of disclosure or any of the policy conditions. For this reason, it is well worth reading your PDS carefully. It is ultimately your practical checklist for keeping your investment and your cover safe.
A PDS guides you through making a claim
Keep your PDS on hand and use it as a valuable reference if you ever need to make a claim. It will tell you how the insurer will respond if you suffer a loss covered by the policy and want to make a claim. It will also step you through how to go about your claim, including any supporting documentation or evidence you may need (like photos, receipts, or rent records).
Not all PDS’s are the same.
Think you have seen one PDS, you have seen them all? Not quite. Every insurer and policy is different, which means each PDS is unique. Choosing the wrong policy without reading the PDS carefully could leave you thousands of dollars (or more) out of pocket when it comes time to make a claim.
Taking the time to read your PDS so you do not risk being uninsured, under-insured, or inadvertently voiding your policy could be one of the smartest decisions you make as a landlord. Read through the PDS and have a question? Contact the EBM RentCover team – 1800 661 662.
*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.
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