Homeownership does not end at successfully closing a deal. You have to make sure it is as comfortable to live in as when you first moved in. It means protecting your home at all costs. After all, this could be your biggest investment yet. Fortunately, you can protect your assets from natural calamities and mishaps through home insurance.
In this article, we discuss everything you need to know about choosing a home and contents insurance.
Home insurance in Australia can be categorised into two types: building insurance and contents insurance. Building insurance covers the physical structure of your house, while contents insurance protects your belongings inside the house. You can purchase both types of insurance together as a bundle, or you can purchase them separately.
If you just insure your building, then you are only covered for the structure of the building itself. This includes the walls, roof, and any permanent fixtures and fittings. It does not cover your belongings, or any damage caused by things like floods or storms.
If you just insure your belongings, then you are only covered for the contents of your home. This includes your furniture, clothes, and electrical appliances.
If you combine your building and contents insurance, then you are covered for both the structure of the building and your belongings. This is usually the best option as it gives you the most comprehensive coverage. It also often works out cheaper than insuring your building and contents separately.
- Natural Calamities
All insurance policies cover property damage or loss caused by a predefined set of events. Fire, explosion, flood, storm, lightning, accidental glass breakage, earthquake, tsunami, theft, attempted theft and vandalism are all covered by the majority of insurance types.
- Accidents
Some plans cover common actions that cause damage to your home or property. This cover is typically bundled with premium products or sold separately.
This true cost of home insurance is determined by your location, your security, the quantity of insurance you have on your house, and the excess you select. The varying numbers may be due to weather-prone areas, prestige insurance company services, and more. As such, look around and see what deal is best for your needs.
Sum-insured plans pay up to the certified amount. Most insurance policies will pay up to the amount you decide to replace your home and personal property. Total replacement policies cover repair, replacement, and rebuilding expenditures. Meanwhile, plans with a safety net might pay up to 30 per cent more than the total amount insured. Safety nets can be useful if you are underinsured.
The “sum-insured” figure is the cost of repairing everything. Your sum insured can be calculated using online calculators. Make use of your insurer's calculator. Some insurance companies cover demolition and debris disposal, while others do not. Their calculators will account for these costs so that the results may differ.
Calculate the “sum insured” to avoid any type of underinsurance. You will need two sums insured if you have combined coverage for your home and its belongings.
Indeed, it can be daunting to make even bigger payments on insurance after buying a home or taking out a mortgage. However, it is vital to understand that insurance is also an investment that could save you in the long run.
If you are looking for a professional home insurance broker who can assist you in finding the right home insurance plan, contact Ensura. We will provide you with high-quality deals that match your needs.
Disclaimer: As with any insurance, coverage 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.
