An insurance claim on your property is often daunting, stressful and overwhelming.

Thankfully, here at First Response we are experienced in streamlining the process.

In this three-part series, we’ll help clarify your home insurance needs, getting the right coverage and understanding your responsibilities as a homeowner on the Sunshine Coast.

Opting for home insurance is always a practical choice, and one you won’t regret. The ramifications of not insuring your home can cause life-altering damage to your bank account, as well as your personal property. Home insurance offers tremendous peace of mind. The emotional impact of dealing with a fire, flood or natural disaster affecting your home can be catastrophic. The cost of repairs and restoration adds an even greater stress. Having home insurance helps alleviate the financial burden of an unexpected crisis, and cover the cost of remediation.  

If you’re considering options for home insurance, start with the basics.

What to do:

• Connect with a reputable, trustworthy insurance company, agent or broker’s office that is qualified and authorized to advise you on home insurance. 

• Get an appraisal of your valuables before a loss occurs, and keep copies at an alternate location or safeguarded in a digital file. 

• Ensure your policy offers sufficient coverage for building code upgrades. 

• Inform your agent about improvements to your home, and opt for higher deductibles.

• Check that your Additional Living Expense (ALE) or “Loss of Use” limits will cover rent and lodging expenses for at least two years after a total loss. 

• Do your homework to get the best policy possible. Loyalty isn’t always rewarded. Homeowners can end up paying premiums for years without filing a claim, then find themselves underinsured when a loss occurs. 

• Check that you have proper contents coverage. A replacement cost endorsement that increases your dwelling limits may not increase your contents limits. 

What not to do:

• When predicting the cost to rebuild, don’t rely merely on the purchase, appraised or estimated sale price of your home.

• When weighing the cost of coverage, don’t cut corners or assume you’re ‘saving’ by opting for the lowest priced policy - especially if your home is your largest asset. 

• Don’t minimize or underestimate the size of your home and personal possessions in order to achieve a lower premium quote.

UP NEXT: Getting the Right Home Insurance Coverage