When comparing insurance policies it is often hard to see where the differences lie.
Importantly, it is not your insurer’s job to get you the best deal. Here are some essential rules you should follow before you choose.
- What does your policy cover?
Most will include your home and possessions for damage, theft and vandalism. Some may also cover for personal injury, liability and maybe even a hotel if you are temporarily displaced. It pays to check the details.
- What does your policy not cover?
Standard policies will have exclusions; including natural disasters, power failure and defective maintenance. If water leaks from an upstairs pipe, you are generally covered; but water leaking from below, such as a blocked sewerage pipe, generally isn’t.
- Shop around
Take the time to research before you choose. Read reviews and consider recommendations and ensure you know exactly what your commitment will be. It’s worth checking to see if insurer’s will match a competitors price and coverage or even offer discounts if you have more than one type of policy.
- Don’t wait to claim
Make your claim as soon as possible.Many policies will have a time limit on reporting claims. This can be especially important in water damage claims.
- Keep a record
Don’t rely on your memory alone to remember details. Keep receipts and warranties of everything you value. Jewellery, unless specifically noted, will usually only be valued up to a certain amount. It pays to regularly take photographs of rooms to ensure you don’t forget - this can be handy for artwork, furniture and electrical devices.
- Home Buyers’ Guide to Home Insurance ( fire.nsw.gov.au)
- Contents insurance – choose the right policy and cover ( moneyadviceservice.org.uk)
- Guide to choosing home insurance ( primelocation.com)