Tips for understanding your home and contents insurance
As far as investments go, a house is a once in a lifetime opportunity so you’ll want to make sure you have good home and contents insurance. It’s important to protect your asset, but there are ways to do that without breaking the bank.
One way of reducing the premium you pay is to increase your home security.
Fitting your home with security measures like an alarm, deadlocks on the doors and lockable windows will make your house less at risk of being broken into. You may also wish to protect your home against other risks such as fire. Smoke alarms won’t necessarily impact your insurance premium, but they’re always a good idea.
Getting the lay of the land
Your home insurance premium isn’t just influenced by security features. It is also impacted by the area you’re buying a home in. It’s useful to understand natural hazards that may affect your area, such as flood and bushfire. This isn’t necessarily going to change where you decide to live, but it’s important to understand how these factors may impact your premiums.
Making accurate estimations
When you get a quote for home insurance, it’s important to accurately assess how much cover you need.
Most insurers offer online calculators to assist you in estimating how much insurance you need. Alternatively, getting a professional building valuation can help you understand how much it would cost to rebuild your home in the event of a total loss, while a financial professional can help you work out how much contents cover you need.
Underinsurance is a big issue nationally – this is where people do not have adequate insurance in place. This can arise because people have genuinely underestimated the full replacement value of their property – or it can be as a result of a conscious decision to try to reduce insurance premiums.
Underinsurance can leave you in severe financial hardship should the worst happen, as you can end up of pocket in the event of a claim.
Whether you’re a little bit clumsy or just really unlucky, your claims history could affect your insurance premium.
Beyond Bank believes your home is your castle, and your most valuable assets should be protected. You can take these tips into account when considering home insurance. You can get a quote or start an application for home and contents insurance by clicking here.
Community CPS Australia Limited ABN 15 087 651 143 AFSL/Australian Credit Licence 237856 trading as Beyond Bank Australia arranges home and contents insurance as agent for the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708. We do not provide any advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision please consider the Product Disclosure Statement available at the Beyond Bank website.
If you purchase home and contents insurance, we will receive a commission that is a percentage of the premium. Full details are contained in our Financial Services Guide which is available at www.beyondbank.com.au/about-us/disclosures/financial-service-guide.html