When it comes to home contents insurance, many people are underinsured, as they are only covered for the items they owned when they took out the policy, or they are underinsured as their insured items are only covered for the amount that the items were worth at the time of purchase (i.e. not at the current replacement value). In addition, buildings insurance is very important for every homeowner, as it covers the actual building structure, all the permanent fixtures, walls, outbuildings, swimming pools etc., in the event of a fire, floods, and other unforeseen disasters.
If you are not adequately covered, you could be worse off. Here are a few reasons why being adequately covered will ensure that you are financially well in the long run:
Natural disaster: If your home is destroyed by a natural disaster, your buildings insurance will usually pay for the cost of having to move out, to rent another home as well as rebuilding or repairing your building undercover. The insured amount should also cover the demolishing of the building (where applicable) and the removal of rubble.
Remember, that in the case of a natural disaster or total loss, not only the building but also the contents of your building should be adequately covered to such an extent that you could rebuild and restock your home to be in the exact same position before the loss.
Negligence: Always check if your home insurance policy covers you in case of an act of negligence; for example if a heater caused a fire. It is important that your insurance policy is as comprehensive as possible to cover you in any event.
Household damage: Being adequately covered will ensure that your policy pays out enough money to cover the actual structure of your home and your contents from a geyser that bursts, to a freezer that broke and spoilt the contents thereof. It is also important to update your policy every year to ensure that you are not underinsured.
Iemas Insurance Brokers, a wholly-owned subsidiary of Iemas Financial Services, offers comprehensive insurance cover to secure all your belongings. For more info visit: https://bit.ly/2CLGXDI or call us on 0860 102 383 to get a quote.