October 19, 2018

How to Avoid Under-Insurance of Home and Contents

Why do we get home and contents insurance? For one thing, it’s to ease the financial burden if something unfortunate was to happen to your property and possessions. It can also be that we may not have enough savings to renovate or rebuild our home that sustained severe damages. Whatever it is, it goes without saying that having enough coverage for home and contents is essential.

If you have home insurance, what if you do not insure for the amount that is needed to rebuild and replace your property? In other words, what if your home is under-insured? It should be avoided at all costs as it can bring about a significant impact to your insurance payout in case you need to make a claim.

Are you at risk of being under-insured? Are your property and contents insured for the right value? Avoid some of the pitfalls by following these simple tips:

  • Before purchasing or building a home, be sure to compare home insurance policies. Get several quotes from different insurers. If you’re in a flood-prone area, the premiums may be higher.
  • Check if your home has building renovations, improvements or extensions as these can greatly affect the value of the property.
  • Before renewal, consider the purchases that you’ve made. These include electronic equipment, furniture, jewelry, and other valuables.
  • Check the sum insured limits of your policy. You may need to get coverage for possessions that may not be included in the standard contents policies.
  • Inspect each room and see how much it would cost to replace each possession. Make a list and include everything, including books, clothes, shoes, cutlery, bed linens, etc.
  • Bear in mind that there can be limits set for valuable items. If your possessions exceed the limits, make sure to create a separate list for them. Otherwise, you will not be able to make a claim that is over the standard sub-limit.
  • When it comes to your property, consider the costs of removing debris or complete demolition, architect’s fees, expenses for the materials, mortgage discharge fees, charges to comply with the council regulations, etc.
  • Make sure that these expenses are part of the sum insured amount, or if they are part of the coverage on top of the sum insured amount.
  • If you live in a flood or fire-prone area, consider purchasing extended or total replacement protection. Bear in mind that in times of wide spread disaster, the costs of building services and temporary accommodation will often increase.

Do you have other ideas on home insurance comparison? Share your insights in the comments section.

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What is Renters’ Insurance?

Most people want to live in their own home. However, not everybody can afford it. The common solution is to rent. There are many types of accommodation and they all cost different amounts.

While renting may be a smaller investment than buying your own home, it doesn’t mean that you don’t have to think about your possessions. After all, your monthly rent can be expensive over time, and your belongings also cost money, so you need to get protection against unforeseen events. That’s where renters’ insurance comes in.

So what is Renters’ Insurance? Here are some of the things that you need to know about it:

  • Renters insurance offers protection in cases of unforeseen incidents resulting in loss or damages to your possessions such as appliances, furniture and other pieces of equipment in a rental property. With this insurance, your belongings will be protected against incidents such as theft and fire. Renters insurance policies can likewise offer financial protection against accidental leakage. Other insurers offer coverage for your belongings during incidents of explosion, water damage, vandalism, as well as natural disasters.
  • Insurers vary on the coverage that they offer, so make sure to compare home insurance and see which one offers better protection for your valuables.
  • Renters insurance can also come with extras that protect valuables such as jewellery, clothing, accessories, electronic devices, and other items against loss, theft or damage.

With so many insurers offering policies, it is important to do some home insurance comparisons. Choose several insurers and look at their insurance offerings. Weigh the pros and cons of each so you can narrow down your selection. It’s important to work out what you need.

Do you want to have the standard coverage for your possessions? Do you have expensive collections  that call for insurance policy extras? Can you afford to get comprehensive coverage?

These are just some of the considerations when choosing insurance, whether for your valuables or your home. When in doubt, you can always seek advice from a qualified individual. Don’t be shy of asking questions so you will better understand the ins and outs of the type of insurance that you need.

Do you have other ideas about renters insurance and home insurance comparison? Share your insights in the comments section.

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Common Home Insurance Extras

It’s imperative to have insurance for things that are important to us, such as our home. This basic necessity usually costs a lot, but your home is an investment, so make sure to give it protection. This will give you peace of mind that if something unfortunate happens, you’ll have something to rely on. There are so many insurers out there offering different insurance products. To get the best deal, make sure to compare home insurance features from several providers, weigh their pros and cons, and choose what best suits your requirements.

While doing home insurance comparisons, you may come across policy extras. Don’t be confused with the term – they’re just as important as the policy itself. These are elements that you also need to take into account when you buy home insurance.

In this article, take a look at some common home insurance extras:

Landlord insurance

If you’re an investment property owner or someone who has properties for rent, this is suitable for you. This offers protection for your property from possible risks caused by your tenants.

Fire insurance

Whether you live in a bushfire risk zone or not, it’s essential to have this policy extra. Fire cover will protect your home and possessions in the event of a fire.

Accidental damage

Accidents can happen to anyone – anytime, anywhere, so when you compare home insurance, check your eligibility for accidental cover.

Flood insurance

If you have fire cover, it’s also important to have coverage in the event of a flood, especially if you live in a flood risk zone, or an area that has a body of water that can possibly affect your property.

Storm damage

With its strong winds, lightning, and flood potential, a storm can damage your property. Check with your insurer about this policy extra, especially if you live in a cyclone risk area.

Motor burnout insurance

This policy extra covers white goods or appliances such as air-conditioning units, washing machines, and refrigerators, as well as external equipment such as pool pumps and heating/cooling systems.

Checking the policy extras is a crucial step when you compare home insurance. Depending on your property needs, take into account the extras that will provide protection to your property from different events that can cause damage and destruction.

Do you have other ideas on home insurance extras and how to compare home insurance? Share your insights in the comments section.

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A Quick Guide to Home Business Insurance in Australia

With today’s internet technology, more people are starting home businesses. This can be attractive because there is no need to rent office space and you can save time commuting. Transactions are made in the comfort of your own home, and there is more privacy since less people are around.

But a common mistake for homeowners is to think their home insurance will suffice when problems involved in running a business at home arise. In fact, if you are running a business from home, you will need business insurance coverage.

There are many risks that a home-based business is exposed to

Home and contents insurance policies may not cover accidents, damage or losses that occur in running a home-based business. Household policies may not take effect should there be any legal liabilities resulting from operating a home business.

Home insurance may cover some businesses

But there are policies that are specially designed for small businesses. You must notify your insurer if you plan on using your home for business or commercial purposes. The type of insurance depends on the business you are managing. You have to compare home insurance policies to get the best deal.

There are insurance policies for home-based businesses

It is best for you to compare different providers before you decide on what’s best for you.  A home-based business must have the right insurance in order to protect you, your business and your home, considering the fact that household policies may not give coverage for business activities.

The following are types of insurance that you should consider when looking at insurance providers:

  • Public liability cover for your clients and suppliers that you transact with at home
  • Asset insurance for business equipment, inventory, tools, and office furniture
  • Workers’ compensation for employees who work from your home
  • Fire, storm, and theft cover for damage or loss of stock or any equipment
  • Professional indemnity insurance that covers your business in the event of service or product failure
  • Loss of income due to accident or illness
  • Costs that arise due to business interruption
  • Marine policy if you ship your products using freight carriers or post

Keep in mind that most policies do not provide cover for tools of trade, office furniture or computers that are used for your business. Talk to your insurer to better understand the ins and outs of home business insurance.

Do you have other ideas on how to compare home insurance and home business insurance? Share your insights in the comments section.

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Renewing your Home and Contents Insurance

It is very important to protect your home against any damages. Home and contents insurance are two different products that can give you peace of mind. They’re essential if you want to protect your assets and ensure that you’ll have something to depend on in case an unfortunate incident occurs.

You’ve spent a great deal of money on your home and possessions. It only makes sense to have them insured. You should shop around and compare home insurance being offered by different providers. Weigh the pros and cons of your options so you can get the best deal.

Renewing your home and contents insurance is an opportunity for you to see if you are still getting the best deal for your home and possessions. Bear in mind that personal circumstances and requirements change, so it’s better to do a thorough check on your home and contents insurance to ensure that you still have adequate coverage. Otherwise, it may lead to disappointment and inconvenience should you need to make a claim.

In some cases, insurers renew your insurance policy automatically. This can be done through direct debit to the transaction account or credit card listed in your billing details. Insurance companies take advantage of this since the convenience may be able to stop you from switching providers.

Again, this is fine if you think that the coverage still applies. Otherwise, it’s time to compare home insurance from several providers to get the best deal for you.

Here are some of the things you can do to ensure that your home and contents insurance is updated:

Create an inventory

Make sure to have a list of your valuable items, and keep it updated. Details may include the model and serial number of electrical items and devices, valuation certificates of pricey items, as well as photos of artwork, jewelry, and other valuable assets.

Take all home renovations and improvements into account

If you have major renovations or extensions that add significant value to your home, make sure to inform your insurer about it. These should be included in your coverage to update the sum insured.

Get two or three quotes

When it comes to home insurance comparison, it’s better to get three or more quotes from different insurers and compare their offerings. These include the level of cover, inclusions and excesses.

Got other ideas on home insurance comparison? Share your insights in the comments section.

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What can Home and Contents Insurance Cover?

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.

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Understanding Different Types of Household Insurance

Home is one of our major investments. It’s the fruit of years of labour and determination. Of course, we want it to last, so a lot of people choose to insure their homes. A household insurance provides that peace of mind, knowing that your property is secured in case any unfortunate event happens. The thing is, there are so many aspects when it comes to household insurance, and there are different types out there. That is why it is essential to compare home insurance and weigh the pros and cons. In this article, we’ve rounded up details that can help you understand the different types of household insurance.

Home insurance

This offers coverage for financial losses as a result of loss or damage to your property. In most cases, this type of insurance covers the main dwelling, garage, home improvements, as well as fixtures. If you have a home loan, your lender may ask you to get this type of insurance.

Contents insurance

As the name suggests, it offers coverage to your possessions in case of loss, theft or damage. It includes repair or replacement of certain contents of your home such as furniture, appliances, clothes, jewelry, and sports equipment.

Home and contents insurance

This type offers coverage for both the property and its contents

Landlord’s insurance

If you’re renting out your property, this may be the insurance for you. It covers financial losses due to natural disasters including fire and typhoons.

Renter’s/Tenant’s insurance

This is for those who rent a property. It offers coverage for financial losses on contents as a result of unfortunate incidents such as theft and fire.  Accidental damage to fixtures and fittings can also be covered in this policy.

Strata insurance

This type of insurance offers coverage for financial losses related to loss or damage to property which operates under a strata-title or title arrangement with several units.

Knowing the different types of household insurance is just one aspect when it comes to insuring your property. Bear in mind that insurers differ in the products and services that they offer. To get the best deal, make sure to do some home insurance comparison to see which meets your requirements. For terms that you’re not familiar with, you can ask help from a qualified individual so you will better understand how household insurance works and what can be covered.

Do you have other ideas on how to get the best home insurance? Share your tips in the comments section.

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Choosing the right home insurance policy

If people need life insurance, homes need to have home insurance. This offers protection in case your home needs some repair or rebuilding job. It also protects you against incidents that are beyond your control. These include damages from natural disasters. Home insurance varies depending on the coverage and the insurer. With several options to choose from, how can you get the best insurance? Here are some points to take into account:

Know the types of home insurance

Total replacement cover involves the cost of rebuilding your home. It also reduces the risk of being under-insured. On the other hand, sum-insured cover is more commonly availed as it allows the homeowner to decide on the set amount for the coverage, also called the sum insured.

Compare home insurance

Take note that low premiums shouldn’t be the sole deciding factor when choosing a policy, so don’t get the cheapest one you’ll find right away. Compare policies from various insurers and see what best suits your needs. Surely you’ll find one that also meets your budget.

Know what will be covered and what the exclusions are. Also, make sure to check if there are any caps or limits. You can likewise ask if the home insurance policy offers additional benefits.

The location of your home plays a role when choosing a home insurance

If you live in an area that is prone to floods, cyclones or bushfire, make sure that your policy covers these incidents.  Also, it is important that you have enough sum insured in case you need to rebuild your home after an unfortunate event.

Read and understand the contract

Insurance documents are usually very detailed and lengthy, so a lot of people don’t bother reading through each page. This can pose problems later on. Take time to read the contract carefully and ask the insurer about things that you don’t understand. You can also ask someone you trust to read the documents with you so he/she can better explain the clauses that you’re not familiar with. Feel free to ask about anything you’re unsure of.

Know how to make a claim

If there are any loss or damages, reach out to your insurer as much as possible and inform them that you want to make a claim. Provide all the information that they need and be honest with them. This will help in processing your claim. Also, keep records of documents that will support your claim.

Got other ideas on how to compare home insurance? Share your tips to get the best home insurance in the comments section.

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Landlord Insurance: How does it Work?

We all know by now that insurance is important. No matter what your health status or economic background is, it pays to get insurance that you can depend on in case an unfortunate thing happens.

There are numerous types of insurance, and one of them is landlord insurance. This insurance policy focuses on protecting the owner of the property from financial losses which are associated with rental properties. It can either cover both the property or building and its contents or just the property. Getting a landlord insurance protects you from damage and costly repairs of the property.

Here are some things that you need to know about landlord insurance:

  • A land insurance policy usually covers standard incidents. These include fire, lightning, earthquakes, typhoons, floods, explosions, escape of oil or water, subsidence, theft as well as malicious damage.
  • There are also policies that include accidental damages, terrorism, legal protection, vandalism, malicious damage by tenant, and rent guarantee insurance.
  • A landlord insurance does not usually cover possessions of tenants.
  • Since landlord insurance policies vary in coverage and other features, make sure to compare insurance providers to know which offers the best deal for you and your property.
  • Rent default may be the most essential factor to look into when finding the right policy. Check the coverage if it gives protection against loss of rent due to rent default, when a tenant was evicted due to a court order, is obtaining a hardship order or due to an unexpected death of a tenant.
  • Know when and how you can make claims. In general, insurers have 24-hour claim lines. Ask what information you need to provide so you can process your claim.
  • Check the extras and incentives. Some insurers offer policies that can include worker’s compensation, automatic indexation of the insured value, and tax audit insurance. Burnout of appliances and key and lock replacements are also extra elements that can be part of the policy.

No one can predict what’s going to happen in the next few months or so. Be prepared as early as possible to have some peace of mind and avoid inconvenience in the future. Look after your investment by getting a landlord insurance. Doing so will save you a lot of money, and when something unfortunate happens to your property, the costs will be one less thing to worry about.

Got other ideas when it comes to landlord insurance? Share your insights in the comments section.

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Things to Consider when Buying Home and Contents Insurance

Getting a home and contents insurance policy is one way to protect a home and possessions. It gives you a sense of security that you have something to mitigate your risks in case an unfortunate event occurs. It is important to shop around to get the best home insurance, getting the most value out of your budget. This does not always mean buying the cheapest insurance there is, as you need to ensure that your policy mitigates your risk as much as possible. So what do you need to look for? In this article, we’ve rounded up several things to take into account when buying home and content insurance:

Determine your needs and preferences

The type of home and contents insurance heavily depends on what you need and want to achieve. Assess the home that you want to insure as well as the factors that may affect the policy. For instance, premiums may be higher if your home is located in a flood-prone area. As for the contents, create a list of your possessions that you want to be covered by the insurance. This will make it easier for you and your insurer to come up with the right policy for your needs.

Compare home insurance

With so many insurers offering a wide selection of policies, one way to find the best one for you is do some home insurance comparison. Put their offerings side by side and choose the policy that fits your requirements. You can likewise use home insurance comparison tools in some websites to give you helpful insights so you can make a well-informed decision.

Understand the cover levels

These can be defined events or accidental damage. With defined or insured events, the policy will offer you cover for damages or loss due to incidents such as fire, flood, explosion, earthquake, tsunami, theft, vandalism, etc. On the other hand, accidental damage involving those that happen on your everyday life will be covered by the policy.

Know how much the policy will pay

Most policies are sum insured, which means that they will pay claims up to the amount indicated on the insurance certificate. There is also a safety net policy wherein the insurer will pay a specified percentage of as much as 30% above the sum insured amount, while a total replacement policy means the insurer will cover the costs needed for repair, replacement or rebuilding, depending on your exclusions.

Do you have other tips on how to compare home insurance? Share your ideas on how to get the best home insurance in the comments section.

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