Undoubtedly, a house is one of the most important assets we will ever own. Despite the significance a home plays in our lives and that of our family, alarmingly many homeowners lack adequate financial protection for their property and possessions.

Research shows that almost 29 per cent of homeowners don’t have a home and contents insurance policy in place and as many as 40 per cent are underinsured in some capacity.

Not only does having home and contents insurance give you peace of mind, it ensures you are suitably prepared for any accidents, natural disasters and even something as inconvenient as accidentally dropping your phone in the toilet!

Preparation is key when it comes to protecting your assets which is why life admin experts, iSelect have shared five handy tips to consider when sourcing a home insurance policy to suit your personal circumstances.

1. Value

Ensure your policy accurately reflects the value of your home and the contents of it. One of the biggest mistakes homeowners make is opting for a policy with a low premium that doesn’t necessarily cover all items and overlooks minor things such as accidental damage – so be sure to check the fine print and understand what is covered.

2. Savings

Explore whether your selected provider offers any discounts and reduced premiums due to added security and safety measures, such as alarm systems and smoke alarms, that you may already have in place. Some insurers even offer multi-policy discounts by bundling home and contents with another insurance offering, so it pays to ask the question.

Read more: Security tips to save money on your insurance bill

3. Records

It’s good practice to keep documentation and references of correspondence between you and your chosen provider in case any disputes arise. Save yourself future headaches by holding onto receipts (especially for big-ticket items!) and capturing photos that show the condition of your home and the contents in it.

4. Cover everyone

Make sure your house insurance policy covers everyone living in the household, this is particularly important to check if you’re renting. Pet owners might also like to consider a policy that covers any unforeseen damage caused by a mischievous animal.

5. Shop around

Don’t just settle, always do your research. All policies have their limitations and perks so find out what’s on offer from a range of providers to ensure your policy delivers both in terms of price and personal circumstance. For example, if your situation is likely to change, such as you’re planning to renovate or vacate your home for an extended period, be sure to check you’re covered for this event.

Taking the time to understand and chose a policy that suits your personal situation may ultimately save you future financial burden and loses if your home or possessions are ever damaged or stolen.

Author

Laura Crowden works for life admin experts iSelect. When she isn't providing advice on how to find the right energy, broadband or insurance plan, Laura can be found tackling home renovations (to varying degrees of success) or eating ice cream. She loves getting a good deal, sparkly things, her cat & G&Ts.

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