Your home is probably your most expensive asset, so what happens if there's a fire, cycle or storm? What if someone breaks in and steals your jewellery, television, or other valuables? It's easy to think these things won't happen to you – until they do. A robbery or severe damage to your home can be a serious financial setback without homeowners insurance.
A home insurance policy will cover the cost of repairing or replacing your home and its contents following damage caused by fire, smoke, water, theft, vandalism, a storm, or some other event named in the policy, called a "peril." In addition to your main home, outbuildings like a garage are also typically covered. Personal property stored in your home that's stolen or damaged will be replaced, and home insurance will also pay legal and medical costs if a guest is injured on your property. Finally, home insurance will pay your living expenses if you have to move out of your home because it has become uninhabitable due to a covered event.
How to Choose the Best Homeowners Insurance Policy
Although home insurance may seem complicated, it's actually fairly straightforward. To choose the best home insurance company and insurance policy, first determine the value of your home and its contents, and then select a company and policy that provides the coverage options you need at a reasonable price.
Take the following steps to purchase homeowners insurance:
Decide what you want to insure. A standard homeowners insurance policy may not cover valuable jewellery, artwork, or other collectibles. Likewise, if you have a trampoline, pool, or something else on your property that raises your liability risk because it poses an increased risk of injury or death to others, you may need additional coverage. And if your area is flood-prone, you'll probably need flood insurance from your home insurance company. Similarly, if you live in a cyclone or storm surge region, you will need additional insurance to cover related damage.
Determine how much home insurance you need. Take an inventory of all of your personal belongings. If you have receipts, file them away. Use this information to decide how much coverage you need for your home. Determine how much you might spend on a hotel, meals out, and other living expenses if your home was destroyed or became uninhabitable after a loss.
Choose Smart. Choosing the right homeowners insurance company requires finding an insurer that sells policies with the coverage and other features you need at an affordable price. Click here to use out exclusive Insurance Broker partner to do all the homework and provide advice on the best policy for you at the best price. They will lock your insurance and take care of all the paperwork.
Your Choice Mortgage Brokers Pty Ltd ATF Halo Innovation Trust trading as Heart Mortgage Services - Australian Credit Licence 38643. The information contained herein is of a general nature only and does not constitute advice. You should not act on any information without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances. The views expressed here are not ours. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties who are not related to us. These links are provided for convenience only and do not represent any endorsement or approval by us.