Home & contents insurance – get the right cover

While setting up Home & Contents Insurance may seem straight forward, there are a range of features that can be tailored to your individual needs.

Don't make false declarations about security

False declarations about security measures to reduce your premium will likely turn out to be a false economy. For example, if you tell the insurer that you have window locks installed and a burglar breaks in through a window, the assessor will want to verify that you do in fact have such locks before approving any claim.

Review your home and contents cover regularly

Your home circumstances will change from time to time, for example, renovating the kitchen or purchasing a new lounge. Any purchases or improvements will increase the value of either the home itself or its contents and may necessitate a reassessment of the amount of cover on your policy. If you don't review your insurance with changing circumstances you risk being underinsured.

Identify the exclusions

A home and/or contents policy will not cover all events - events not covered are called 'exclusions'. Check the policy to determine what exclusions apply and whether you think any of these exclusions could be important to your circumstances.

Will you need temporary accommodation?

Consider what would happen if your home became unliveable as a result of loss or damage. Many insurance companies will pay for you and your family to stay in temporary accommodation if your home is unfit to live in. You may find this a valuable policy feature.

Keep premium payments up to date

Ensure that monthly insurance premiums are paid on time to avoid any delays should you need to make a claim. The insurance company may even refuse to pay out your claim if you are not up to date. Some insurers will cancel your policy if premiums remain unpaid for a specified time period.

Do you need Domestic Workers' Compensation?

If you regularly employ a person to undertake work around the home (eg. a cleaner or gardener), consider taking out Domestic Workers' Compensation as part of your policy. This will provide cover for any claims a worker makes for injuries sustained while on your property. This cover is not available in all states and even when it is, not all insurers offer it.

Specify your valuables

Some of your unique or more expensive personal belongings may only be covered for their full value by taking out a 'specified items' option. This can cover items like jewellery, curios and works of art. Generally, contents insurance will only insure these items up to a set limit. Specifying particular items may be part of an insurer's standard policy or you may have to pay an additional premium.

Improve the security in your home

Some insurers offer reduced premiums for homes with better security, particularly alarm systems. However, check that any alarm meets the insurance company's standards.

Choosing the 'excess'

Most insurance companies allow you to choose the 'excess' amount you pay when making a claim. Agreeing to pay a higher excess in the event of a claim may reduce the premium.

Discounts for multiple policies

Taking out several insurance policies with the same insurer may save you money. Many insurance companies offer discounted premiums if you have home, contents and car insurance with them.