It takes a lot of effort to make your house a home. And if you’ve recently renovated, upgraded your appliances or redecorated with new furniture, you’ll know it also takes a lot of money.
But what would happen if an unexpected event damaged your home – or if your new items were stolen? If you haven’t reviewed your home insurance lately, check to see if your existing policy will adequately cover you.
Have you made changes to your home?
Any renovations or improvements that increase the value of your home – or its cost to rebuild – should be reflected in your home insurance’s building sum insured. So if you’ve upgraded your kitchen or bathroom, or added a deck or other room, it may be time to review your home insurance.
When deciding how much extra building cover you need, consider the current total cost to rebuild, including GST and all improvements. You should also include the costs of demolition and debris removal, complying with any new building standards, and paying architectural, engineering, surveying, construction and legal expenses. These can all add to the rebuilding costs if your home is damaged or destroyed.
Bought new things?
Whether it’s a new lounge or dining table, carpets, technology or sporting equipment, your belongings can add up to more than you think.
The theft of expensive items could set you back if they need to be replaced. And a fire or flood could see you having to replace all your contents – including fixtures and fittings like carpets and window furnishings – so it’s important to have the right amount of contents cover.
To understand what your contents are worth, do a room-by-room inventory of items including your storerooms and the garage. Then work out how much it would cost to replace everything.
Getting the right home insurance
If you already have building and contents insurance in place, remember to review it regularly to make sure it’s still up to date.
