At Rivers, we have been watching and discussing this issue within our Austbroker Group.  At this stage, it’s mainly in the Direct Market space, however, we are concerned with what we are hearing and advocating for everyone…. What do you think about the below? 

Insurers have responded to media reports of home and contents policies being canceled or claims denied on grounds that clients were running income-generating side businesses or hobbies from their properties.

In some cases mentioned in the ABC News articles, consumers say they were informed by their insurers that their policies would be canceled because of the risk involved.

Major personal lines insurers Suncorp and Allianz have explained their approach to underwriting home and contents risks.

“It is important our customers have the correct cover for their property – and we encourage anyone who is unsure to contact us so we can clarify their situation and how the policy would apply,” a spokesman for Suncorp brand AAMI told

“As with all personal insurers, our home insurance policies are underwritten and priced for the risk of a domestic private home.”

The spokesman says when a business is being run out of the home, it could represent a “significantly” different risk.

An Allianz spokesman says the insurer relies on the “accuracy and honesty” of policyholder responses to ensure correct insurance cover for their circumstances.

“Regardless of the type of cover, policyholders are required to meet disclosure obligations when obtaining, changing, or renewing insurance cover,” the spokesman said.

GT Insurance Brokers Director Glenn Thomas says he is concerned over the industry’s approach as he has some clients whose home and contents insurance applications have been rejected because they make a small income from hobbies.

He says one of his customers, an 80-year-old-pensioner who sells the extra eggs he gets from his chickens to his carer, decided to stop doing so after his insurer said his policy would be canceled if he continued with the activity.

“I genuinely believe that insurers are wanting to protect their customers,” Mr. Thomas said. “But it begs the question ‘what happens if a consumer sells their kids’ clothes on Facebook Marketplace or eBay on a regular basis?’.”

Credit : InsuranceNews Magazine August/September edition

Call your Broker to discuss this more if you have any questions.

Note: this article contains general advice only & you should seek further information from your personal Rivers Insurance Broker about the impact of any information provided here on your personal or business needs. ABN: 28 010 242 681 AFS License: 247093

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