Insurance cover launched for SMSFs
Financial Standard 8 August 2012
Self-managed superannuation fund provider, Self Super Insurance has launched insurance cover products for art and collectable assets designed specifically for SMSFs.
Self Super Insurance urges Self-managed superannuation fund's (SMSF) to properly insure their assets as many currently expose themselves to a range of financial and legal risks.
The new insurance cover products include Art & Collectables Insurance, Commercial and Residential Property Insurance and Life Insurance.
"We believe running an SMSF comes with inherent risks beyond just investment risk, particularly with such a fast growing industry and dynamic legislative environment," said John Kelly, managing director of Self Super Insurance.
Self Super Insurance estimates many SMSFs are incorrectly insuring their assets.
"For example, insuring new artwork under their own Home & Contents insurance, when by law, they are required to be insured in the name of the fund or getting basic insurance for their investment property but neglecting other things like rent protection insurance," he explained.
"Insuring assets correctly can be complicated for the average SMSF, but if you seek advice from the appropriate experts and providers it can make that process a whole lot simpler and more effective," he added.
Many people don't consider insurance, Kelly said, because they think it won't happen to them, but we believe it is so easy to take this risk out of your fund, and the cost is immaterial compared to the amount you can lose.