Your home is probably the biggest and most important asset in your life so you’ll want to make sure it’s adequately protected. When checking out house insurance options, you’re bound to have a few questions about what you’re buying. We’ve answered some of the most common questions here.
1. How much cover is enough?
When taking out house insurance, it’s important to ensure you have enough cover to complete a full rebuild1, in case your home is extensively damaged or completely destroyed. To do this, you’ll need to figure out your home’s sum insured, which is the maximum amount that will be paid out if you make a claim.
Ensuring that you have enough cover is vital.
If you under-insure, you might not be able to rebuild your home to the same size or standard.
The main thing to know is that you’re responsible for making sure your sum insured is enough to rebuild your home, and for keeping this figure up-to-date.
It can be useful to call in a professional valuer or quantity surveyor to give you an accurate figure, or use an online calculator to get an estimate. Ensuring that you have enough cover is vital. If you undervalue your home, you run the risk of being under-insured and not having enough money to rebuild, and vice versa – if you overestimate your sum insured costs, you can end up being over-insured and paying for more than what you really need.
For more information on how to calculate your sum insured and what to do next, visit our sum insured page.
2. How can I lower my premium?
There are a few things you could do to bring the cost of your house insurance premiums down. For example, choosing a higher excess level or opting to pay your premiums annually instead of monthly.
If you need to insure both your home and contents, consider ooonlgetting them both from Tower so you can get a package discount. If you have car insurance, look at bundling up all three of these policies for a bigger saving.2
3. Are my home and contents still covered when I’m away?
This is a question that often comes up. Generally, your home and contents will still have cover when you’re away. However, there may be some exceptions depending on how long your home will be empty and whether or not it’s a holiday home.
At Tower Insurance, we’ve made it easy with our latest policies. You don’t need to tell us your home’s unoccupied – however, you’ll be charged an additional excess on any claims.
Some of your older policies require you to let us know if your home will be unoccupied for 60 consecutive days or more and it’s important to let us know in advance. If you forget to tell us and a loss occurs, it’s possible that your claim could be denied. If you’re not sure, check your policy wording or simply pick up the phone and have a chat with us before you head away.
If you have any other questions regarding house insurance, don’t hesitate to get in touch with our friendly team of insurance consultants.
1This needs to include anticipated construction costs, professional fees, demolition costs, removal of debris and GST.
2 Discount varies depending on the total number and type of insurance policies with Tower.