If you own a home, house insurance should be one of the top insurance policies on your priority list. Not only will it turn your house into a safe haven for your family and yourself, but it'll also ensure that your house protects the rest of your investments and property.
In the event that your house is damaged or destroyed by fire or a natural disaster, house insurance will give you the financial assistance needed to repair or rebuild your home.
With the many available home insurance to choose from, you need to be careful with the policy you should purchase. Here is a quick guideline of what features you should compare to obtain the best deal.
- The Insured Value: You should have the correct information regarding the worth of your home and contents. You could use online home value estimators to come up with the right amount.
- Coverage: It is highly recommended that you buy at least a 10-year insurance policy. However, it is best to buy a lifetime policy so that you would never have to worry about insuring your home again.
- Location: Although this is not something you can change, you should note that your house's location significantly affects the premium you will have to pay.
- Risk: This is also one factor that you can't do anything about. However, it is still advisable that you take the necessary precautions to lower the risk of damage and theft.
- Your Personal & Home Details: Aside from the information regarding your house, you should also list the details about the items you want to insure and any other important information that the insurance company might need to know.
- Additional Coverage: If you can afford the premium, buy additional coverage, such as flood insurance, earthquake insurance, and personal liability. These might not included in the home insurance, and if you want to insure them separately, there may be an extra charge.
- Coverage Limitations: Usually, a homeowner's insurance is only good for the house it is insuring. However, a standard homeowner's insurance policy has limitations on the losses and claims that the insurance company will cover. It also limits the amount that one insurance company can pay to a single homeowner per year.
- List of Exclusions: Households that are already aware of the damage and losses that their property may suffer are the ones who are the most prepared. Nonetheless, this does not mean that you can leave it all up to your insurer. It would be best if you still made an effort to reduce the risk of fire or theft by fixing or replacing your locks, investing in an alarm system, and hiring a security guard.
Most importantly, make sure that you read the policy's fine print. By doing so, you can make sure that you won't be surprised with any exclusions, and you'll have an idea of what to expect should anything happen to your home.
House insurance acts as a safety net for your home, and in case something does happen to it, you won't have to worry about any expenses. Before you have your home insured, ensure that you know the coverage, how much it costs, and the policy's limitations. You may also ask policy experts to ensure that you only get the best for your income and needs.
Ensura is a complete package insurance service provider and your home insurance broker in Sydney. We have extensive partnerships that assist us in shopping around on your behalf to find policies that best suit you at the most competitive prices. Contact us to learn more.
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
