Buying home and contents insurance requires homeowners to know how much their possessions cost with depreciation. Their value cannot be underestimated, especially in the face of risks such as an accident, fire, or other natural disasters.
In 2010, the average value of an Australian household’s contents was over $60,000. However, the value of your possessions may differ; you should keep your inventory to ensure that you’re adequately covered in the case of damage or loss.
Here are some of the best tips to help you with home & contents insurance!
Examine Your Claim History
If you’ve filed a claim with your insurance company before, they may see you as a higher risk of filing another claim. This means you may have to pay a higher premium for home & contents insurance in the future.
Pay Attention to Policy Inclusions
Australian insurers usually have unique inclusions and exclusions, caps, limits, and conditions. For example, if you have a costly item, like a piece of jewellery, a rare painting, or even an antique or two, you may have to pay a higher premium than someone without these items.
Some choices may increase your premium if the insurer determines that they increase your risk for submitting a claim.
Check Your Payout Amount
If you live in an area with a high probability of damage or loss, such as a cyclone, and file claims for every failure, your insurance premium may be higher, as your insurer may need to pay out triple the amount in the case of a claim. The level of risk for certain events may be determined by the history of claims filed in the area.
List Everything You Own
Go from room to room, take stock of what you need and want. This method allows you to see what you have and to write it all down systematically.
Some possessions may be unimportant enough to exclude from your insurance estimate, but if the unthinkable happens and you lose everything, these things will still need replacing. Apparel tends to be inexpensive, but you may be under-insuring yourself if you add up a few of them.
Don’t forget to update your list regularly, say every time you purchase a new item. A new computer, TV or other household item purchase could increase the total insured value of your contents. In which case, you need to check whether your home and contents insurance value should be increased.
Photograph Everything
Aside from textual documentation, visual evidence is most helpful when claiming home and contents insurance. A photo can help you make an accurate list of belongings, and a photo can help you prove ownership of your belongings in the case of a claim.
Store Receipts of Expensive Items
Receipts help with listing as they accurately remind you of how much you spent on something. It may even help you get back the money if you have a receipt to show the store if the item isn’t functioning correctly.
Note the Excess
Just like other insurance plans, you usually select an annual deductible that you’ll need to pay if you make a claim. If you decide on a higher deductible, your insurer may lower your premiums because, in exchange for this, they will likely need to pay out less if you do file a claim.
Are You Sure You’re Insured?
A mistake many homeowners make is forgetting to renew their home and contents insurance. In most policies, a clause states the policy will be terminated if it’s not renewed by the due date. Make sure you’re covered before you need to be! As they say: prevention is better than cure!
Get the right home and contents insurance policy with New Wave Insurance! We can help you find the best plan to protect you from financial risk if your home is damaged or destroyed and can also cover your home’s contents if they are damaged, lost or stolen. Book a free 15-minute consultation now!