September 21, 2018

Why Is It Important to Have Home and Contents Insurance?

Everybody dreams of having their own home, and once you finally achieve your ultimate dream, surely, you’ll do anything to protect it. With all the important bills to pay, you might probably think that you don’t need a home and contents insurance. But have you thought about environmental factors, robbery, and vandalism? Do you want to spend your emergency funds for those scenarios?

Here are some reasons why having a home and contents insurance is important:

  • Home and contents insurance can cover some/most of the costs due to natural calamities, robbery, etc. That is why a lot of people insure their house and even almost all the things in it; they want to protect their property.
  • Did you know that home insurance can sometimes cover liability if an accident occurs within your property? Home insurance can cover you from liability of others injuring themselves on your property. 
  • If anything happens to your house or was totally wrecked, the bank will lose money so if you’re still paying your mortgage, it is usually compulsory to have a home insurance as a condition of your home loan.  

Homeowners, renters, and even people living in shared houses benefit from contents insurance. If you own a house, it is important to have the building covered by insurance. On the other hand, you don’t have to think about the coverage of the insurance if you are renting the place. Let the owner handle it.

Insured events offer to cover insurance for damages caused by unexpected or unforeseen events. Examples of unexpected events are severe storms, gas pipe leaks, earthquakes, lightning strikes, and landslides. On the other hand, accidental damages vary in types and are commonly caused with human intervention.

The insurance policy amount is presented by the sum of the total amount to repair or replace the building or house. Under the home and contents insurance coverage, the value of the house and its belongings are separated.

Other costs are applied on worst case rebuilding scenarios. If the house or building needs to be fixed from scratch, the costs to pay the architect, temporary accommodation, and demolition will be considered on top of the initial policy coverage.

Got other tips on home and contents insurance in Australia? Share your ideas in the comments section.

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