11th January, 2018 | 3 minutes
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Why you should seriously consider insuring your home

by Cathy Wever
Insurance Geek

With living costs heading north, finding the money to pay for home and contents insurance can seem like a waste of time. After all, what are the chances you’ll ever need to make a claim?

Turns out, as suggested by The Australian General Insurance Industry Data Report that more than 3 million insurance claims are lodged in Australia each year – and most of these claims are made on personal policies such as home and contents. That’s a lot of homeowners who’ve experienced adverse events and are recouping their costs through insurance.

From theft to flood to fire, home and contents insurance covers you for things you seriously hope will never happen – but the reality is that they sometimes do.

Why you should seriously consider insuring your home

What is home and contents insurance?

Home insurance and contents insurance are two types of insurance policies that are commonly bundled together and called, ‘home and contents insurance’.

Home insurance covers the structural components and rebuilding of a property, while contents insurance covers the items and fittings inside a property (think clothes, TV, computer, furniture and so on).

What sort of cover do I need?

An appropriate home and contents insurance policy for you will depend on what level of financial assistance you think you might require, should you experience the misfortune of having your house burn down or your possessions destroyed by flood waters for example.

For many Australians, finding the cash reserves to re-build all or some of your home simply isn’t possible – hence the appeal of an insurance policy that will bear the financial burden for you.

But isn’t home and contents insurance expensive?

Actually, the cost of home and contents insurance policies vary considerably. A basic policy can be very economical, particularly if it’s a ‘defined events’ policy, which covers you only for a specific list of events. An ‘accidental damage’ policy may be a little more pricey but offers more comprehensive cover that applies to a wider range of events.

Remember, choosing suitable home and contents insurance policy is about more than just finding the cheapest option, and you don’t want to find yourself under-insured. As well as a competitive premium, you need to make sure you select a suitable product for your needs, at a suitable price.

Why you should seriously consider insuring your home

What cover do I actually need?

Every home and contents insurance policy is a bit different. You may have precious contents you want itemised on your policy or your home may require extra cover for bushfire or flood risk.

iSelect does not provide a comparison service for home and contents insurance. We provide a click through arrangement instead. We receive a commission for each product sold through our partner’s website or contact centre.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect on the website is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any product through our partner’s website. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect.

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