Understanding your contents insurance

Our possessions are valuable whether we own or rent. Insuring them with the right level of cover offers peace of mind and less financial stress if you have to replace damaged or stolen belongings.

Here are some things you should consider when you are buying or reviewing your contents insurance.

1. Increase your home security
Increasing the security of your home may reduce your home insurance premiums. For example, if you install an alarm system, store your valuables in a safe, or upgrade your locks, you may be able to talk to your insurer about reducing premiums as these kinds of measures may deter thieves.

2. Keep an inventory of your items
Do you know exactly what you have in your house, and how much it’s all worth? Taking an inventory of your contents and updating your policy contents sum insured to reflect the replacement value of your belongings can help you to ensure that you have adequate cover for your contents. You can also use a home contents calculator from your insurer to assist you in estimating how much your contents are worth.

3. Consider a higher excess
The excess is what you pay towards a claim if and when something goes wrong. What you may not know is that your excess directly affects the cost of your premiums.
For example, if you can afford a $500 excess and agree to this rate, your premium may be lower than if the excess was only $100. For those who can afford to pay it and think the risk is worth it, this may be a way of reducing your premiums.

Make sure you weigh up the cost of a higher excess should you need to claim against the benefits of lower premiums.

4. Talk to your insurer
You may even be able to talk to your insurer and ask what exactly you could do to bring your premiums down.
Your living arrangements, location and the type of contents you own can affect your insurance premium. Simply give your insurer a call and talk through each aspect to see what you can change to result in savings.

5. Legal liability
What would you do if you accidentally injured someone or their property and they decided to sue you? Did you know that with some contents insurance you automatically receive legal liability cover? This cover is designed to protect you against claims for compensation for which you become liable to pay for either personal injury to a third party or for loss or damage to a third party’s property.

Remember to read the Product Disclosure Statement to see what you would be covered for – not all policies offer the same level of cover. For any other questions, call us on 13 25 85 today.