How to Choose the Right Home and Contents Insurance Policy

By Joseph
December 5, 2022

Choosing the perfect home and contents insurance policy does not have to be a daunting experience. Approaching the task with a clear head can make all the difference in the world. You never want to get stuck in a contract that does not have your best interests at heart. 

Of course, you need to know that insurance companies are in the business of making money, so you need to listen to any advice they offer, but you must use your own judgment in the end. Let’s take a closer look at a few things you can do to help you choose the right home and contents insurance policy.

  • Itemized List – The first thing you need to do is go through everything in your house and write an itemized list of everything you want to be covered on the policy. This needs to include a serial number, the item, and the cost of replacing it.
  • Regular Occurrences – If you are new to an area, conduct some research to find out what the typical weather conditions are; otherwise, use your own experiences. Make sure that any policy that you get has the correct coverage. For example, suppose you live close to the ocean. In that case, you will want to ensure your coverage includes any tsunamis or hurricanes. If it happens in your area, have coverage for it.
  • Replacement Value – When signing a contract, one of the choices you should have is to receive the cost of the repairs or replacements at the time of signing the contract (a set amount) or one that covers the prices at the time you file the claim. If you opt for the first option, make sure you have a slightly higher policy to ensure that everything is covered when you end up having to file a claim.
  • Compare – Take the time to go to an online platform, such as the iSelect house and contents insurance platform, and compare offers from numerous insurance carriers. This is an important step even if you have had coverage in the past because it is the only way to find a good deal on an excellent policy. You do not owe your business to anyone, so if you find a company planning to give you better rates, better coverage, or both, do not hesitate to switch. 
  • Liability – You never want to skimp on your liability coverage because you never know when someone may get hurt while on your property. Someone that will have no qualms in suing you for medical treatment and damages. You want to stay within your budget when paying a yearly premium, but always make sure you have enough coverage.
  • Deductible – Changing the deductible amount is perhaps the easiest way to change the amount you will owe on your premiums, but it can come back to haunt you later if you do not take the time to truly analyze your financial situation. The higher you put this number, the less your premiums will be. But the higher the deductible is, the more money you will have to pay out of your pocket if a claim ever needs to be filed.

The most important piece of advice that you can ever get is to take your time and choose the policy that fits your needs. Never settle for a policy because there are so many insurance carriers on the open market that want your business that you should be able to find the perfect home and contents policy without having to take out a second mortgage on your house to cover the costs of it. If a policy is not up to par, move on to the next offer, and so on, until you find the policy that matches your circumstances.

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