When it comes to home insurance there are generally 3 types you might encounter:
If you have been renting chances are that you have already got contents insurance for your belongings. As a homeowner, you’ll need to your lender will require you to have adequate building insurance coverage in place at the time of finance.
What does building insurance cover?
Building insurance exists to protect you against things beyond your control like fire, flood or a natural disaster. There are two types of cover to choose from: total replacement cover or sum insured.
Landlord insurance – insurance for investors
Landlords insurance can cover you for accidental or malicious damage to both the structure of your property and any contents that you may have leased to your tenants for their use.
Do I need contents insurance?
Unlike buildings insurance, your lender will not insist that you have contents insurance. That said, it is a good idea to have it in place in case the unexpected happens and your home is burgled or there’s a fire.
How much should I insure my property for?
The price you pay for a property and the cost to rebuild it are not the same thing. The purchase price is the combination of land and building values, whereas your building insurance will cover the cost for the raw materials and labour required to completely rebuild a house in the event of total disaster. Depending on the lender you may be given a minimum amount to insure for, or it will be left to your own discretion.
When should I buy home insurance?
It is recommended that you have building insurance in place when you exchange contracts as this is when you become legally obliged to buy, though this may vary from state to state.
You should also get your contents insurance organised before you start moving your things to cover you during transit.
What about if I live in a strata property?
Residential strata insurance, also called body corporate insurance, covers common contents and property under the management of a strata title or body corporate entity. Owners of strata units typically share the premium costs of strata insurance as part of their strata fees and liabilities. Make sure you have appropriate contents cover for your belongings, and for those other things strata insurance does not protect.
Murray Home Loans has a referral arrangement in place with Allianz which offers additional discounts to the normal process. Insurance premiums do vary from one insurance company to another, so it is worth shopping around.
For New Loans
Allianz offers FREE building insurance cover for up to 90 days during your settlement period when you buy a 12 months Allianz home insurance policy with buildings cover.
For Refinanced loans
Enjoy a discount of up to 10%* when you take up Allianz home insurance for your refinanced property
Please contact Murray Home Loans to be referred to Allianz to qualify for the above bonuses.