For most Aussies, their homes are the most valuable assets they own. Naturally, as with any investment of this significance, it's wise to ensure it's protected. That is why there's home insurance. But do you have an idea what type of insurance you need?
Read on as your trusted home insurance broker shares more about what homeowners need to consider when getting a home insurance policy:
Homeowners have access to two main types of coverages for their homes:
This covers the home's physical structure as well as its fixtures. Those fixtures include baths, sinks, toilets, kitchen cabinets and counters, solar panels, heating and plumbing systems, and others.
This protects the personal belongings of the homeowners. However, it could also include fittings or those items that are temporarily attached to the home or those free-standing furniture, appliances, and artworks.
It is highly recommended that homeowners get both building and contents insurance to enjoy complete coverage. Some insurance providers offer bundled discounts, so you might be able to save on premiums should you decide to get both.
On the other hand, renters only need contents insurance as the property owner is responsible for getting building insurance. There is also a type of coverage landlords can get called landlord's insurance that is created to protect against loss or damage to a rental property or its contents.
Most home insurance policies provide financial protection in case a home's physical structure or its contents are damaged or destroyed by:
- Fire or explosion
- Storm or rainwater
- Lightning strike
- Earthquake
- Tsunami
- Falling objects (trees, posts, etc.)
- Burst pipes
Typically, coverage for accidental damage, electric motor burnout, and floods are considered add-ons that could raise the price of the premium. Additionally, homeowners can choose liability coverage for financial protection against bodily injury claims or damage within their home premises.
A few factors could affect the cost of home insurance, from the type of coverage you are getting, add-ons, the location of your property and its features, your claims history, and others.
These parameters can vary for every policyholder, so it's impossible to provide an accurate estimate of how much your home insurance premium could cost. Some financial comparison sites say building insurance could start at $800 to more than $4000 annually. Contents insurance, however, could start at $300 and go above $800 per annum.
The ideal coverage should be able to cover the cost of repairs or rebuilds that are similar to the quality of the home before the damage occurred. There are some methods used to estimate this value:
- Cost-per-square-metre estimation, which is based on the size of the property and materials used
- Elemental estimating, which is based on the year the house was built, quality of fixtures and fittings, and other factors
One way to find out how much coverage you need is to keep receipts of the items you bought for your home and your monthly spending, as these can help provide an estimate of the limit. You can also make a property inventory to find out how much coverage you need. Make sure to include your furniture, home accents, appliances, gadgets, clothing and accessories, kitchenware, and ornaments in your inventory.
Home insurance is a cost you have to bear for the safety of your property and belongings. It is recommended that you reach out to a reputable home insurance broker to help you find the right coverage and get the most out of your investment.
Ensura offers you the services of a reliable home insurance broker in Brisbane who can help you with all your insurance needs. Get in touch with us to know how we can help you get the protection you need for your home!
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.
