You finally own your dream first home—congratulations! Now that you have the home loan all paid up and the settlement date on your calendar marked in red, what’s remaining than popping those champagne corks? Well, insuring it deserves attention. This is the place you need to get familiar with.
If you’ve been living in a rental all this while, you probably took contents insurance for your valuables but now as a homeowner you’ll have to consider investing in a good building insurance policy.
In fact, you’ll need to have to do more than think about it as you’ll soon realise that one of the mortgage conditions is to have sufficient building insurance cover.
What does a building insurance policy cover?
The main reason for taking a building insurance cover is to protect your property against things that are uncertain and beyond your control like floods, fire or other natural disasters.
Two covers are available to choose from:
Sum insured that covers damage for a fixed amount
Complete replacement cover that consists of all costs of rebuilding your home and restoring it to the original state before hailstorm smashed all the tiles on your roof
The information contained in this article is of a general nature only. It does not take your specific needs, objectives or circumstances into consideration, and is not financial advice, legal advice or otherwise a recommendation to purchase any financial product or insurance policy. You should seek your own independent financial advice from a qualified financial and insurance adviser before making any financial decisions, and seek your own independent legal advice from a qualified solicitor before making any decisions of a legal nature.