Home Contents Insurance For First Time Home Buyers
Buying your first home is a big deal. Its a massive financial commitment and one that might be the biggest investment you make in your life. Making a wise investment can set you up for life. making a bad investment can put you on the back foot and have you struggle financially for life. Getting insured is an important part of buying your first home. You need to be very smart about it and resist the temptation of cutting corners.
Most mortgage brokers will insist on certain terms of insurance. After all, the home you buy also has risks for them since they supply you with the mortgage. Home and contents insurance is often referred to as the same thing, but its really two distinct types of insurance. One is a must, the other is options.
Home insurance or buildings insurance refers to the insurance for all the fixed parts of the building. This includes all fixed structures as well at the land on which the house sits. This type of insurance is so important simply because replacing any of this will be extremely expensive, Imagine a fire or a hurricane destroying a large part of your home. Some times the entire structure has to be rebuilt. In that case, building insurance will cover you and from that point of view its extremely important as it keeps your investment safe.
Contents insurance is that part of your home insurance policy that covers the contents of your home. Its basically all the "movable" parts of the building and includes furniture, electronic equipment and virtually everything that you can think of. Everything you insurance under your contents insurance however comes at a price. It is expensive as it has to protect you against theft, damage and a variety of things. Claims are usually high which is why insurers tend to load these premiums.
If you are a first time home buyer, then contents insurance may be something that you can save on. If you haven't got a lot of possessions yet, then maybe you can look at either taking out a "bare-bones" policy or maybe even just leaving it altogether. Do the maths and weight up the replacement cost against your contents insurance policy and see where you stand.
Many people pay for contents insurance month in and month out without ever claiming anything. Many people pay hundreds of dollars in insurance every month with possessions that hardly justify the costs. Insure what's important to you and be smart about your money.
