RNZ’s money correspondent Susan Edmunds.
Photo: RNZ
Send your questions to susan.edmunds@rnz.co.nz
I’ve just found out that I’m being made redundant but I am due to settle on my first home in a few weeks. Can I pull out, now the deal is unconditional?
Lawyer Thomas Biss, from Henderson Reeves, says it might be tricky.
He says, once you have an unconditional agreement for a house purchase, that’s a fixed commitment from both sides that you will settle.
“The purchaser has accepted the risk of a change in their circumstances. If they are not able to settle then they are likely to lose their deposit unless some concession is made by the vendor.”
But that may not be something to hold out much hope for, because the vendor will probably have used a significant chunk of your deposit to pay the real estate agent’s commission when the deal went unconditional.
If you used your KiwiSaver money, this is no protection – you could also lose this.
You might be able to negotiate an extension on your settlement date, to give you time to find work.
Could you think about getting boarders or flatmates in to help you pay the mortgage, even if just until you find a new job?
I have health insurance. The insurance policy documents are hard to understand so I’m never sure if what I need will be covered. If I call them to check if a provider or service is covered, the person on the phone asks me for symptoms before they will tell me if they’ll cover the claim. I always feel like they’re trying to get information they could use to deny the claim, and I guess they don’t want to tell me ahead of time what’s covered so I can’t game the system. Can I refuse to tell the insurer my personal situation and ask how to do a successful claim? And can they use what I tell the random stranger on the phone to deny a claim because I said the wrong words?
Karen Stevens, Insurance and Financial Services Ombudsman at IFSO, which deals with complaints that can’t be resolved between financial service providers and consumers, says it is not easy to refuse to give information upfront.
“Every situation is different so, unless you provide the relevant information, it’s unlikely you’ll get the right response about making a claim. Moreover, until the claim is submitted, the insurer cannot say if it will be successful. It will depend on whether it comes within the policy cover and small details can change the outcome, such as whether it might be a pre-existing condition and, therefore, excluded. It’s always important to tell the truth – if you don’t, an insurer can cancel the policy.
“An alternative to phoning to ask is to look on the website. Most insurers have common FAQs. They are all anonymised and you won’t have to give anyone any details.”
She says if you are denied it is not usually the case of using the “wrong words”.
“Rather, if you provide information to the insurer which indicates a claim is not covered under the policy, the claim might not be accepted. It will always depend on the facts. It’s not a question of telling a ‘random stranger’ – you are providing information about your case to the insurer to get information back about the policy cover.”
Tim Fairbrother, of Rival Wealth, points out that if you want to avoid having to talk to your insurer, you could engage the services of an insurance adviser who would handle the claim for you.