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Choosing a home and contents insurance policy

11 Dec 13

One important piece of real estate advice that many home buyers may overlook in the excitement of purchasing property is the need for home and contents insurance.

As its name implies, this type of cover is geared toward protecting homes and the possessions inside them.

As recent disasters in Australia have made all too clear, homes and their contents can be destroyed in the blink of an eye. This makes it essential to have proper cover in place.

Home and contents insurance typically provides cover for damage caused by fire, storms, lightning, earthquakes and flood. Policies can also provide cover for non-natural occurrences, such as theft and vandalism.

Different policies provide protection for different issues, so it's important for individuals to consider which policy best suits their needs.

Calculating costs

Nobody wants to pay too much for insurance cover, but it's also vital not to be underinsured. One way consumers can ensure they have the right amount of coverage is by using a free online calculator intended to determine how much insurance is necessary based on an appraisal of a home and its contents.

These calculators can be found all over the web, including on the official website of the Insurance Council of Australia.

When using these calculators, it's important to be honest about the costs of possessions in order to come up with an accurate number regarding coverage required.

Shopping around

As with most things in life, it pays to shop around for insurance cover. Simply opting for the first policy offered is not a smart way to save money on home and contents insurance.

Consumers should compare and contrast different policies from different providers until they find one that is not only affordable, but more importantly, suits their specific needs.