Thinking of purchasing your first home? Then your head is most likely swamped with information on first home owners’ grants, lenders’ mortgage insurance, options with home loans, and how much deposit you need to save. Once you’ve secured your new home, it’s time to understand the importance of adopting a home and contents insurance policy to protect your property, along with its contents.
Home and Contents Insurance
Home and contents insurance protects some of the most important assets you own. The market for home and contents insurance is a busy one with insurers popping up left, right and centre to give you the best deal. It is important that you understand what you are buying to ensure the cover is appropriate to your needs.
What Is Building Insurance?
Often called home insurance, building insurance is put in place to cover the cost of repairing or rebuilding your home, in the unfortunate event of bad damage to the property. It is important that every year you review your building *sum insured as the cost of rebuilding homes changes regularly. The building sum insured should not include the value of the land. Customers will in some cases insure the building for what they have just bought it for or what they would sell it for which in most cases will include land value. The sum insured should represent a rebuilding cost in the event of a total loss.
What Is Contents Insurance?
The contents sum insured should also be reviewed regularly, at a minimum each renewal. We are all constantly buying new things be it clothes, furniture, electrical goods or even a new cutlery set. All too often, people only think of the big items such as furniture, electrical goods, whitegoods etc, and forget about the cost of replacing kitchen essentials as well as a new wardrobe should the worse happen.
Why Use An Insurance Broker?
An insurance broker can help you to identify the cover that is required. They will help you to navigate through the process from start to finish so that you have a clear understanding of what you are insured for. An insurance broker can also assist with lodging and managing claims if required. Not sure what level of cover you need? Contact the team of insurance brokers at Carbon; we’ve got you covered. Still in the process of purchasing your first home? Why not come along to our first home buyers’ seminar to learn your options when it comes to securing that home loan!
Common Terms: *Sums Insured: Sums insured is the maximum amount that your insurance cover will pay in the unfortunate event that your home is destroyed or damaged.