Insurance 101
How much contents insurance do I need?
Giving a value for your home contents that’s too low means that only a portion of your claim will be paid out, so it’s important to give the right answer.
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Building insurance
Building insurance protects your actual building and its fixtures against things like fire, explosions, Mother Nature, burst geysers, theft, malicious and accidental damage, even subsidence and landslip. However, covers do vary between insurers so be sure to check the exact details in the policy wording.
How much building insurance do I need?
You need to insure your house for the amount that it will cost you, at the time of the claim, to rebuild it with new materials, including fixtures like tiles, carpets, cupboards, built-in appliances and light fittings. You also need to include the cost of any outbuildings and other construction on your yard like pools, walls, etc. Remember, you could potentially lose your whole house and then it would need to be totally scrapped and rebuilt. So make sure that you also include the cost of the following in your insured value: • Making the site safe; • Demolishing and removing the remains; and • Professional and municipal fees.
What’s the difference between home contents insurance and building insurance?
Building insurance covers the structure as well as its fittings and fixtures. Contents insurance covers all of your belongings. Some insurers allow you to insure your building and home contents under one policy.
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