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Finding the Right Home and Contents Insurance Part 1

Having your own home means that you will need to have insurance to ensure that you are financially protected in a disaster or accident. If you are just about to get your insurance, it is important to make sure that you get the right one for your needs.


In this two-part article, we will answer all your questions about insurance policies and getting one. Make sure to head on over to check out the second part after reading this one.


What Kind of Home Insurance Should I Get?


When looking for home insurance, you will notice several different options available to you. Some are for essential protection, and others are for protection against more severe circumstances.


You must select one that will protect you against the most common and dangerous disasters that you might encounter. For example, if you live in an area where hurricanes are common, you will want to make sure that you get a policy that will protect you against such a scenario.


It is also important to note that there is a difference between insurance for your building and your belongings. Ideally, you will need to get both.


How Much Does Insurance Cost?


The insurance cost will depend on the coverage you select and the area you live in. For example, a person in an area prone to severe weather or other disasters would pay much more for insurance than someone in a rural area.


If you think about the amount you pay for your home and your belongings, you will probably understand that the cost of insurance is not too bad. Depending on the coverage, a policy for your home and belongings could cost as much as $25,000 per year.


What Does Home Insurance Usually Cover?


As mentioned above, most policies will cover you for different incidents. However, there are some common events that almost all policies will cover you for.


Insured Events


Below are some of the most common events usually covered in all policies:


  • Fire

  • Flood

  • Storm and rainwater damage

  • Lightning

  • Earthquake and tsunami

  • Theft and attempted theft


Accidental Damage


Aside from the mentioned above, some policies will also cover accidental damage. For example, if neighbourhood kids were playing and a ball accidentally broke your window, this could be a basis for coverage depending on the insurance policy.


What is Sum Insured Policy vs. Safety Net Policy?


People new to insurance will usually find the term "Sum Insured" confusing, but it's quite simple. It is simply an amount that you will get for your home. This amount is usually calculated after the cost of the building itself and then the contents.


The term "Safety Net" usually refers to the level of insurance you can get, which is usually on top of the insured sum. For example, some may give you a payout of an additional of up to 30% on top of the sum insured.


How Much Insurance Coverage Do I Need?


The amount of coverage you need will depend on the value of your home and your belongings. Your insurance agent will usually suggest a number for you to get, but it is always important that you do the math and make sure that you get the right amount of coverage.


For example, if you have a home worth $500,000 and your contents are worth $50,000, you will need to get at least $550,000 in insurance coverage.


Conclusion


Now that we have answered some of your questions, you can head to the second part of this article to learn more about lowering insurance costs and documenting accidents for claims. Remember that insurance is necessary to keep you financially safe and covered in an accident.


If you need home and contents insurance, you can work with New Wave Insurance. We will be glad to help you find the best insurance for your assets right on the Gold Coast! Contact us today to get started.


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