How to find the top home and contents insurance policy

There are several home insurance policies available to homeowners from different insurance companies. But what differentiates the top-rated home and contents insurance policies from other policies? 

Generally speaking, a good home insurance policy will provide you with transparent details about the events or incidents it covers. The quality of customer service offered is another hallmark of a good insurance policy. You could speak to your neighbours about their experience with various insurers and also check online reviews to gauge an insurer's reputation for customer service. This could make it easier for you to choose a top-rated home insurance policy with an insurer that’s easy to deal with and typically pays out claims efficiently. 

When comparing home insurers, you should also consider their accessibility. The ability to make quick and easy contact with your insurer can be vital when filing urgent claims or making policy updates. Some insurers operate exclusively online and their communication is limited to chat, email, or phone calls. On the other hand, some insurers maintain physical branches that offer the option for face-to-face discussions. Consider how you prefer to interact with your insurer and choose one that aligns with your communication preferences. 

There’s no single best home insurance policy on the market. While there are several top-rated insurance products you may find, it’s more about comparing the options and selecting one that aligns with your personal situation and needs. 

To find what’s best for you, you’ll need to consider various factors such as your budget, the level of coverage you need for your home, the value of your possessions, and your risk tolerance. Once you’ve understood your unique requirements, you may hop online to compare home insurance products to find one that matches your needs. 

Consider looking at the following factors in detail when comparing insurance quotes to make an informed decision.

What kind of coverage you need

Understanding the type of coverage you need is one of the first things to think about when purchasing a home insurance policy. There are three main types of home insurance: 

• Building insurance: Typically covers the cost of replacing or repairing the building and fixed structures in your house.
• Contents insurance: Provides coverage for your personal belongings.
• Home and contents insurance: Provides coverage for the building and permanent fixtures, as well as your personal belongings. 

For homeowners, protecting what’s inside their homes is usually as important as the house itself. If you’re looking to protect both your home and belongings, you have the option to purchase building and contents insurance individually. Or, you may consider a bundled coverage offered by some insurers, often at a discounted rate compared to buying two separate policies. For tenants, building insurance is typically not needed. 

Choosing between sum insured and total replacement cover

One of the more challenging questions to answer when comparing home insurance policies is how much home and contents insurance do you need? 

You need to consider whether you want to purchase a policy that covers the total cost of rebuilding your home if it’s destroyed by a disaster or one that offers a fixed sum that may, in the end, not be enough. 

Opting for a policy that covers the full cost is often more expensive in terms of premiums but you’re less likely to be underinsured with this type of coverage. The other option is a sum insured cover that offers a predefined amount of coverage. However, setting the sum insured could be tricky. If you set an amount that’s too high, you may find yourself paying higher premiums than necessary. On the other hand, if you select a lower amount, the payout may fall short of the actual costs and you could end up paying for repairs out of your pocket. 

Consider the types of adverse events covered

It is crucial to assess the potential risks in your area before deciding on the home insurance policy you want to buy. You can reach out to your local council to gather information about the type of natural events likely to happen in your area. Additionally, having conversations with your neighbours about potential threats to homes in the area can offer valuable insights. 

Once you’ve determined the range of adverse events that could pose a risk to your home, consider looking for insurance policies that cover most, if not all, of these events, preferably without you needing to pay any additional fees. However, for certain events, you may need to be prepared to pay a higher excess or purchase an add-on cover, depending on your insurer and where you live.

For instance, some insurers may not automatically include flood coverage for those living in high-flood risk areas, or they may charge a higher premium (or an additional excess) for such coverage. Remember to carefully review the terms and conditions of your policy to ensure you have the coverage you need. 

Exclusions, and optional extra coverage

Knowing your policy’s coverage is only half the puzzle. You also need to know what’s not covered and for what you may need to pay extra. For instance, consider a scenario where your home is hit by lightning that causes a power surge. You’ll want to know if your policy will cover damage to any home appliances from such a surge. Or, what happens if you accidentally leave a window open during a heavy rainstorm and water enters your home, causing damage to your furniture and flooring. You’d probably want to check whether your home insurance covers you against accidental damage or water-related incidents. 

Just because you’ve purchased a home insurance policy doesn’t mean you’re covered for everything. Make sure to read the insurer’s Product Disclosure Statement closely to find out about the exact nature of the coverage, as well as any limitations and exclusions before you take out any cover. 

Emergency assistance

One of the unpleasant aspects of a disaster is the need to find shelter while arranging the necessary repairs or renovations to your home. Consider checking if your policy will cover the cost of temporary accommodation as well as part of the income lost during this time.

The cost of home insurance depends on a wide variety of factors, including the location of your house, its size and age, your claims history and the add-ons you need in your insurance policy. Further, different insurers have different risk appetites, leading to varying levels of coverage offered at different price points. 

To find an insurance policy that not only meets your needs but is also within your budget, start by comparing quotes from multiple insurers. However, remember to compare both the cost of the policy and the extent of coverage it provides to make an informed decision.