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Home and Content insurance (Home and content insurance policy (Define what…
Home and Content insurance
Items like child sporting awards are price less
Home and content insurance policy
Define what is insured and what's not
Define what the buildings are
This can include air-conditioners, In-ground swimming pool,
TV-antennas
Fixed carpets are not included since it's considered a house content.
Define what the contents are
Include household goods
TV, furniture, tables, chairs, pillows, jewelry, cooking tools.
Items used for doing business are usually not covered. They should be in a commercial policy.
Can include collections but they have to clearly defined
DVDs, Stamps, Toys collections, etc
Valuable collections such as jewelries have limited coverage. And you may need to pay an extra premium for those.
Portable items such as laptops and smartphones can be covered
But if you're using them while they're broken, they may not be insured
Add those items into the content insurance could be beneficial even though the premium could be higher.
Separate insurance for portable items can be provided
Choice of cover
Some cover for specific events while others may cover for any accidental event
Cover for specific events
Contents to be covered
At home
At home in the open air
Events to be covered
Fire, explosion
Lightning, earthquake, burglary, theft
Accidental events
carefully read the product disclosure statement to see what contents are excluded in the policy
Cover for specified contents
Most insurers only cover certain items in your home
Extra cover for more items will result in higher premium, but it can be beneficial depending on your situation
There are 2 types of content insurance
Policy that covers the values of my belongings
Policy that replace my damaged belongings with new ones
'New for old' - they replace my old, broken items with brand new ones.
'Higher excess' option - if you could pay the first $1,000 of any loss, the insurance premium will be cheaper.
Define events included and excluded
Define what is covered and what is not
Define the extra covers - probably goes with a higher premium
Items like the house itself and the other contents such as TV can easily be repaced
Home and contents in high risk areas cost more money for insurance coverage
Insurance premium for contents are usually higher than that for buildings since the risk is higher.
Risks to be covered
Burglary, theft or house breaking
May require evidence or police report to be insured
Earthquake
Motor, car burnout
Explosion and lightning, etc.
Sum insured vs total replacement cover
Sum insured policy
Cover the pre-determined cost of rebuilding your home/building e.g. $500,000
These types of policies can be limiting due to inflation and other changes when a disaster happens
Total replacement policies
Cover the total cost to rebuild your home, regardless of inflation or any additional costs
Excess options
Excess is the amount you're willing to pay for each claim you make
The higher the excess, the cheaper the premium
Premium options
Bundle your home/content policy with other policies (e.g car insurance) to get discounts.
The higher the excess, the cheaper the premium
'high risk area' makes the premium higher
Can be paid weeky, monthly or yearly
Basis of settlement
Claim against buildings
Restore the damaged building to the new condition or part of the new condition
Can cover any structural improvements you've made to your home
But it's better to contact your insurer prior to making any improvements
Claim against contents
2 ways to insure
Replace the damaged items with new ones
Pay for the repair