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Regardless of where you live in Australia or around the world, home insurance is vital to ensure that one of your most important investments is protected in the event of an accident or an emergency. There are a variety of insurers that offer a whole host of policies, and finding the one for you can be very important. Here, we look at some statistics that surrounds home insurance as a whole that can help you to consider your options when looking for a policy.
One important thing to consider is that you are fully protected against any event that can happen that may mean you need to claim. Studies in other countries have found that anything up to 66% of homeowners do not spend enough money on home insurance. Even though it is a good thing to search for the insurance deal with the best value for money, underinsuring can mean you pay out more in the event that you need to claim and your policy doesn’t protect you.
Another interesting statistic is how much you are covered for should you need to claim on your policy. In Australian Dollars, it is understood that the average currently hovers at around $130,000 for what an insurer will provide if you need to make a claim in the most extreme of cases. However, with costs higher in property due to the economic climate, it could be worth investigating whether you could get liability cover which extends to triple this or more.
What can appear to be the most trivial of circumstances in your life and home can mean a significant addition or deduction to the total amount of home insurance that you pay. For example, many insurers opt to give higher premiums to those who smoke inside their homes due to proportional estimates which place the amount of residential fires in Australia at around 2,200 per year.
Another fact that surrounds home insurance is that home insurers see newer properties as of a lesser risk than older homes. Because the electrical wiring of properties are better and less likely to fail in recent builds, the premiums that cover such houses are markedly less than when compared with older houses.
Other graphical statistics that can be noted and relate to home insurance in Australia is that on average, claim sizes have gone up significantly in the past eight years that the Australian Bureau of Statistics has been gathering data. This can mean that you could be in for some trouble if you are one of the two-thirds (66%) of people underinsured by an average of 27% in total.
If you can help it, buying a home insurance policy sooner than later can help you, too. Even though policy prices have been bobbing up and down recently and have fluctuated for a number of years, new highs were reached this year with the amount of money Australians are paying for an insurance policy.
Taking heed of the statistics that are out there can be incredibly worthwhile. Then, you can ensure you can be part of the statistics for the beneficial things about home insurance and you can avoid adding to the statistics of those who haven’t been covered the right way.