Author: The importance of home and contents insuranceIt is impossible to overstate the importance of home and contents insurance, particularly in Western Australia, where our long, hot summers bring about the threat of devastating and destructive bushfires.
It’s better to be safe than sorry
Insurance companies generally agree that up to 40 per cent of all homes are uninsured or significantly under-insured.
As is commonly the case after disaster strikes, you hear of people who have lost their home from fire or have it damaged by storm or ransacked by thieves, lamenting the fact they had neglected their insurance.
Insurance premiums have risen in recent years and this can impact on finances, however the risk of being uninsured is a far greater burden. Switching to regular monthly payments which combine both building and contents insurance can help bring down costs.
Choose your insurance cover wisely
Sometimes inappropriate insurance rather than inadequate insurance can be the bigger problem for people, and after reviewing their needs some households might shift from comprehensive to disaster cover.
This approach would not suit all households but can be an affordable alternative that results from a review of the homes insurance requirements. A review should consider what level of cover is required and the policy holder’s capacity to afford the premiums.
Another trap many home owners face is underestimating the value of their possessions. We recommend that once a year you make a general note of contents within your home and what they would cost to replace in today’s economy.
This would include things like;
◦shoes and clothing
Why not conduct an insurance review at your place this weekend? It will only take an hour and might save you a lot of grief.