Do you have the right home insurance policy?

Home insurance is by no means a one-size-fits-all solution. That’s why it’s so important to understand what your specific needs are, and whether your policy meets them.

Making mistakes when it comes to insuring your home and contents can be costly. While you may not want to spend too much time thinking about your insurance, it's important to at least consider some of the common home insurance pitfalls.

Is your home insurance policy up to date?

According to a Quantum Market Research report1, 81% of homeowners and renters are ‘underinsured’. That is, their level of cover wouldn’t be enough to reinstate their quality of living if an insured event occurred.

While some of this is due to socio-economic factors, many people simply haven’t updated their policies to make sure they have the right level of cover. You should always update relevant changes in circumstances and assets to your home insurance provider. These can include:

  • purchases of new, expensive items (like a fancy television or bike) that need to be included in your contents policy,
  • renovations to your property, or
  • beginning to rent out your property instead of living in it.

On the flip side, some people have too much cover. Either way, by keeping your home insurance provider in the loop, you can minimise the chances of being underinsured and ensure you’re not potentially at risk of financial insecurity if something goes wrong.

Are there exclusions your home insurance policy doesn’t cover you for?

Reading through insurance documents isn’t everyone’s idea of fun, but it is still important. That’s because there may be exclusions in your home insurance policy that are important to you.

Some common things people don’t realise aren’t automatically included in their home insurance policy include:

  • damage to your garden or plants
  • accidental damage if you break something yourself, and
  • portable valuables, ie items that you normally carry away from home. This can include your mobile phone, jewellery, cameras, tablets, and laptops.

Have you considered risks according to your home’s location?

When moving home or building a new property, you’ve probably considered the location thoroughly. But more than just your proximity to schools, work, and your favourite cafes, it’s important to think about the potential risks in your neighbourhood.

It’s important to know if you live in an area that’s prone to extreme weather events such as flooding, bushfires, and severe storms. The same goes for crime rates; not only so you can protect your home against potential break-ins, but also so you can get the right cover.

GIO offers cover for storms, fires (including bushfire), floods, and break-ins, even under our standard level of cover. We also offer a range of other options and home insurance policies, to help you find the right coverage for your needs.

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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Consider the Product Disclosure Statement before making a decision about this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

Understand Home Insurance Research Report1