Protect my First Home

Your home protection

A home is one of the greatest assets of an individual and a family. But, how would you protect it from harm and retain it the way it is? You ought to protect your home from burglars, natural disasters, and several unpredictable personal circumstances. But, how can you do that? What if your house in broken into and its contents are lost? What if the home is hit by floods or any other natural disaster? What if you lost your job and are clueless about how to pay your home mortgage? Well, here is where home protection (insurance) has its role to play.

By choosing the most appropriate insurance for your home & possessions is very important. This article explains the different types of insurance in relation to home and contents and how you can decide between several policies.

Choosing a good home insurance policy

Home insurance seems to cover the cost of rebuilding / repairing your home. Furthermore, it helps protect you against the things that are really out of your control including damage from natural disasters such as storms and bushfires.

There are two different kinds of home building insurance. It is up to you to decide on which suits you best.

• Total replacement cover– It includes all costs required to rebuild your home exactly to the standard the home was prior to the event; hence, you don’t have to worry about any deficit between the total cost required to repair / rebuild your home & the amount you are actually insured for. While total replacement policies bring down the risk of underinsurance, only a few insurers provide these policies.
• Sum-insured cover– This is more common and covers you up to a specific amount to repair / rebuild your home. And, this set amount is called ‘the sum insured’.

Check what your policy covers and doesn’t cover

Home insurance policies vary between insurers and sometimes even between home insurance ‘brands’ provided by the same insurer. In order to determine the best insurance cover for your home, explore what exactly you are covered for with every policy and what you aren’t covered for.

Well, you can get to know this on the home insurance product’s key factsheet which will generally be on the website of the insurer. Or you can ask your insurer to send you a copy. From the factsheet, you can get information regarding the policy that includes what you are covered for and what you aren’t covered for.

Don’t just compare price

While shopping around for the right home insurance policy, it is crucial that you don’t just compare the rates of policies. You must also compare what exactly is covered & what is excluded as well as check whether or not the policy provides any additional benefits. This is a great way to reduce risk of underinsurance.

The bottom line

Your home & its contents are not just assets for you; they are more than that. To attain peace of mind with regards to your property, it is imperative that you get the right insurance policy to protect it.