Understanding home and contents insurance

It is important to sit down and identify your risks.

If you are in an area with high bushfire risk you need insurance to cover that. It is always a good idea to identify your assets and valuables so they can be replaced if there is a disaster.

Don't simply renew your home and contents insurance each year - think about any rebuilding or renovations you have done and any big purchases such as new electronics.

This is important as renewals are a time to review your situation rather than just agreeing to continue your cover, as your assets do change.

You also want to cover the cost of rebuilding your home if there is a major disaster. I recommend that you never buy insurance solely based on price. It should be about meeting your individual needs and risks.

Don't assume you are covered. Always read your Product Disclosure Statement, as this outlines your inclusions and exclusions. If unsure, discuss your cover with your insurer.

Finally, shop around. Australia has a very competitive general insurance market, so it's important to find the product that suits your individual needs.

According to the Australian Prudential Regulatory Authority, Australian insurers pay out more than $95 million in claims each working day. An estimated 98% of all claims are paid without dispute.

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