If you had to hazard a guess as to home many Australians are underinsured, you probably wouldn’t get to the 50% mark. The sad truth, however, is that this isn’t even near the actual figure, which is an overwhelming 95%.
The report also reveals that people believe their most important assets are their homes and cars. Many don’t know that their ability to earn an income is the real winner. But even so, the long list of insurances can leave consumers feeling overwhelmed.
While all insurances are important and good to have, a few are classified as absolutely essential.
Start With The Actual Property
To purchase the property depending on the size of your deposit you might need to pay Lenders Mortgage Insurance. Sometimes this is the only path to your first step into the property market.
Structural or building insurance takes care of the building. This includes to roof and walls and everything else that forms part of the structure of the building. A burst pipe and a roof leak will fall into this category should you need to claim, and most banks already have it as part of the loan agreement that it’s a requirement. If you don’t have your own, some banks have a product that they’ll automatically debit you for as long as they have the mortgage on their books. It’s important to note, however, that certain types of buildings already have that type of cover as part of the insurance for that development, such as flats and apartments.
Take Care Of You And Your Loved Ones
Personal insurances are essential when you buy a house, as there are lifechanging events that could alter the way you live and provide for your family. There are different events in life that require different insurances such as working abroad, taking on a dangerous career, putting plans in place in the event of dreaded diseases and disability, retrenchment, and of course, death. These are important to ensure that your lifestyle and that of your family is able to continue after such an event. There are also special insurances designed specifically for debt, which means that the cover is limited to the amount of debt the insurer incurs and reduces as the insurance amount reduces.
There Is Also The Interior
There is an unusual number of people who think that homeowner’s insurance and household insurance are the same thing. Homeowner’s insurance is the insurance taken for the structure, and household insurance takes care of the content. Your personal belongings will fall into this category, including home furnishings, jewelry, laptops, and more.
There are a number of other insurances that can be added to this list, such as renter’s insurance, landlord insurance, flood insurance, and more. These, however, are the basic and homeowners should have these in place first before moving on to the rest.
It certainly can be a maze and for that reason we have a referral network that can help in all aspects of ensuring that your Finanical situation is covered - If you want to know more.. just ask and we will be more than happy to help