Choice Urges Home Owners To Be Cautious When Buying Home Insurance

Post by Sharat on December 21, 2011 · Under insurance · Comment 
Choice Scaring Away Property Owners From Buying Home Insurance

Choice, the consumer group is advising consumers who live in places that are prone to flooding from taking out insurance in an irresponsible manner, whilst at the same time heavily criticizing the industry according to the insurance council.

Recently the advisory group held its annual Shonky Awards, where the group awarded lemon trophies for dubious dodgy and deceitful goods and services.

Choice singled out the insurance industry, following this summer’s flooding in Victoria, Queensland and New South Wales.

According to Choice, this year’s flooding left people who lived in the three states without any cover as insurers sought to avoid their liabilities.

Rob Whelan the executive director and chief executive of the Insurance Council of Australia says the group may scare property owners who are at risk from buying flood insurance.

“We don’t want a situation to arise in which property owners do not have appropriate cover for their property because they were put off by irresponsible and inaccurate statements by Choice,” Mr Whelan said.

According to Mr. Whelan, 130,000 claims were made and determined in the immediate aftermath of the flooding and cyclone which struck Queensland during last summer. Of that, only 725 claims ended up in dispute, representing just 0.6 per cent of the outstanding total, which were referred by policy holders to the insurance ombudsman.

“Those property owners with a flood risk should be responsibly encouraged to purchase flood insurance and not leave themselves unprotected. Handing out dummy awards is a stunt, not a solution. It’s not worthy of Choice.” he said.

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