An amendment is any change in your circumstances or change to your property that would have an effect on your home insurance. If you make any amendments you must inform your insurer. This applies to changes which would affect either buildings or contents insurance.
Amendments include:
> an alteration to your house which in any way alters its rebuild value (the cost of rebuilding it if destroyed), such as changing the number of bedrooms
> if you purchase additional items of value, such as furniture or expensive flooring
Your insurer may charge an administration fee if your policy requires alteration as a result of an amendment. However, failure to inform them of any amendments to your building or its contents to avoid paying the fee could mean that your insurance does not provide you with necessary cover. It is important to remember that your policy will only cover you for a certain amount, for example $500,000 worth of buildings insurance and $75,000 worth of contents insurance.
If you make an amendment which increases the rebuild value of your property above this amount and you have to make a claim, you may have to pay a large proportion of the repairs or replacement yourself because your insurance will not cover any costs incurred which are above the maximum amount. Likewise, if you buy any items with a value of more than $1,500, most insurance providers will ask you to inform them, so that your contents insurance can be adjusted accordingly to ensure that you are adequately covered.
Exclusions
No insurance policy can cover you for every eventuality. Anything that is not covered by your home insurance is referred to as an 'exclusion'. There are also certain restrictions to bear in mind before you make a claim. Each insurance policy is different: ensure you read your policy documentation carefully, so you fully understand which exclusions and restrictions apply to your insurance.
In general the following things are excluded:
> Radioactive contamination
> Pollution contamination
> Damage / loss as a result of war, invasion or terrorism
> Damage / loss as a result of sonic bangs or waves (for example, from aircraft travelling above the speed of sound)
> Rot, pre-existing damage or deliberate loss / damage caused by you
> Certain electrical or electronic breakdowns, which are the result of computer viruses or the device failing to recognise the correct date or time
> Damage / loss if your property is left unoccupied for more than sixty days
Further exclusions include: damage or loss as a result of a break-in when you or a member of your family or household was in the house, unless force or violence was used (for example, you are not covered if a burglar came in an open door).
If you have a separate insurance which also covers certain items insured under your home insurance policy, your home insurance provider will only be liable to pay their share of the costs. Essentially, this ensures that you do not take out several home insurance policies with a number of different insurers and make a claim with each one for loss or damage.
