Why you should seriously consider insuring your home

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.

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?

The right 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 the right 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 the right product for your needs, at the right price.

iSelect can help you find a policy that meets your needs and fits your budget. Compare policies now or speak to one of our qualified home and contents insurance consultants on 13 19 20.

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.

It’s worth consulting a home and contents insurance specialist to determine the level of cover that’s right for you. Compare policies now or call iSelect on 13 19 20 for assistance to find the right level of home and contents insurance cover to suit your needs.

What about peace of mind?

So ‘peace of mind’ sounds a little corny, but when you break it down, home and contents insurance lets you sleep easy, confident in the knowledge that you and your family are covered should the worst happen (and let’s hope that day never comes).

iSelect does not compare all products in the market. Not all products are available at all times. Any advice provided in this content 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 we give you, having regard to your personal situation, before acting on our advice or purchasing any product.

Source: https://www.fos.org.au/custom/files/docs/cgc-20142015-industry-data-report.pdf