Good vs Bad Home Insurance – A Homeowners Guide
When placing home insurance, the gap between a quality policy and a poor one can cost clients thousands at claims time. Here’s what separates them.
What Makes a Good Policy
Comprehensive coverage.
Quality policies cover the events that matter:
- Flood and storm surge as standard (not excluded or overpriced and add-ons)
- Accidental damage beyond just glass
- Escape of liquid without excessive carve-outs for slow leaks
Reasonable Sublimits
Watch for adequate limits on:
- Jewellery and valuables
- Temporary accommodation (six months of rent after a fire isn’t cheap)
- Removal of debris
Red Flags: Signs of a Bad Policy
Rock-Bottom Pricing
Suspiciously cheap premiums usually mean:
- Extensive exclusions buried in fine print
- Unreasonably low sublimits
- High excesses that make claims unviable
Poor Water Damage Cover
Avoid policies that:
- Exclude flood entirely
- Have confusing storm surge definitions
- Carve out “slow leaks” too broadly
Inadequate Theft Cover
Watch for policies requiring forced entry for all theft claims or imposing low sublimits on portable items.
What to Compare
Don’t just compare premiums. Check:
- Sum insured basis – Replacement vs indemnity
- Insured events – Is “storm damage” the same as “storm and rainwater damage”? No.
- Every exclusion – Tree roots, wear and tear, maintenance, pests
- All sub limits – Map them out in a table for clients
Your broker should find the right policy, not the cheapest:
- Calculate accurate sums insured
- Explain exclusions in plain English
- Document your recommendations
- Conduct annual reviews
Good policies provide comprehensive protection with clear terms and fair pricing. Bad policies use low premiums to hide exclusions that leave clients exposed at claims time.
Our brokers will assist in understanding the difference between policies and the potential impact on your individual situation. Contact the team at Provide Insurance to discuss your policy.