We think you’ll agree that a house is not just a house; it’s a home and is made up of so much more than the four walls. So you’ll be surprised to learn that according to the Australian Bureau of Statistics, about 1.8 million Australian households have no house and contents insurance – that is 23 per cent of all Australian homes. Sometimes things happen in our lives that are not in our control – think damage from natural disasters like storms and bush fires.

It’s always a good idea to prepare for the worst and protect yourself against these incidences that are all too common in Australia with a home and contents insurance. With Home and Contents Insurance, you can tailor your home insurance to suit your unique needs and budget so you can enjoy the peace of mind in knowing that the things you hold near and dear are protected. Ahead of choosing a new policy (or if you’re considering changing policies) here’s what you need to know:

What do you want covered?

Home and content insurance are actually two different products. You can buy insurance for just your building, or just for your contents (belongings in your home). You can also combine both.

Building: Protects the house and its fixtures. If the building is damaged or destroyed, this should cover the cost of repair or replacement. This is essential for homeowners but not renters as this is the landlord’s responsibility.

What are the types of cover available?

There are generally two different cover available:

Defined events (also called insured events): All policies will offer you cover if your property is damaged or destroyed by events like: fire, theft, storm, explosions, flood, earthquake, tsunami, storms, lightning strike, vandalism, or water damage from burst plumbing. Any event not mentioned on your policy is not covered.

Accidental damage: On top of defined events, some policies will cover you if your home or contents are damaged by accident. This is a more comprehensive cover option as it insures a much wider range of circumstances.

Sum-insured cover: provides for rebuilding, repairing or replacing a damaged home or its contents at their replacement value. It is your responsibility to nominate a sum insured that is sufficient to replace them. For your home this includes any improvements to the home that may contribute to the costs of rebuilding, and any additional costs associated with rebuilding, such as site works and access restrictions. The services of a professional valuer or building contractor may assist you to determine your home rebuilding cost.

Many policies also offer a safety net option in case you under-insure your home and contents. A safety net policy will pay a specified percentage above the sum insured amount.

See full story at www.bendigoadvertiser.com.au