Several accidents and disasters occur in our region, for which we are often not prepared. For instance, we almost never think about disasters such as flood, storm, fire, or even minor mishaps such as a flooding of the house because of broken faucets. It is wise to be prepared for such unprecedented occurrences by selecting a good grade of home and contents insurance in order to have coverage for your well-merited assets.
It is important to know that home insurance is different from contents insurance. You can buy either or both of them for added protection. When both the policies are combined, the insurance provider assigns distinct sum insured to the house and its contents. The sum insured is the total amount that your insurer is obliged to pay for your home or your belongings.
House and Contents Insurance best deal- who can take it
Content insurance can be taken by anyone- the renters or the homeowners. Some of the insurance providers provide coverage for contents of shared houses as well.
House insurance is important if you are the owner of the house. If you live in a rented house, you do not have to worry about it. If you live in a strata property, then the property is insured though a strata plan.
House and Contents Insurance best deal- tips to buy the best insurance
Do not buy over-coverage
Many people buy insurance for the market value of their house rather than its rebuild value. The house should be insured for the cost it would take to build in case it was demolished for any reason. You need to consider the cost of labor, architect, and materials in your area. The building policies cover your cost of the stay as your home is being rebuilt.
Do not buy
If you buy too less of insurance, you may get much lesser claim than the value of your home contents. You must calculate every single thing in the house while buying contents insurance, even the neglected items such as upholstery, cutlery, books, bed linen, CDs, DVDs, carpets, clothes, accessories, etc. You can use several online calculators to deduce the cost of contents in your house and their replacement value.
The content insurance policies typically restrict the valuable items like $1000 for non- luxurious items and $5,000 for jewelry. In case you have content more than the limits, you will be required to mention them separately to the insurer. Choosing not to mention the actual worth of your valuables will not let you file the right amount of claim.
Avoid under-insurance for your house
While buying insurance for your house, it is important to take into account expenses such as architect or building fees, taking away the debris, legal fees, enhanced material cost in case of a pervasive disaster, the cost of temporary accommodation, mortgage discharge, etc. All such costs must be covered in the sum insured of your policy. If you reside in a natural disaster prone area, you must buy total or extended replacement protection.
House and Contents Insurance best deal- how to lower the cost
- Answer all the questions of the insurer truthfully.
- Increase the security of your house to lower the premiums.
- Install burglar and smoke alarms of approved models to earn discounted premiums.
- Ask for a no-claim discount.
- Buy house and contents insurance from one insurer.
- Pay annual premiums rather than monthly premiums.