September 21, 2018

5 Tips on How to Compare Home Insurance in Australia

A house can mean different things for people. It can be where you can spend your time comfortably with your family. For others, it’s tangible proof of their hard work and determination to achieve success, with all of your possessions. It also provides a form of security against external elements. No matter what the meaning is, a house is very important. We cannot live comfortably without it. That’s why it is very essential to protect it against unexpected damages or even loss. How? By getting a home insurance.

One way to ensure that you will get a general idea on the right home insurance for yourself is to use a comparison tool.

Home insurance gives you protection from different aspects such as repair and loss. If you have the right home insurance, you can have peace of mind with the fact that you can rely on it in case of an unexpected event.

There are so many types of home insurance in the market nowadays. One way to ensure that you will get the right one is home insurance comparison. Considering the numerous things to take into account, this can be overwhelming, but don’t fret. Here are some tips on how to compare home insurance in Australia:

Know the coverage that you need

In general, there are three kinds of insurance, depending on what’s covered:

  • Home and contents insurance – helps cover the expenses when you need replacement and/or repair work not only for your house but also for your belongings.
  • Contents insurance – as the name suggests, it is your cover for your possessions. If you’re renting, this may be the insurance for you.
  • Building insurance – provides protection only for your house and other buildings including your garage. It does not include your possessions.
  • Identify what is included in the insurance policy. Compare home insurance in Australia based on what is included in the policy. In general, these are the things to look for:
  • Flood – when a dry area gets covered by water
  • Fire – damages which are caused by fire or burning; includes lightning that caused a fire
  • Typhoon – direct damages from heavy rains, strong winds, and/or lightning
  • Earthquake – direct structural damages caused by seismic activities and tsunamis
  • Actions of the sea – damages caused by high tides and other oceanic movements which are not a result of extreme conditions
  • Lightning – direct damages caused by lightning strikes
  • Impact – damages from falling trees, electricity lines, satellite dish, etc.
  • Vandalism – damages deliberately caused by malicious acts
  • Theft – damages caused by theft or attempted robbery
  • Escape of liquid – damages as a result of burst pipes, swimming pools, etc.
  • Alternative accommodation – a temporary area where you can stay when your house is unlivable due to damage/s
  • Liability of homeowners – medical and/or legal costs for injuries of people on your house or property
  • Loss of income – as a result of damages to your house or belongings

Know the exclusions

If you consider the inclusions of the home insurance, it is equally important to check the exclusions. In most cases, these are the things that are not covered by home insurance:

  • Wear and tear including rust, mold, etc.
  • Actions of the sea if your house is in a high-risk coastal area
  • Nuclear or chemical pollution
  • Damages caused by the policyholder as a result of doing illegal acts
  • Expenses related to discomfort or stress after an incident
  • Damages deliberately caused by the policyholder
  • Damages caused by shady home renovation or construction

Check the fine print

As with any contract, it is important to ask the insurer about terms in the product disclosure statement that you don’t understand. Take time to read the contract carefully to avoid any inconveniences later on.

Utilise a home insurance comparison service

With so many aspects to consider, it is very convenient to use a home insurance comparison service. Not only can you make it easier to determine what type of coverage suits your needs, it also enables you to compare policies in one website and get the best offer. There are a lot of comparison services but in general, it’s pretty straightforward. First, identify the type of insurance that you need, then browse through the different policies available. After choosing the policy, you can complete the insurance application through the website or telephone number of the insurance provider.

A home insurance comparison service is a helpful tool, but keep in mind that it can only provide general advice. You can use it as a guide to compare home insurance policies in Australia, but the actual decision-making process involves evaluating your needs and current situation. In this way, you will be able to choose the best home insurance for you.

Got other tips for home insurance comparison in Australia? You can share your ideas in the comments section below.

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