Archive for April 30th, 2009
Home Insurance Versus Contents Insurance
Although we often talk about home and contents insurance as a single policy, its really two very distinct and two very different types of insurances. With all of us feeling the financial strain on our monthly household budgets, the this is definitely one area that you can look at if you want to make some financial cutbacks. Although we all know just how important insurance is when we really need it, there is definitely opportunity to save. Let’s quickly look at home insurance and contents insurance and see exactly what it is and where we can potentially make some savings.
Firstly, home insurance refers to the insurance that covers your actual home. This is the “bricks and mortar” insurance that covers the structure as well as the land your building sits on. Fire damage, flooding, hurricanes or anything that can damage the structure of your home will be covered by your home insurance policy (also called buildings insurance). This type of insurance is really important and I would not suggest that you skimp on this at all. Structural damage of any kind can be very expensive to repair or replace and without insurance you can run into some serious trouble. The best way to save is simply to shop around between different insurers and try and find the best deal possible.
Contents insurance refers to everything inside the structure of your home although many other items can also be insured under this policy. It’s basically there for all your possessions that you consider valuable. In terms of your home it will cover furniture, electronic equipment, fire arms and even jewellery. The biggest threat is theft and burglaries and with the escalating crime rates in many suburban areas, contents insurance policies is higher than ever before. Taking a closer look at your policy can allow you to safe. With high insurance premiums it’s often cheaper to replace items once a year than it is to insure it for a year. Use your own judgement and try to be sensible in what you insure.
Getting both your home and contents insurance under the same policy can also have its advantages. many insurers will reward you if you do that. The problem is often that you cannot tailor the policy to your own needs. Insurance can be a tricky thing. Sometimes it feels like its money wasted, but trust me – when you really need it you will be glad you have it.
By: Deon Du Plessis
About the Author:
Are you looking for cheap contents insurance? See my blog and read more about buying building and contents insurance.
