Martin Lewis on How to Choose Home Insurance

Martin Lewis explains how to find the best home insurance cover without breaking the bank. Don't let your home insurance roll over with the auto renew otherwise your home insurance provider will be taking you for a ride. Do a home insurance comparison and read the guide: for all the need to knows

Homeowners Insurance Explained

just home insurance, Homeowners Insurance Explained

Here's a quick video explaining how Homeowners Insurance works.

As always make sure you do your homework when it comes to home insurance, making sure you're covered properly will insure no nasty surprises pop up when you need the insurance most.

CommInsure Home Insurance

comminsure home insurance
There's no doubt that the Commonwealth bank is one of, if not the biggest bank in Australia. So it makes sense for most people who bank with this giant to keep their insurance with them too, I mean I have my home and contents insurance with them.

So far I have been happy with their coverage and anytime we have had a claim they have come through for us.

Highly Recommended.

Home Insurance

  • Home buyers of non-strata title properties can cover their building and contents from fire, flood, theft and more.
  • Home buyers of strata title properties such as apartments, can cover their contents plus additional fixtures & fittings not covered by strata insurance. Check your strata Insurance to find out what’s covered

Investment Property Insurance

  • Investors can protect their building and contents such as furniture, carpet, dishwashers, etc that they lease out to tenants from fire, flood, theft and more.
  • Additional cover options can protect investors from loss of rent, malicious damage or theft by tenants resulting in work and repairs.  

Home Loan Protection

  • CommBank Home Loan customers can choose from:
  • Loan Repayment Cover which could pay their loan repayments if they’re unable to work due to injury, illness or if they lose their job.
  • Loan Cover which could pay off their home loan up to $750,000 if they pass away. 

See CommInsure's ratings below...

How to Buy Homeowners Insurance

How to Buy Homeowners Insurance just home insurance

You can't be approved for a mortgage without homeowners insurance, which will cover you if a tree falls on your home, a guest trips on your stairs, an intruder makes off with your valuables, and much more.

Step 1: 
A standard policy covers property damage caused by certain disasters; personal belongings, up to a limit; personal liability, which protects family members from lawsuits related to injury or property damage they may cause others; and medical coverage, which pays the expenses of non-family members injured on your property.

Step 2: 
Calculate how much insurance you need to carry. Homeowners insurance reimburses you for the cost per square foot of rebuilding your home—not the market value of the house.

Step 3: 
Figure out how much it would take to replace the contents of your home, which you can record by photographing or videotaping them. Consider hiring a professional appraiser to help.

A standard policy has reimbursement limits. If you own something particularly valuable that exceeds the limit, buy a separate policy for it. You’ll have to prove its worth with an appraisal.

Step 4: 
Consider buying additional coverage. Damage from fire and lightning is covered in standard policies, but flooding and earthquakes are not. Hurricanes are generally covered, but any flooding they cause is not.

If you live in an area prone to disasters that cause rebuilding costs to skyrocket, you might want extended-replacement coverage, which gives you an additional 20 to 25 percent over your policy limit.

Step 5: 
Weigh the pros and cons of a cash-value policy, which gives you money to replace your belongings, minus depreciation, versus a replacement-cost policy, which reimburses you for the current cost of replacing your goods. The latter has higher premiums.

Step 6: 
Get at least three rate quotes, since premiums can vary wildly, and check out the financial health of various insurance companies by searching online for their financial-strength ratings.

If you own a car, always check homeowner rates with your car insurer. Some companies give discounts to customers with multiple policies.

Step 7: 
Ask if you qualify for a premium discount if you have a security system, an upgraded electrical system, or new plumbing. Choose the highest deductible you can safely afford. Taking a $1,000 deductible rather than a $500 one can reduce your premiums by as much as 25 percent.

Step 8: 
Review your policy, and alert your insurer any time you make substantial renovations or a pricey purchase.

Did You Know?
If a ring or other piece of jewelry falls down the drain, standard homeowners insurance partially covers the replacement cost.