At Household Insurance we make it simple to compare custom quotes from over 40 different brokers, no matter what kind of property you own.
Whether its a listed property, a thatched roof or even if its in a flood prone area we can provide accurate, personalised quotes from multiple brokers saving you the time and effort of ringing around for the best quote.
Protecting the investment of a home or all your worldly goods if you’re renting a property is paramount. However, all too often people rush into purchasing the first policy that they’re presented with without having done any research or comparisons. This guide will illuminate the most common details surrounding home insurance.
There are two main types of home insurance: buildings and contents insurance.
This type of coverage primarily protects the structure of your house including any permanent fittings and fixtures. This type of insurance can also cover greenhouses, sheds, barns or other outbuildings. It also covers glass in windows and doors as well as underground cables, pipes and wires.
If you plan on renting out your property it is advised that you notify the insurance provider as this may have an affect on the kind of buildings insurance you receive or it may affect the price. Always have sufficient coverage in case tenants cause more damage to the property than the cost of the deposit will cover.
Contents insurance will cover and protect any non-permanent belongings or items in your home. Items covered include: clothing, furniture, household goods, electrical items and many more. Some items such as fine art, collectibles and costly jewelry ought to be covered under an additional policy as most standard contents policies will not assign a fair market value to these kinds of items.
Some policies for contents insurance offer to cover the cost of a new replacement despite the age or condition of the original but the standard offer is to cover a percentage of the purchase cost after deductions have been taken for depreciation.
In addition, some companies will cover personal goods that are destroyed or stolen while out of the home. These would be items such as laptops, cell phones, wallets and luggage. A full list can be obtained from your insurance company if you feel you need this extra protection.
Buildings and contents insurance policies include basic, broad or special coverage. Both basic and broad coverage typically protect against vandalism, theft, fire, storm damage, lightening, water damage from burst pipes or sprinklers and smoke damage.
Basic and broad coverage protect against any specifically named types of damage. If it isn’t listed, then it’s not covered. In addition to protection from the basic perils, broad insurance also protects against falling damage such as a falling trees, ice or snow damage and accidental water damage. Special coverage indicates that unless a type of damage is specifically mentioned as excluded, then it will be covered.
There are several additional covers offered by insurance companies that either come as part of the standard package or as an optional extra which may come with an added cost.
Some of these options include:
• Freezer Contents – Should the contents of your freezer be ruined due to an insured event then your costs will be reimbursed up to a pre-determined amount.
• Accidental Damage – This coverage will protect against accidental damage done to electronic equipment, appliances or other items as pre-determined on the policy.
• Home Emergency – This coverage will help defray the costs of having a repairman come to your home in case of loss of an essential service such as power or plumbing.
• Locks – Some policies will cover the cost of replacement locks should the keys to your home be lost or stolen.
Included in nearly all home insurance policies is a medial and liability clause. This protects the owner of the property from having to pay damages that result as a result of negligence on the part of the owner.
Medical coverage covers the medical costs that might be incurred should a guest be hurt on your property. In addition, if something from your property should damage a neighbor’s property such as fire or a falling tree, then this coverage would protect you from any liability.
Once you’ve determined what kind of policy or policies you’ll need, the next step is to gather some background information on your home and contents so that when you apply for a quotation you have all the necessary details. Some standard pieces of information that will be required are:
• The value of the property
• Proximity of large trees or bushes
• Proximity to water such as rivers or lakes
• Building materials used in the construction of the home
• The age of the property
• The kind of home (detached, flat, townhome etc.)
Giving honest answers to the questions asked will save you hardship and money down the road. If it was determined that you gave faulty information on your policy then your claim can potentially be denied. That being said, the value of the property should be covered to one hundred percent because most policies will allow for an extra amount to cover miscalculations or increased costs.
The insured value of the home is based on the value of the property, otherwise known as the market value. The insured value is based on the cost to replace the home from the ground up if necessary.
If you’re building or purchasing in a flood prone area, be honest! It may cost a little bit more now but the result of having a claim for flood damage denied because you didn’t want to pay a little more on the premium can be financially devastating.
The exess (or 'deductible') is the amount of money you will pay out of pocket should you need to make a claim. Typically, a higher excess results in a lower premium. Have your insurance company run different deductible scenarios when preparing quotations and pick the one that best fits your needs. Keep in mind that you will need to come up with the cost of the deductible before the company will file your claim so make sure you can afford it!
Always read the fine print of a policy before purchasing it. It may seem like common sense but many times this extra effort is neglected. Always be aware of what is and isn’t included on your policy so that you are educated in case you need to place a claim.
Once you’ve compared the policies from several different companies and ensured that you’re getting both a competitive rate and have applied for as many discounts on that policy as possible, accept the policy, begin making payments on the premium and rest assured that your home and your belongings will be well protected.
