After decades of people resolutely not reading their insurance policies, the Insurance Council of Australia (ICA) has taken a short-cut towards understanding. It has published a “building and contents insurance guide” to help consumers better understand their policies, even if they don’t read them. The guide provides a checklist and informs readers about exclusions they can expect in their policies.

ICA Executive Director Alan Mason says the majority of insurance-related complaints result from “a misunderstanding about items and events” that are not covered within a policy.

“Generally, people don’t take the time to read and understand their insurance policies or ask their insurer, agent or broker questions, even though the Financial Services Reform Act provides a 15-day cooling-off period in which to do so,” he said.

But policies are legally binding contracts, and to meet all the legal requirements “they still involve some degree of complexity”.

“The ICA guide is designed to assist people with becoming more involved with their insurance purchase and with taking more responsibility to ensure that they have adequate cover,” Mr Mason said.