Insuring your Home Against Disaster: How Much Coverage do you Need?

*This is a guest post

It’s great you’re thinking about insuring your home. But just what level of coverage won’t be considered too much or too little for your house? If you want to protect your house and its contents, start by having an idea of how much cover you’ll need.

To begin with, buildings insurance usually covers the building and any outside structures like your shed. Your landlord pays for this cover if you are renting. And contents refer to any of your items or belongings.

Insuring your Home Against Disaster- How Much Coverage do you Need

What level of buildings insurance cover do I need?

A satisfactory level of buildings insurance is equivalent to the cost of rebuilding your home, and not its value in the market.

Homeowners who add more rooms to their residence but fail to increase their buildings insurance cover are prone to suffer in the event of a catastrophe. The insurer will only compensate for the parts of the building protected by the cover. It’s important to include every addition you make in your buildings insurance and find out if there are extras like roof warranties in your protection.

What extent of home contents insurance do I need?

When taking home contents insurance, do not make the mistake of undervaluing your items. Include everything from books to jewels, clothing to electronics, carpets to furniture, curtains and any other thing that cost you some good cash.  

Use an online home contents insurance calculator to know the exact level of contents insurance you need. It allows you to add the cost of all your possessions from one room to the next and give you the sum of all your contents.

Safeguarding your valuables

Always go through what is contained within your policy by discussing with your insurer or scrutinizing the small print.

You’ll find that some contents cover policies to take care of some content at no additional cost, while others include them as extras. For instance, ‘high-risk’ or ‘high value’ things may need to be categorized separately and given extra cover.

These may be things like:

  • Antiques
  • Pieces of Art
  • Bike
  • Laptop or computer
  • Jewels and watches

Extra Home insurance covers to consider

Here is a list of other policies you may take to protect your abode and its contents. It is expensive to pay for all of them, so it is wise to pick the ones you deem necessary.

  • Accidental damage – covers you from such scenarios like DIY disasters like staining your brand-new carpet accidentally.
  • Personal possessions – protects items you may carry with you outside your homes like your laptop or smartphone.
  • Home emergency – insurance for occasional repairs in the event of emergencies.
  • Alternative accommodation – offers provisional alternative housing during emergencies.
  • New for old – cover paid on a new-for-old cycle.
  • Legal cover – gives you legal liability protection in the event you get sued by someone who is injured your property.
  • Locks and keys – insurance for damaged locks or lost/stolen keys.

The consequences of underinsuring your home and its contents?

Under-insuring your home means the cover provider will pay part for the claim and you will have to account for the deficit. For instance, if a storm sweeps your house and a rebuild would cost $160,000, but your cover is set at $100,000, then you’ll have to account for the $60,000. The same happens for underinsured contents.

Wrapping Up

Now you know what level of insurance you need for your home and valuables. Compare insurance cover providers along with the quotes to see what matches your needs.

Thanks for stopping by today.

You can find similar posts to this is my home section.

rachel bustin
Thank you for sharing

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