We have just discovered this unusual wording in the home insurance policies of some of Australia’s major insurers (insurers we do not use); it makes for quite disturbing reading.

Under their heading : General Exclusions, we find this statement.

Under this policy there is no cover provided for any loss, damage or liability caused directly or indirectly by or in any way connected with:

22/ the consumption of alcohol or drugs by:

• You
• Your family member
• A person with your consent
• A person who lives at your address or
• A person with the consent of a person who lives at your insured address

What this means is that, unless your family and all friends and visitors to your home are strict teetotallers and drink only spring water and green tea, then you could be left terribly exposed should an accident happen at the address , (or away from your home in the case of personal liability).

If somebody is injured or damage is caused to the building or contents and there is a mention of alcohol, the insured may be left without cover.

It appears that as simple an act as spilling a glass of wine on the carpet may lead to a claim rejection.

This is just another example of why you should use the services of an insurance broker such as Sarina Insurance & Financial Services.

It is our  job to read the fine print.