The building blocks of home insurance
If you’ve just extended or improved your home you will need to make sure it is properly covered by home insurance. As brokers for a number of insurers, Direct Axis can make sure you have the best cover in place to suit your specific needs. We have also compiled seven things to look for when considering insurance for your home:
What is building insurance?
This covers everything that’s fixed in place (walls, doors, geysers, sinks, plumbing, etc). Typically, if you have a bond, your bank would have insisted you have building insurance in place.
What is contents insurance?
If you turned your home upside down and gave it a shake – everything that falls out is covered by contents insurance.
What is all-risk insurance?
This protects items that go where you go. Generally speaking, one gets Unspecified All-Risk Insurance (which takes care of things like the changing contents of your handbag and is automatically included in your cover) and Specified All-Risk Insurance, which covers more expensive items such as laptops, jewellery, cellphones, sunglasses, etc.
Keep a record.
When it comes to contents and all-risk insurance, it’s important to make a list of all the things you own. It just makes it a lot easier should you have to submit a claim. Write down model and serial numbers (if applicable) and keep receipts. When it comes to jewellery, insurers often ask for a copy of the valuation certificates. We recommend that these are updated each year by a reputable jeweller as jewellery’s worth does change. And take photos – they’re invaluable when it comes to showing ‘proof of ownership’.
Work with a broker to make sure you get the right kind of cover at the right price. Many insurers use formulas that the man on the street isn’t aware of. For example, if only 40% of your home contents have been insured and you claim for a stolen TV, only 40% of the value of the TV will be paid out.
Ask about extras.
Some insurers offer great benefits such as legal or tax assistance, which could translate into great savings. Don’t be shy to ask.
Check in annually.
Pick a month each year (one’s birthday month is often easiest to remember) to double-check with your broker that you have the right cover in place. Perhaps you’ve updated your security system or inherited an antique ring that needs to reflect on your policy. You could also be eligible for a better rate.