Different Types Of Insurance

Understanding the differences between landlord, building and contents insurance can help you make informed decisions about your property.

Why Insurance Is Important

It is important to consider insuring your property, whether it be your first home or an investment property. Insurance may provide a safety net for you personally if something unexpected happens, such as an illness or accident. It also gives you more options to replace, repair or be compensated for your property or belongings if something does go wrong.

As a rule, insurance premiums are paid at the time of purchase and cover a period of time. The cost of an insurance policy depends on its type and level of coverage. While this can be an additional expense that you’ll need to budget for, it might ultimately save you money if something goes wrong.

What Type Of Insurances Should Be Considered?

Before you purchase your first home or investment property, it is important to understand the different types of insurance available.

You should carefully read any Product Disclosure Statements (PDS) and Key Fact Sheets (KFS) before taking out a policy, to ensure you know what you’re covered for and what isn’t covered.

Insurance can be complicated. Aussie Broker can help you to understand what kind of insurance will work best for your needs. We can even help you to put insurance in place as part of your home buying process.

Types Of Insurance Policies

Protecting Yourself Against Damage & Unforeseen Events

If you are currently in a position to purchase your property, or if you are close to that point, we welcome the opportunity to discuss with you how you might meet your home loan repayments if your circumstances were to change.

In the event of a life-threatening illness or injury, or involuntary unemployment, mortgage protection insurance may help you meet your mortgage repayments. There are different types of mortgage protection insurance and if you need to claim, you could receive either a lump sum payment or a monthly payment of a certain amount of money or for a prespecified period of time.

This type of insurance should not be confused with Lender’s Mortgage Insurance, which protects your home loan provider.

Protecting Your Assets The Right Way

Home or Building Insurance Policies

Home insurance, sometimes called building or property insurance, can help to cover costs in case of a natural disaster such as a fire, flood, or storm as well as theft or other damage to your home including permanent fixtures and outbuildings.

Home-loan providers usually require you to have a current home or building insurance in place before they can settle the loan. This is because your home acts as security for the mortgage.

If you are purchasing a property that is part of a strata plan, your strata fees may include coverage for building insurance through the Body Corporate. Upon completion of your purchase, you may wish to obtain a Strata Report to find out what coverages are in place for the strata scheme.

During the application process for your home loan, our LMI Group brokers can help you with building or contents insurance.

Contents Insurance Makes Sense

If you were to add up the cost of all the items in your house—clothes, jewelry, furniture, white goods (appliances), kitchenware, artwork and computers—plus other fittings and furnishings, you would find that it would be quite expensive to replace them.

It is a good idea to have contents insurance.

You can purchase contents insurance separately from your home insurance, using an agreed type and level of cover.

Please review our contents policy. It’s important to keep it up-to-date as your circumstances and the items you have may change.

Landlord Insurance Is A Must

Landlord insurance is an investment property owners can take out to protect themselves against financial risks associated with renting their property. It may cover tenant-caused damage to the property, as well as any legal fees that could occur if a tenant files a lawsuit against you.

The policy may cover you for costs associated with loss of rental income or legal fees in some scenarios, and protect against a tenant who does not pay rent or any loss of rent due to the tenant breaking a lease.

A landlord may be liable for legal costs associated with removing a tenant.