Is home insurance worth it

Is home insurance worth it?

Home insurance can be invaluable if you want to protect your home and its contents from things like break-ins, water damage, electrical fires, or even termites.  But, with premiums that can reach as high as $900, it’s easy to question whether or not home coverage is really worth it.

With this guide, we’ll help you decide on the matter by providing you with the pros and cons presented by home insurance policies.  In addition, we’ll also include various resources relating to insurance products, services, and the like.

Home Insurance, the Good and the Bad

Home Insurance, the Good and the Bad

Benefits of Home Insurance

The first and most obvious benefit to having home insurance is the fact that you’ll be covered against property damages.  The extent of this coverage will always differ between policies, but in general, plans with higher premiums will always have higher levels of coverage.

Home insurance can help you renovate or rebuild your home in the event of damage from things such as inclement weather, electrical fires, or natural occurrences.  A good policy can also cover the cost of replacing things like locks, doors, and windows in the case of a burglary.

A decent home insurance policy can sometimes be the difference between having enough money to care for your property, or having to take out a personal loan.  Unsurprisingly, many people will pick up a policy solely for protection against damages to their property.

In addition to protecting your actual home, home insurance policies can also be expanded to protect your belongings.  This means that things like TVs, jewelry, tablets, and laptops can be replaced-provided your policy covers them of course.

This also means that even if your belongings are taken in a burglary, you won’t have to shoulder the cost of replacing any lost items.  The only thing you’ll need to worry about is finding the right store to replace your belongings.

Drawbacks of Home Insurance

The biggest problem New Zealand homeowners have with home insurance policies is the fact that they can be particularly expensive.  To insure the contents of a home alone would require a premium between $500 and $700. 

Add to this the premium required to insure an actual property, and you’ve got a sure-fire way to lose up to a thousand dollars every year.  Because they are so expensive, many folks often opt for property coverage alone without the benefit of insuring their home’s contents.

In the event that you intend to stake a claim, insurance policies will also require you to pay an excess fee before any action can be taken.  This is a separate expense from your annual premium and it can present yet another cost to be wary of when purchasing a policy.

When it comes to the question of whether or not home insurance policies are worth it, we would say it depends.  If you have sizeable assets and the means to purchase a policy, the protection offered by a policy is definitely worth considering.

Now that you know a bit more about the pros and cons of insurance policies, we hope you’ll be better able to decide if a home insurance policy is right for you.