By Richard Laycock | Insurance Expert at Finder.com.au
Home insurance can be a confusing concept to some, especially if you’re a first home buyer and aren’t completely sure how it works. And even if you already have home insurance and you think you’re adequately protected, you could still be caught out without enough cover. The best way to tackle both these problems is to do your research and see what the market has to offer. Natural disaster and storm cover is particularly important as it can protect you against the financial impacts of a storm, flood, bushfire or more, especially coming into the winter months when the weather will be more rough than ever.
Why do you need home insurance during a storm?
Storm damage can be expensive to repair. A normal storm might not hurt your house too much, but every once in a while your home could receive damage that could end up really hurting your wallet.
You should consider where you live. Statistically, those in Queensland and Western Australia are far more likely to be impacted by a cyclone than residents elsewhere. So if you’re in one of these areas it’s worth considering home insurance that includes cover for storm damage.
What affects the cost of your premiums?
When taking out a policy it’s important to remember that insurers take your address into account. This is because the proximity of your home to certain factors can impact the likelihood that you’ll make a claim. For example, those who live in a bushfire zone have a higher risk of being affected by bushfires than those who live far away from the bush. Similarly, your proximity to the ocean or a creek or river will likely impact the price of your policy. Storm surges can be very damaging and your insurer will consider this when calculating the price of your insurance.
How secure is your home:
It’s important that you show your insurer that you’re taking precautions to prevent the worst from happening. That’s why insurers will often examine how secure your home is and what your walls and roof are made out of. Certain types of houses are more resilient to storms and bad weather than others, which means that the likelihood of you making a claim will be lower, which in turn lowers the cost of your premiums. The more secure your home, the better it is for your wallet.
Take advantage of multi-policy discounts:
It’s always a good idea to check whether your insurer offers a multi-policy discount. This means that if you take out two types of insurance with the same bank or insurance provider, you may be eligible to receive a certain percentage off the price of your premiums. BOQ is currently offering 20% off every second and subsequent insurance policy.
Invest in better protection:
The more you work to prevent a claimable event from happening to your home, the less you’ll pay for your policy. In terms of storm protection, this means investing in more secure windows and roof materials, and even having your home regularly inspected by an expert. In general, make sure you keep your gutters clear, check for loose fence posts, keep trees surrounding your house regularly trimmed and ensure there is a system in place to allow water to flow away from your home.
At the end of the day, your decision to take out home insurance with storm protection is up to you. It’s just a matter of taking your situation into account and weighing up the pros and cons to see if home insurance will be worth it for you. If you’d like to find out more information about getting insurance through BOQ, contact your local BOQ branch today.
Richard Laycock is an insurance expert at finder.com.au.