It’s a sunny day outside, birds are singing and everything is colourful. It’s hard to remember back to the storms of August, the trees that shut down our highways last year and the fires that might come through this summer. If you haven’t gotten your home insurance sorted out, now is a good time to look at how you can best protect your home in case of the unexpected. Drawn from a report on Choice and Reader’s Digest.
Insure The Full Value
Don’t get caught out if you need to rebuild entirely, only to be left out of pocket because you hadn’t insured the full value of the property. Check whether your policy is a total replacement policy, which means your property will be fully replaced, even if you were underinsured.
Defined Or Accidental?
Know whether your insurance covers defined events, such as a fire or storm damage, or also covers accidental damage, like leaving the car in neutral and rolling into the garage door (I’m not even kidding, you wouldn’t believe how many of my family members have achieved that one).
What Is Covered?
I’ve never felt insurers to be the most clear-cut of people around, so go through your contract with a fine-toothed comb. Like so many people in Brisbane, don’t get caught out by not being covered for water-related damage or flood-damage. What events aren’t covered by the insurance?
Some extras can be fantastic; I’m thinking of accommodation to be provided should you be unable to live in your house, the organisation of repairs, instead of just providing the money, and a commitment to buying goods at replacement cost, not taking into account depreciation.
How To Save On Home Insurance
Research and comparison are, as always, the best means to saving money on insurance policies. I’m a fairly cautious person, so I would always be more likely to invest money in premiums to ensure that my policy was a comprehensive one. It is possible to save money by agreeing to higher excess, but should only be done if you have the finances to absorb the excess should it be needed.
Everything in life can be negotiated and insurance is no different. Can they offer you a discount if you bring across extra kinds of insurance to them, such as your auto-insurance? Are there financial incentives for direct debit set-ups? It never hurts to ask, and every little bit of saving helps.