Just like car insurance, the premium that you pay on your home contents insurance varies according to a number of factors— things like:

• Where your home is located—whether it is in a dodgy (high-risk) area or in the middle of suburbia.

• The actual value of the contents—if you have the latest $20 000 flat-screen TV the premium will be higher than if you have an old black and white thing of Mum and Dad’s.

• How often (if ever) you have made claims in the past.

• What the security is like on your home—whether you have an alarm, locks on all your windows, a chain on your door, etc.

• The construction of your home—whether it is wood, fibro or brick. This affects the likelihood of damage in the case of fires or storms.

While I was researching this section I realized that I had no idea how to actually make a claim. I found out that the correct process to go through in the unfortunate circumstance that something happens to your place is:

• Step 1—Contactthe police and let them know what has happened, as in the case of a fire or burglary.

•S t e p 2 —Do what you can to reduce the damage; for example, mopping up the water if your home has been damaged by a major storm.