Home and Contents Insurance is an important consideration for home buyers/owners.

A loss where there is no insurance, or under insurance at best, can cause significant financial hardship.  Funds that were earmarked for other purposes may have to be redirected to replace or repair property.

When buying or renewing insurance policies, take the time to ensure that the policy you are getting provides adequate cover for your needs.  Also make sure to re-calculate your level of insurance at the time of policy renewal to avoid being under or over insured when the time comes to make a claim.

Some questions to ask your Insurer:

• What does my policy cover and what is excluded from the policy?
• Does my policy cover accidental damage?
  There are basically two types of policy available, those covering  specific defined events and those covering accidental loss or damage.
• Does my policy provide new for old cover?
  Most policies replace or repair lost or damaged property to the condition it was in when new while others may replace property with that of equal value and condition of the property at the time it was lost or stolen.
• What can I do to minimise my risk of under-insurance?
  Policy holders can minimise their risk by:
  -  Checking the cost of rebuilding the property with a builder or professional valuer, taking into account the cost of demolition, debris removal and architectural, engineering and council costs associating with rebuilding.
  -  Doing a room-by-room inventory of contents and calculating how much it would cost to replace existing contents with brand new items.
• What goods need to be specified under the policy?
  For example, jewellery, art, antiques or other valuables over a certain amount - such as $1000 individually or in total - may need to be specified to ensure they are listed on the policy.  An additional charge on the premium may apply to very valuable items or they may need to be insured under a separate policy.
• What if I take my valuables off the property (eg engagement rings, cameras, laptops)?
  Most insurers offer Australia-wide valuables cover for a small additional premium.  Check with your Insurer for further details.
• Does the cover policy offer other additional cover?
  If you are seeking a specific type of cover, eg accidental damage or fusion, ask your insurer.

An Insurance Tip:

• Don't shop on price alone.
  You may find you're not adequately covered, as different policies cover different things.
  At the end of the day, it could mean the difference between being able to rebuild your home and replace your possessions entirely, or not.