That's why obtaining household and contents insurance is so important. Having house and contents insurance can add some comfort knowing that repairing the damage and replacing the contents will not come out of your own pocket, but be careful. Like any insurance policy you need to read the fine print.... purchasing house and contents insurance can be very expensive if done the wrong way.

Tip 1: Look for insurance companies that have discounts if you take out one or more insurance product through them. Majority insurance companies, will offer a reduced rate if you insure your house, bike/car, and other items through them.

Tip 2: Look at what you can add to your house to bring down the cost, like a car with and alarm system, it all counts. Installing smoke detectors, a security system may qualify you for a reduced rate, ASK!

Tip 3: When buying a house look for the nearest fire hydrant!! If you have a fire hydrant located in front of your property, insurers may also reduce your rate.

Tip 4: Whenever you shop for house and contents insurance, it is very important to read the entire policy before you sign anything, if your still not sure talk to friends. Despite what the name of the insurance policy is, it will not always cover all of the contents in your house.

Tip 5: If you are prone to floods, you need to ensure that the flood insurance is included in the policy, many South Africans in 2011 were caught out with this clause, the same applies for homeowners that live in areas that have a high fire risk. If you are new to the area, it is a good idea to find out if your neighborhood has any risks that may affect your house and contents insurance policy.

Tip 6: Watchout for the excess! Insurance companies may offer you a less expensive yearly premium which has a higher excess in an event that a claim is filed.

To sum things up make sure you cover all your bases, know what you need in terms of location and don't be afraid to ask neighbors. Read through the house and contents insurance policy before you sign it. ask as many questions that is needed so that you fully understand what you are signing.