Once you have found the right mortgage broker and the right home loan for a home in Baldivis, Rockingham or Kwinana, you will have to think about finding the right home insurance for your particular situation. There are a lot of factors involved in choosing home insurance; you need to match up the kind and amount of coverage that is best for you with the offerings of various insurance companies.
Most insurance products are aimed at broad segments of the population, so it does take a bit of work to customise a policy that is correct for you. Here are some tips to help you buy home insurance that fits your needs.
Are Your Valuables Covered?
Many policies have caps on the amount that they will cover your valuables for. For example, jewellery, electronics or musical instruments may be capped at $5,000. If you have any items that are more valuable than the limits, you will need to have the policy adjusted or insure them separately.
Long Vacation on the Horizon?
If you leave your home empty for too long, it could void your policy. If you are planning a long trip or you are a FIFO who is gone for extended periods of time, you definitely need to find out how long you can leave your home vacant. Most policies allow a maximum of 60 days. Many companies will allow you to request extra cover.
Insurance companies see it as the owner’s responsibility to keep pests such as termites away. Consequently, termite damage usually isn’t covered, so you should keep your home protected from termites and other pests that can cause deterioration.
Most insurance policies have restrictions on the kind of flooding they will cover. It is your responsibility to understand exactly what is insured and what isn’t. If you live in a flood area, make sure to find an insurer who will cover flooding. You may have to pay extra but it is essential that you are covered.
Do You Have a Home Office?
If you have a home office, you will need a separate policy to insure your business equipment.
The Information Age is Your Friend
You need to do your due diligence when looking for insurance. Luckily, you have a world of information at your fingertips. Use the Internet to shop around and see what options are out there for you. Not only can you find out what company is best for you, but you can also find some bargains. Some offer lower prices for shopping online. You can also lower premiums by paying a higher excess and through multi-policy discounts.
Some policies cover pet damage; some don’t. Some that don’t cover it in your homeowner’s policy offer pet insurance to their homeowner’s insurance customers.
Read and Understand Your Insurance Policy
Whether it’s a home loan or a home insurance policy, you must always read it all the way through and understand it. If you don’t understand it, you might want to hire an attorney to ensure that everything you need covered is covered. You don’t want to find out after something has already happened that it won’t be compensated.
Make sure that you understand exactly what is included in your policy and what isn’t.
Your home and contents are insured separately. Home insurance usually covers your building and any improvements to the building against theft, fire, storm and other damages. If you want your personal belongings and furniture covered, you must have contents insurance.
You can combine these with most companies as Home and Contents Insurance.
From 2011 to 2012, insurance policy prices rose from 17% to 24% depending on the insurance company. From 2012 to 2013, the increases have been from 1.2% to 7.4%.
In WA, the average increase in building insurance for a $500,000 home was 7.6%, while the largest increase by any company was 57%. The average increase for insuring $150,000 in contents was 2.55% but the largest individual increase was 161%.
The trends here are that building insurance is more stable than contents insurance and that you can really gain a lot by shopping around.
Wrapping it Up
We hope this piece has been helpful. A home is usually the largest investment an individual or family will make in their lifetime—it makes sense to protect that investment. Insurance is still a relative bargain; it doesn’t really cost a lot more to make sure that your assets are protected. Do your due diligence.
To talk to a mortgage broker about a home loan in the Kwinana, Baldivis or Rockingham area, call (08) 9527 1800 today.