INSURANCE IS ESSENTIAL FOR EVERY HOME OWNER

Your home is likely to be your most important asset. As such, it's extremely important to ensure your home is adequately insured so you are covered if it's destroyed by fire, flood, storm or by any other means.

Most insurance costs are determined by several factors including where you home is located, the material it's constructed from and what additional or unique features it has.  For example a brick home is less likely to be destroyed by fire and therefore may carry a lower insurance premium.

Usually a home is insured on a per metre replacement cost basis. In other words, if your home was destroyed , what it would cost to rebuild the same property at today's prices as opposed to the cost of construction when you originally bought it.

Replacement cost should also include any costs associated with removing debris from your land, the cost of landscaping and the cost of constructing any additional features such as a pool.

Policies should also include the cost of professional fees for the redesign of your home and any local council costs associated with obtaining the building approval.

The best way to ensure your home is adequately insured is to hire the service of a Quantity Surveyor. Although you might consider this to be an unnecessary expense, it could end up being more expensive if your home is destroyed and you don't have adequate insurance.

Also, if you do any renovations to your home or add any extra features, such as a garage or pool, make sure you update your insurance policy immediately.

Of course, make sure you read your home insurance contract carefully before you sign it.  Although policies may look similar a single clause can change the entire meaing of the policy. If you don't understand any of the clauses in the policy ask your insurance advisor to explain.  Alternately you might like to have your solicitor review the insurance contract before you sign on the dotted line.

Remember your home is one of your most valuable assets, so don't leave it (or yourself) exposed to potential disaster.

(Information courtesy of Property Insider)

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