An African man uses a calculator to calculate household insurance cover policy, understanding that it is very different to home insurance.

How Is Household Insurance Calculated?

The loss of precious household items is often compounded by the fact that you may not be able to afford to replace them. What few realise is that one in three Namibian homes remains underinsured. In this article, we unpack what is included under your household insurance cover and what sort of things you can query when looking at household insurance quote.

Home Vs Household Insurance

It’s not uncommon for folks to get these kinds of insurance plans confused. Home insurance typically refers to the insurance of the house itself – only the building – rather than the furniture, appliances and other items within those walls. Home insurance fills the financial gap when your house or other structures on your property come to harm. Examples of this include damaged fixtures and fittings, carpets, and burst geysers.

Ironically, it is household insurance that is focused solely on insuring those items that make a house into a home. These items can be located in both your private residence as well as any outbuildings on your property. If something happens to your house – such as a break-in or a fire, for instance – household insurance covers the cost of repairing or replacing those insured items, and help you feel at home once more.

Factors That Impact Your Household Insurance Premiums

Your residence

The biggest factor that insurance companies consider when determining someone’s premium is often where the insured lives. If your house is located in an area with a low crime rate, that is already a point in your favour. The same goes for homes with a number of safety features built into the building (e.g. smoke detectors, burglar bars, etc.). The more precautions you take to protect your home, the more affordable your household insurance can be.

The value of your household contents

We’ve gone into detail on the specific household items covered by this insurance in a previous article.  A broad overview would include the following categories:

  • Electronics
  • Specialty tools and equipment
  • Jewellery
  • Artwork

Before you start shopping around for household insurance quotes, take an inventory of the above items. Make sure that nothing is left unsecured, so you don’t have to worry when these important items are stolen or damaged. Of course, the amount of items covered in a policy will influence the monthly premium you pay for this service, so be sure to prioritise those items you cannot go without.

Your car

In recent years, it’s become common practice for many insurance companies (especially the ones on this website) to include your car in your household contents insurance. After all, your vehicle is likely to spend a fair deal of time under your garage roof.

However, it’s important recognise there is a distinct difference between car insurance and household insurance that covers your car as part of the contents of your home. If your car is damaged while it sits on your property, particularly under extreme conditions like fire and natural disaster, your household insurance should cover that damage. Depending on your insurer, you may also enjoy the benefit of towing and storage after an accident or attempted theft.

Which Is The Better Investment?

Both home and household insurance policies are worthwhile considerations for any homeowner. However, for first time homeowners, who have taken the time to find a house in good condition, it makes more sense to insure the valuables within that new house. After all, theft is a more likely occurrence than fire – although both are unfortunate events. Since you’ve taken such care in filling your house with all those things that make you feel at home, why not take the time to consider, just as carefully, what household insurance options are out there. With Get Insurance, you can get the ball rolling immediately by applying for household insurance quotes in minutes!