How does house insurance work anyway?
Your home is probably your biggest asset. But understanding house insurance can be confusing. So we’re here to make it easy.
Home sweet home insurance
It’s probably your biggest asset. So it’s important to look after it. But understanding how house insurance works can be a headache. So we’re here to make it easy.
What is house insurance?
It’s there to look after your house. So when something sudden, accidental or unexpected happens, you get the help needed to repair or rebuild your home. Here’s what house insurance typically covers. And what it doesn’t.
It all depends on your policy, so read it through to know what to expect.
How does it work, anyway?
It’s not as complicated as it might seem. You choose your policy including how much cover you need to rebuild your house. Then, if things go south, you decide whether to make a claim. Your insurer will assess that claim and either repair the damage, or pay you a sum of money to do it yourself.
What if I am renovating my house?
Depending on the work being done, you may need to consider taking out contract works, renovation insurance. Check out our blog on renovation 101 for more details.
When to make a claim?
House insurance is mainly designed for the big stuff. That’s why there’s an excess when you make a claim. This is the money you put in toward the cost of getting stuff fixed. The bigger your excess the lower your premiums, so it’s worth thinking about how much you can afford if things go wrong.
You may also get a No Claims Bonus. This is an extra discount if you haven't had to make a claim for a while. But remember, insurance is there to help look after you so don’t be afraid to call us if you need to.
What about my couch or my telly?
Generally, house insurance covers the structure of the house. While Contents Insurance covers the stuff you usually keep inside of your house to make it a home.
Most insurers (like us) give a discount if you get both, so it’s well worth protecting your house and contents with the same people. That way, if more than one thing gets damaged in one event, you only need to pay one excess for everything. Easy.
How do I know what’s right for me?
Whether it’s a sprawling mansion or humble abode – all homes are different, along with the people who live in them. So to know what cover and which insurer is right for you there’s a few numbers to get your head around:
Your excess – this is what you agree to pay when you make a claim. How much can you afford to spend if something unexpected happens?
Your sum insured – this is the total amount your home would be insured for. Never mind what you paid, how much is it to rebuild today?
Your policy limits – different insurers have different policy limits. What’s the maximum amount you can be paid out by your insurer?
When you know your numbers, you’re in a good place to choose your cover.
Got the picture? Get a quote.
Now you’re all set to get the cover you need for your biggest asset. But if you’re unsure what the best insurance is for you, check our buyer’s guide here. You can also use our house insurance calculator to help work out the rebuild cost.
And if you have any questions, we’re always here.