It is important to be prepared and ensure that you have enough protection when an unfortunate event arises. So how do you protect your home and possessions? You will need to consider home and contents insurance.
With numerous insurers offering a wide range of insurance products, it is essential to compare home insurance policies and have a shortlist of potential providers. You can then further narrow it down to choose the best home insurance. What can by covered in this type of insurance? Here are some things to take into account:
There are two types of cover levels: Defined events or insured events refer to policies that offer coverage when your property is lost or damaged as a result of certain incidents including fire, explosions, flood, tsunami, earthquake, theft, vandalism, or burst pipes. On the other hand, accidental damage refers to coverage when your house or its contents are damaged throughout your everyday life.
What can HOME insurance cover?
A home insurance can offer coverage for the costs associated with replacing or repairing your home when it is destroyed by storms, fire, explosion, theft, or an unexpected escape of liquid from burst pipes. Bear in mind that you can get extra cover for incidents such as flooding rivers and other bodies of water.
To avoid under-insuring, make sure to consider all expenses including architect’s fees, the amount needed to comply with council regulations, mortgage discharge fees, and costs of temporary shelter. Also, if you live in a flood- or fire-prone area, you may want to purchase total or extended replacement protection. You can check with your local council to know if there are flood maps available so you can be guided accordingly.
What can CONTENTS insurance cover?
A contents insurance can offer coverage for the costs related to repairing or replacing your possessions when these are damaged or lost due to certain events such as storms, fire, theft, unexpected escape of liquid from burst pipes, or explosion. When it comes to contents, these can include your furniture, electrical appliances, carpets, jewelry, and curtains.
To avoid being under-insured, create a list of your possessions and estimate the amount needed to replace each content. Take note that contents insurance policies normally impose a limit to certain valuable items.
Do you have other ideas on home insurance comparison? Share your tips in the comments section.