Finding the right home insurance is tough and demanding, just like finding the perfect house. Take the mystery out of home insuring with our beginner’s guide.
For most of us, purchasing a home is one of our biggest financial commitments and a major life milestone. It’s something that we’ve scrutinised over and over again before actually making the decision to be a bona fide homeowner. Having poured your heart and soul (and life savings!) into it, you would want to do everything in your power to ensure that your house is well protected.
Having your home damaged by unforeseen incidents or broken into can be financially and emotionally distressful for you and your family. To combat this, the best thing to do is to pick the right home protection coverage so that you can have a total peace of mind.
Who wouldn’t want to protect something they love with all their heart, right?
However, with an abundance of home insurance policies available out there, it can be daunting to choose the right coverage for your house. A basic level buildings insurance covers the cost of replacing the bricks and mortar and rebuilding your home, but most Malaysians opt to cover their contents too.
So how do you exactly select the right protection for your home? Here are 5 tips to help you decide:
#1 How risky is your neighbourhood?
Do you live in a flood-prone area? Or an area with tall trees? Have there been many break-in cases in your residential area? It doesn’t take rocket science to figure out that you will have to factor in all these problems or risks in your neighbourhood when selecting the best type of coverage for your home.
Though it may cost more to insure – for instance, homeowners living near an airport will have to pay for coverage from damage caused by falling debris and even violent vibrations of aircrafts’ engines. But on the flip side, these policyholders will be entitled to a higher claim amount should any incident befall their home, as compared to homebuyers who live in areas without that risk.
So, make sure to identify any potential “locational’ risk as it will save you a whole lot of financial heartache in the event of a disaster.
#2 Get your buildings and contents covered
When you’re surveying for home insurance, remember to consider protection for two parts – the building and its contents. If your home is still under a mortgage loan, your bank would have purchased a house owner insurance on your behalf to cover the building of your home, but not the contents inside it, leaving it unprotected.
Therefore, be sure to purchase an additional Home Contents Insurance to protect all of your valuable belongings.
Should your mortgage already have been paid off, then don’t forget to purchase your own Homeowner Insurance and Home Contents Insurance.
#3 Insure for the rebuild cost of your home
Keep in mind that you should insure your home for its replacement value, and not just for what you paid for it. This should comprise the cost to rebuild your home, including the cost of renovations, fixtures and fittings if your home is totally damaged.
For those who want to calculate the rebuilding cost of your home, you can do so with the Building Cost Calculator
Only then, should you ascertain which coverage you should be looking at. Ultimately your home (Building) should be protected against loss or damage caused by fire, lightning, explosion, aircraft damage, impact damage, bursting or overflowing of water tanks or pipes, and other natural disasters.
#4 Take inventory of your possessions
Ensure that you have a proper and detailed inventory of your possessions. Make a list of all your home’s contents and the value of those items based on receipts and purchase dates.
You might even want to take photographs of the items on the list. Also, remember to insure the total value of your home contents, including personal and household items that belong to you and your family.
Besides that, do make sure that your Home Contents is covered on ‘All Risk’ basis, which means it covers all the perils (eligible coverages) as per a Houseowner cover, as well as ‘Full Theft’ (burglary or theft without signs of forcible entry).
#5 Look for home insurance with flexible coverage
Always choose a home insurance that allows you to select the type of protection that suits your needs. Did you know that AXA SmartHome Optimum (Enhanced) offers two types of flexible coverage – Homeowner Insurance and Home Contents Insurance?. You have the choice to select either one, or both of the coverage for a complete protection.
Regardless of whether you live in a landed property or high-rise building, there will always be a plan that fits your budget and requirements.
Now that you know what you should be looking at when selecting the best home insurance for your property, it’s worth mentioning that AXA Insurance’s SmartHome Optimum (Enhanced) gives its clients the choice of protecting their home and its precious personal and household belonging according to their needs.
So what are you waiting for? Safeguard your home and valuable contents now with AXA SmartHome Optimum (Enhanced). For more information, please click here.