Property insurance

Building insurance covers the structure of the building to cover risks such as fire, landslip etc. It should provide you with adequate cover should you need to repair or replace your home (ie, house, garage, shed). The responsibility to insure the property passes to the buyer on exchange of contracts.

 

Building contents insurance

Content insurance covers the contents of your home in the event they are destroyed, damaged or stolen

 

Landlord Insurance

Landlord insurance covers an investment property owner from financial losses or damage to their property as a result of malicious damage or unexpected events such as fire, storm and flood. The policy covers the building but does not cover any personal property belonging to tenants.

Provision for loss of rent should your property become untenable due to damage caused by an insured event may also be included.

Common features of a landlord insurance policy include malicious or intentional damage to the property by the tenant or their guests, theft by the tenant or their guests, loss of rent if the tenant defaults on their payments, liability including a claim against you by the tenant and legal expenses incurred in taking action against a tenant.

 

Mortgage protection and lender’s mortgage insurance (LMI) are for two different situations.

Lender’s mortgage insurance

LMI is usually required where your deposit is less than 20% of the purchase price of your property and protects the lender in the event that you default on your repayments.

It makes sense to ensure that you can continue to meet your commitment in the case of unforeseen events.

 

Mortgage protection

Mortgage protection however is insurance that supports you in case you become involuntarily unemployed or are unable to work due to illness or disability. It makes sense to ensure that you can continue to meet your commitment in the case of unforeseen events.