Home and contents insurance: How much is enough?
Though most home owners know insurance is essential for their home and possessions, many are unsure about what their policies cover, whether they have enough or what they need.
A 2014 Insurance Council of Australia report identified that 81% of homeowners and renters are exposed to significant financial loss because their insurance does not cover them to resume the same standard of living in the event of a crisis^.
It’s likely that part of this is because they’ve underestimated the cost of rebuilding their property or replacing their belongings.
We don’t want you to find out the hard way that your insurance doesn’t cover your rebuild, repair or replacement costs, so we’ve got some handy online insurance calculators, provided by Allianz to help you figure out how much cover you need (your ‘sum insured’). They work as guides to help you estimate the replacement value of your home building and contents.
About our calculators
Our insurance policies pay a policyholder (or carry out the works) up to a set financial limit. This is called the sum-insured and represents the maximum value of your policy. Choosing the right sum-insured for your home contents is important. Should the unexpected happen and you have undervalued your assets, you may not be able to rebuild or replace your belongings. Web calculators that reference current building and contents replacement costs play an important part in helping you decide the sum-insured to give you peace of mind and financial security.
The home building calculator can help you work out the value of your home. It takes into account factors like the size of your property, the quality of building materials and any additional features to consider.
Click here to access the Home Building calculator.
For even greater peace of mind, you could get a second opinion. Independent professionals such as a quantity surveyor or valuer can provide you with an accurate valuation for rebuilding, repair or replacement. Remember that the cost of rebuilding isn’t the same as the real estate value of your home.
Using our contents insurance calculator can make getting the right level of cover for your belongings just as easy. It factors in the quality and quantity of your possessions as well as the value of prized personal items.
Be aware that valuables, such as electronics and jewellery, may not be fully covered by standard Contents insurance. You may need to boost your cover to get maximum protection for those items. And if you want to ensure they’re covered when you take them out and about, you’ll need Portable Contents insurance or a Home Prestige policy.
Click here to access the Home Contents calculator.
When you’re insuring your home and belongings, remember to keep these points in mind:
- Consider keeping an up to date household inventory to track everything in your home, from electronics and appliances to jewellery and DVD collections
- Costs vary over time, so review your sum insured every year
- Re-evaluate your sum insured when you renovate or upgrade household items
- The cost of rebuilding your home isn’t the same as its real estate value
- Read your Product Disclosure Statement (PDS), policy documents and key fact sheets carefully to ensure you understand your cover.
Want to learn more?
To review the Key Facts Sheets available for our home building and/or contents covers click here.
For detailed information on the cover and limits provided, you should read the relevant Home Insurance Product Disclosure Statement (PDS) and Supplementary PDS (where applicable).
For additional help with insuring your home and contents, contact us on 13 31 30.
˄Source Insurance Council of Australia, Understand Home Insurance Research Report, published August 2014