Sometimes we're asked by people to just insure their homes because they feel like they don't have a lot of contents to worry about, or they want to try and reduce their premiums.
In most cases we encourage clients to have at least the minimum level of Contents Insurance, and in some instances it can discount the Building Insurance premium and achieve a very similar pricing result compared with insuring the building on its own.
The definition of Home Contents usually includes things like carpets, floating floorboards, window furnishings, appliances, furniture etc. but clients often forget to about other things like their clothing, linen and tools in the shed. Things don't cost a lot when you're buying bits and pieces during the year but if you had to replace everything you owned it adds up to a substantial sum.
Having Contents Insurance can also ease some of the stress with a total loss like a house fire or a flood. Your insurer will often use your Contents Sum Insured to make emergency cash payments to you along with the Temporary Accommodation benefit so you can set yourself up in a rental while the building claim goes through.
While we are living in the age of Go Fund Me pages, Contents Insurance can give you the dignity of having your own funds during the rebuild process without having to rely on friends or family. In my experience supporting clients through many types of claims from water damaged carpets to total loss house fires, I would encourage anyone to consider at least the minimum level of Contents Insurance cover before removing it entirely.
This is a recent article where a couple shares their own experience of removing their Contents Insurance before losing everything in the 2024 Grampians fires:
As always, this advice is extremely general in nature and doesn't take into account your personal circumstances, you should always consider the PDS/Policy wording before making a decision.
Coverage may differ based on specific clauses in individual policies.
Please contact us if you would like us to assist you further.

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