It is needles to mention that a home comes in different sizes and shapes, from multi-million dollar mansions to one-bedroom apartments. Irrespective of its grandeur, it will still remain your ‘Home sweet home’. A homeowner will be particularly unfortunate if he loses his home and the contents of his home to a disaster of which he has no control. If you don’t have a homeowner’s insurance policy, you will soon be bleeding with hefty bills during the event of a disaster. But the ultimate doubt is how you can put a price of your home for reasons like insurance?
In Australia, underinsurance is very common as 30% of the home owners and 68% of renters don’t have any form of contents insurance. The ICA or Insurance Council of Australia says that more than 45% of the homes are not insured for their contents and home with a policy which just covers 90% or less of what can be required for rebuilding.
Home insurance – What is it?
This is usually an umbrella term which is used to mean 2 separate types of insurance:
- Building insurance which insures all the permanent fixtures and other bathroom and kitchen fittings
- Contents insurance which insures all the things which are kept in the home like TV, furniture and other personal items
While you can invest in getting both kinds of insurance or you can also speak to your insurance company so that they can give you a joint policy which is called home and contents insurance – iSelect.
What is contents insurance and how much should you get?
The content insurance covers damage or loss for all the other things in your home which are not a part and parcel of your building structure. According to recent reports, the average contents insurance policy will cost you around $140 in a year. Here are few things that the contents insurance will cover.
- Electrical goods
Several policies offer separate levels of coverage but in general, you will always be covered against fire, theft and flood. It is usually optional to get accidental damage cover and hence you shouldn’t assume that it’s included within the policy. If you get the coverage for personal possessions, you can cover items which include:
- Mobile phones and
There are few insurance policies which can cover you when you move abroad and hence if you damage your possessions when you’re away, you can claim for them on contents insurance.
What is not covered through content insurance?
Just as there are different policies which don’t cover everything, contents insurance will not include the following:
- Wear and tear
- Damage to a laptop or a computer caused by virus
- The structure of the home like the roofs and walls (as they’re covered by building insurance policy)
Therefore, when you’re wondering about getting home and contents insurance policy, you should be taking into account the above mentioned facts.