Bought a property? Don’t forget to protect your valuable real estate asset.
- Property owners should consider protecting their valuable asset
- Home insurance covers your home against insured events
- Contents insurance protects personal items like furniture and TVs
- The kind of insurance you need depends on what sort of property you own and how you will use it
If you’ve just bought a property, you’re probably feeling pretty pleased. After all, a real estate purchase – whether it’s a home or an investment – is generally one of the largest and most important purchases you’ll ever make!
With that in mind, it’s vital to insure your new property. So, where should you start?
What sort of insurance is available for property owners?
There are two kinds of insurance options available to property owners who live in their home: home insurance and contents insurance.
- Home insurance covers damage to the building and its fixtures (such as cabinetry and plumbing). It offers protection against damage caused to your home through insured events which may include burglary, fire and storm. Home insurance can also provide legal liability cover if you are found liable for paying compensation following an accident – for example someone is accidently injured on your property.
- Contents insurance provides financial protection against damage, loss or theft of your personal possessions within your home. This includes household items and personal belongings. Think furniture, computers, TVs, clothing, jewellery and so on. Some insurers may provide cover outside of the home via optional covers for an additional premium.
When should you take out home and contents insurance?
Once you are considered responsible for the property you are purchasing it is important to consider home and contents insurance. In Victoria and New South Wales, you are responsible for your property – and any damage it sustains – from the date of settlement, with many purchasers choosing to insure their new property as soon as they have signed the contract of sale.
What covers could property owners consider for their insurance?
If you’ve purchased an individual property such as a house, as the new owner you are responsible for insuring the building and its contents. Building insurance will insure your home buildings for loss or damage caused by insured events and contents insurance will insure your possessions.
If you’ve bought an apartment, the building might be insured via a strata or owners’ corporation plan. You’ll need to check exactly what the plan’s insurance covers, because some internal fittings and fixtures may not be covered. In the case it does cover the building, you may not need to cover the building, but you may want to consider contents insurance to adequately insure its contents.
If you are going to rent out your property, consider landlord’s insurance instead, to protect your investment property or contents you provide for your tenant’s use.
At BankVic we help property owners to protect their most valuable asset. Call us on 13 63 73 or visit BankVic home insurance for an obligation free home and contents insurance quote.