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Home insurance up for renewal?

Here are the top 3 things to consider

While it might ring true for some of us, many of us just want to be prepared for the ‘what if’s’ in life. And that’s why it’s well worth making sure our insurance really has us covered…
Here’s our rundown of the top 3 things you should check on your home insurance policy each year.

1. The sum of contents insured – is it really enough?
When it comes to the contents of our home, many of us underestimate the value of all of our stuff. In most cases, we make sure we have the big ticket things like our furniture, appliances, electronics and valuables accounted for, but we underestimate what it would cost to replace our other stuff – from clothing, to bedding, sporting equipment, cosmetics, and basics like cutlery and crockery.

  Tip
Each year when your policy is up for renewal, walk through your home and do a room by room calculation of what it would cost to replace everything in there. Don’t forget to account for what’s tucked away in cupboards and drawers as well!

2. The cost to rebuild
Would you believe that a whopping 80% of homeowners are underinsured according to the Insurance Council of Australia ?
There are many reasons for this. Sometimes it’s because we’ve based the amount on a guestimate or what it cost to build the home in the first place. Sometimes, it just comes down to good old inflation.
For these reasons, it’s important to reassess your rebuilding cover every year or two. It may even be worth getting an expert in to do a professional valuation. Or at the very least, using a building calculator like the one in the Insurance Council of Australia’s website will provide valuable assistance. (www.insurancecouncil.com.au)

  Tip
Once you’ve settled upon a figure, you might like to consider whether you want to add a bit extra to it. Why? If your home was completely destroyed there are likely to be other costs that you may have to pay for, like the removal of debris and architect’s fees.

3. What you’re covered for
They say the devil is in the detail – and this can really be the case when it comes to your insurance. What one insurer provides as standard cover, another may charge extra for. And then there are the limits on different parts of your cover. So the cheapest policy may not necessarily provide you with the cover that you need.
To help you navigate your policy, here’s a list of policy considerations to check out:

  • Flood cover – Even if you don’t live in a flood prone area, flood cover is worth having.
  • Accidental damage – Accidental damage cover can cover you for significant unexpected breakages, like damage caused by a picture falling off a wall or a broken TV. It can be a particularly good option if you have children!
  • Valuables that leave the house with you – You need to know whether you’re covered for the loss or theft of things like your tablet, jewellery, sunglasses, laptop and watch, when you’re out and about.
  Tip
Often, cheaper insurance policies will provide really limited cover for these sorts of things, which many people find isn’t enough when they have to claim, so check through the different limits.

Important information
This article provides general information only. You should seek professional advice when reviewing your policy. The insurance products and services offered as part of the Heritage Isle range are issued by QBE Insurance (Australia) Limited ABN 78 003 191 035 AFS License 239545. Before making a decision about your insurance needs please refer to the Product Disclosure Statement available online at hicu.com.au or by calling 03 6334 9411.