What should I look for in the policies?

1. Items covered : Does the policy cover personal accident and liability, loss or damage to valuables outside the home premises, in addition to the building, renovation and home contents.
   
   
2. First loss or average clause : Does the policy cover the full or only a percentage of the loss if you have under-insured your property?
   
   First Loss Policies are policies that owners don't have to fully declare the total value of the contents and building but they would be paid for risks such as fire, theft, busting of pipes etc. Average Clause is a Clause that states that owners have to fully declare the total value of the home contents and building to be paid the full loss in the event of a claim. If not, only a percentage of the loss would be paid.
   
   
3. Definition of terms : How are the risks defined in the policy? This is because different insurance companies define risks differently would pay different amounts in the event of a claim.
   
   
4. Excess clause : There is a minimum amount you must bear for yourself for every loss except in the event of fire. As the amount can be from $50 to $200 for each item, it would be advisable for you clarify with your insurance agent.