Moneysmart, which is a section found on the government website, states that when looking for a home and content insurance make sure that it will cover the number of your belongings that you are not able to replace on your own. This means that before actually digging into searching for a policy, you need to sit down and make a list of your belongings. Now itemize it down to items that you can replace on your own, such as bedding and dishes, and items that you cannot replace, such as coin collections and antiques.
Once you have the list of items that you need to cover add their values up so you can come to a dollar amount that you will need to be covered. Now start comparing policies through an online portal such as iselect or call every agent that you feel might be a good fit for you and your items.
- Replacement-Some policies will cover the cost of the item at the time of the claim, while others will cover the cost of replacing it. Check with the agent, or read through the policy, and see which way it covers. This can make a huge difference when you factor in how old the items are. For instance, if you have a refrigerator that is 10 years old, it has depreciated to the point of having an actual value far below what it would cost to replace it. But if you have a valuable coin collection, it would be better to get a replacement amount of the current value. So, the type of insurance that you need rests on your specific needs.
- Accidental Damage-Most policies do not cover damage that is caused by an accident. If you spill red wine on a white carpet, it will not be covered by a basic policy. You will need to add this type of coverage onto a home and contents policy to have this coverage.
- Exclusions and Limits-A policy may have small print, or riders, or clauses that will exclude certain items. The plan could also add limits to your items. Make sure to read through any of these that have been included in the policy contract. If the limits are lower than what your items are worth, the policy is a waste of time.
- Area Specific-Make sure that your policy covers area-specific possibilities. If you live within a flood plain, make sure you have coverage against floods. Earthquake-prone homes need to be covered for them in case anything gets damaged during one. Research if you are new in the neighborhood and make sure your agent covers the circumstances that could happen in your area and the surrounding areas that could affect you.
- Excess-Your premium usually can be adjusted up or down. This will lower the monthly premium that you will have to pay, but it raises the amount that you will have to dish out if damage or theft happens. Decide what you can payout, along with the items you selected to cover yourself and adjust the excess accordingly.
Finding a home content insurance policy may seem like a lot of work, but you have worked hard to get your belongings. You do not want to have to start completely over if something should happen.