When it comes to safeguarding your belongings, whether it's your dream home, valuable items in your home, or your car, insurance is a safety net. Choosing the right insurance can save you from financial stress in the face of unexpected events. To help you make an informed choice about the right level and type of insurance cover you need, here are three key factors to consider when buying house, contents or vehicle insurance.

1. Know what you need

Before diving into the world of insurance policies, have a clear understanding of your needs and priorities.

Assess your risks:

Start by evaluating the risks associated with your specific situation. For homeowners, house insurance is likely a condition of your mortgage, and the level of insurance cover your need will depend on the cost to replace or rebuild your property. Factors like the property’s location, value, and any potential threats it could face are important considerations.

For contents insurance, an inventory of your belongings and their estimated value will help you determine how much contents insurance you'll need, while for vehicle insurance, driving habits, type of vehicle you own, and how much coverage you might need – ranging from third party through to comprehensive insurance – will determine the overall cost.

Consider your budget:

Cost is understandably a major factor so determine how much you can comfortably afford to pay for insurance. Remember that while it's important to protect your assets adequately, over-insuring is an unnecessary expense.

Understand different policy types:

Familiarise yourself with the different types of insurance available in New Zealand. Common options include house insurance, contents insurance, and vehicle insurance (comprehensive, third party, etc.). Each type has its own coverage levels and features, so choose the one that aligns best with your needs.

2. Do your research

Once you’re clear on the types of insurance you need, research the available options, or get advice from an insurance adviser.

Compare insurance providers:

Consider well-established companies with a strong track record of customer satisfaction and prompt claims processing. Consult with an insurance adviser who may have valuable insights into reputable insurers.

Read customer reviews:

Look for online reviews and testimonials from policy holders, as these can often provide valuable insights into the real-world experiences of customers with a particular insurance provider.

Go over the policy details:

Carefully go over the terms and conditions of each insurance policy you're considering, paying particular attention to coverage limits, exclusions, excess amounts, and any additional features. Make sure you fully understand what it is that you're buying.

Ask questions:

Don't be afraid to ask questions or get clarification on anything you find confusing in the policy documents. Understanding the fine print is crucial to making an informed decision.

3. Cheap isn’t always best

It can be tempting to go with the cheapest option, particularly when New Zealanders are feeling the effects of the high cost of living and rising interest rates. But the lowest price doesn't always equate to the best value. When comparing insurance policies, pay attention to:

• Overall coverage: Cheaper policies may come with reduced coverage levels that can leave you vulnerable to unexpected expenses in the event of a claim.
• Excess amounts: Lower premiums often require higher excess amounts, meaning you'll need to pay in more out of pocket before your insurance kicks in.
• Claims process: A slower or more challenging claims process could cause undue stress when you need help the most.

Protecting the things you love

Buying house, contents, or vehicle insurance in New Zealand is a crucial step in protecting your assets and financial wellbeing. By understanding your needs, researching your options, and avoiding the temptation to choose the cheapest policy, you can make informed decisions that will ensure you have the right level of cover when you need it most.

Get in touch with an insurance adviser from Mortgage Express if you need insurance advice for house, contents or vehicle insurance.