Home insurance plans are no longer a luxury in life, they are a requirement. Costs of replacing, or rebuilding, are astronomical so most of us would not be able to build or replace. If you happen to have a loan your lender will require a set amount of insurance to help secure the loan. They need to protect their investment, the same as you.
It is never a promising idea to just snatch up the first policy that an agent offers to you because it may not match your needs. Let us look over a few things that you should check for and be aware of.
- Read-You need to make sure that you read the entire contract, including any small print. This is the only way that you will know exactly what you are getting. If you have any questions make sure that you either ask them, or you look answers up on the company’s site. You will want to know if there are any exclusions, hidden charges, or add-ons that you do not need. You should only pay for what you want, and nothing more.
- Compare-This is the single most important thing that you need to do. Get online and compare policies through an online platform that does all the leg work for you. Whether you are looking for home insurance, car insurance, or life insurance in Australia you need to compare as many carriers as you can. No policy is the same, and the companies that offer policies are not created the same.
- Excess-The higher you set the excess amount the lower that your premium payment will be. Change the standard amount on the policy to one that fits your specific financial position. Just keep in mind that the higher your excess amount is, the more money that you will have to pay out of pocket. You will want to have a budget written down so you know how much you can afford to pay. From there figure out how much you are willing to pay if something should happen and set your excess amount accordingly.
- Discounts-Some agents will offer discounts for how you live, were you work, and what clubs you are a part of. They will seldom offer these discounts unless you ask, so speak up. If you are using an online platform there will almost always be an option to speak to a live agent to ask. If not, talk with the bot and push until you can talk to an actual human being.
- Coverage-You want to make sure that you have the coverage amounts that you need. Do not go with what your agent offers, or what the platform states you need. An itemized list of all your valuables would be helpful, as would a list of materials used in your house if there are any out of the ordinary building materials, such as an oak stairway that has a carved banister.
- Liability-One add-on that you should have is liability insurance. This will cover you against any injuries that happen on your property. Whether you think you need it or not, you need to have at least $100,000 in coverage. If a salesperson comes up to your door and falls off the stairs you would think that it is their problem, but the fact is that since it happened on your property you are responsible for all damages, physical and mental.
Getting a good home and contents insurance policy is no longer a luxury that some of us have. It is a necessity that we all need to have. Even if you rent or lease you should check into the coverage types available. It is like the old saying goes, “It is better to have it and not need it, than to need it and not have it.”