Before you go online and buy a home insurance policy, there are several things that you must consider. You may think that it is self-explanatory and that you must take the first insurance agent’s offer. Nothing could be farther from the truth, though. If you ever have to file a claim, you could end up paying premiums on a contract that does not cover what you need to cover.

The point of home and contents insurance is to give you peace of mind in the financial sense of the word. A policy that will ensure you get compensated for any damages or losses. To get that type of policy, you must consider some things first.

• Budget – Before considering buying a home and contents insurance, you need to know how much you have left over every month. The amount that can go towards the cost of the premiums. If possible, you want to have enough money to pay for the premiums for an entire year because it can save you some money in the end. If you do not have a budget,make one before moving down this list.
• Location –Where you live will have a significant impact on the policy that you need to consider. If you are living in an area known to get a few tsunamis, you will want an insurance plan that will cover the damage it could cause. Not just to your house and outbuildings, but everything inside that could get destroyed by wind and water. If you are new to the area, talk to the neighbors about everything that you can expect, or do some research into the area around your new home.
• Contents –The contents of your house will also be a deciding factor in the plan you need. You can bump up almost any policy to ensure you have enough coverage over all your material things. The easiest way to do this is to make an itemized list of your items that are worth some cash. Write down the item, the serial number if present, how much you paid for it, and the current market value. This helps while applying for coverage and making a claim more manageable if you ever have to file one.
• High-End Contents– You need to understand that most house insurance does not cover anything collectible, antique, or irreplaceable. You will need to add a separate insurance policy to your plan to cover these items. A basic contents policy will only cover up to a certain amount which would not be close to enough to replace the ring handed down by your grandparents. Of course, you will never be able to truly replace it, but the financial assistance you get from your insurance carrier will help you purchase something close.
• Compare – Never take the first offer that you get. Never go with your current insurance company because you think you owe them your loyalty. Insurance companies are in business to make money and will not have any loyalty towards you. You must compare as many offers as possible every time you purchase a place or when the premium comes due. Use an online comparison platform, like iSelect, and let them do all the hard work for you. All you will have to do is go through the offers and pick the best one that suits your needs.

The main thing you want to consider is you and your needs. You will be able to find many generic home and content plans that seem good, but if you look into them you will find out why they are generic. You must read through the entire offer or contract and see what the carrier offers you. If it tries to exclude flooding but you live directly on the flood plain, you will want to move on to the next offer.

Do not ever assume that the insurance company you have worked with has your best interests at heart. Most insurance carriers are not out to rip you off, but they are trying to make as much money as possible. Check all your options and go with the one that offers you the best coverage for the most affordable price.

Martin Woolridge

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