Home and Contents: Can you Afford not to be Insured?



The future is uncertain.  Whether we are going to be blessed with stability and prosperity, or experience misfortune – even disaster – is impossible to predict.

Loss or damage to our homes and our belongings is one of the deepest fears many of us have. Burglary, household accidents, water damage and fires are amongst the more catastrophic misfortunes that can befall us. We can, however, safeguard against some of these most dreaded prospects in life, by investing in home and contents insurance.

Insuring your home and its contents is an expense that can save many thousands of dollars in the instance that you need to make a claim. The cost, for most people, of insuring their homes and belongings, is considerably less than the expense of replacing your possessions – even your home – if something goes terribly wrong.

Leaving your house and your possessions uninsured is a gamble that can cost you dearly if your home and/or belongings are damaged or compromised by an accident, burglary or other unforeseen misfortune.

For many people, the most valued possessions they instinctively consider when they contemplate losing everything they own, are those that aren’t ‘replaceable’ – in other words, the items that hold sentimental value.  Typical examples of these belongings are family heirlooms and photographs, which may not be valuable in a monetary sense.

The valuable items many of us overlook, however, are the possessions that we may even take for granted – and these are the belongings that are replaceable, which are often incredibly expensive to replace. When it comes to our replaceable possessions, the question is not about whether we can afford to insure them – but whether we can afford not to.

The likelihood of experiencing a catastrophe at home front may seem low, but the expense of replacing our belongings can add up to many thousands of dollars and lead to serious financial distress in the worst case scenario.

Home insurance covers the physical structures that make up your house and home.  This includes garages, sheds, fencing and other permanent attachments to your home and property, such as patios, awnings and below-ground swimming pools.

Contents insurance covers other possessions and items within our homes. This property, such as electronics, appliances, clothes, household goods (furniture, kitchenware, carpets, curtains and blinds) and other personal effects.

Home insurance is specifically for home owners; specific policies are available for renters, and contents insurance is relevant for both home owners and people living in rental properties.

Home and contents insurance policies come in many shapes and sizes, depending on policy holders’ personal circumstances.  Various plans cover different scenarios, and insure possessions to certain values. These plans can be tailored to suit individual requirements, depending on where you live, what you own and whether you wish to cover any extras as part of an insurance plan. To compare prices of different plans, visit iSelect’s website for quotes.