November 19, 2019 by Jessica Halcrow
No matter if you’re just starting out on your property buying journey, or you’ve bought and sold properties for many years, insurance should always be top of mind. Since property is one of the biggest assets that you’re likely to purchase, ensuring that any place you own is covered for the unexpected will give you comfort and could save you a lot of stress, time and money in the long run. Mortgage broker Kevin Gray can help you access the right insurance and will guide you through what you need to know, as well as when you need to get it.
So, what should you know about home and contents insurance, and how does it differ for property investors? We’ve covered the basics on what you should know about getting the right coverage.
What is home and contents insurance?
For any homeowner or landlord, home and contents insurance are two separate insurance policies that provide financial cover for unexpected or accidental damage to your property or your belongings within it.
While no one wants to anticipate the worst, home and contents insurance lets you rest easy knowing that you and your family are covered in case something goes wrong.
What does home insurance cover?
Home (or building) insurance provides financial cover for costs associated with re-building or repairing damage to your property as a result of certain events such as fire, theft, accidental breakage of glass and even vandalism.
The extent of cover you receive is based on the type of policy you purchase, and depending on your circumstances and where you live, your home insurance can be tailored to suit your specific needs.
At Mortgage Choice in Baulkham Hills, we work closely with reputable insurance provider Allianz, whose range of policies can be tailored to meet the needs of virtually any of our customers.
How is contents insurance different?
While home or building insurance covers any damage done to the property itself, contents insurance can cover just about everything else that you have within your property.
Contents insurance is basically put in place to provide financial cover to replace your possessions in case they are lost, stolen or damaged. This type of insurance policy can cover everything from jewellery to your lawn mower, blinds, television and just about everything else contained within your property.
When should you get insurance for your property?
Before you sign the contract on any new property, it’s important to know when you need to start thinking about the insurance required to cover your new asset, and when it has to be put into place.
Once the contract of sale is signed, you will be liable for any of the damage done to your new property, so it’s vital to have the right insurance in place. While contents insurance typically won’t be an issue until you’ve moved in, if any damage is done to the building, then you’ll be responsible for any costs to fix it once you’ve signed the property contract.
Also, some lenders require you to have a certain level of insurance coverage in place before the finance can be approved. By speaking with Baulkham Hills mortgage broker, Kevin Gray, you’ll be able to prepare for the day you sign on the dotted line and be confident that you have the right insurance in place at that crucial time.
What sort of insurance do you need if you own an apartment or unit?
For units, apartments, townhouses or any property that has a Body Corporate or Strata, there are other details that you’ll need to consider. While contents insurance should be put in place for your own possessions, the building insurance can be a bit trickier.
There’s generally cover in place for the building and common contents of properties that are part of a body corporate, which often includes the building structure, shared areas and some shared contents, such as gym equipment.
However, it’s important to check what’s included as part of your Body Corporate insurance. Check that things like fire damage to carpets or fixtures are covered, as there can be a considerable gap between what’s actually included and what you believe is included if an unfortunate event occurred.
Mortgage broker Kevin Gray can help you determine what coverage you require to bridge the gap between the insurance cover provided by your Body Corporate, and the contents insurance you put in place for your own items.
What’s landlord insurance and why should property investors have it?
Landlord insurance is another type of insurance available to those who rent out a property that they own. It protects landlords from things like tenants damaging the property or if they leave without paying the rent.
You can imagine the peace of mind that this type of insurance gives to property investors who can’t regularly monitor the activities of their tenants, plus the premium cost for landlords insurance is tax deductible for investors.
Through Allianz insurance, Kevin Gray can assist property investors to put landlords insurance in place so you can rest-easy that your investment property is covered for whatever the weather or irresponsible tenants may throw at it.
It’s critical to ensure you’ve got the right level of coverage in place
Regardless of whether you’ve purchased a home, unit or an investment property, calculating the correct level of coverage is critical.
When it comes to home or building insurance, our Baulkham Hills team can help you estimate what level of coverage you’ll need based on the square meterage of your property, as well as things many clients take for granted, including what it could cost to pay for a demolition and complete rebuild of your property.
To estimate the correct level of contents insurance, Kevin Gray knows from experience that values add up quickly and clients can easily underestimate the amount their possessions are worth. Kevin and his Hills District mortgage broker team have comprehensive worksheets that will help you accurately calculate the value of your contents so that you’re not left short if the worst occurs.
More reasons to chat to Kevin Gray about Allianz insurance
As an experienced mortgage broker, Kevin Gray cares about the products and policies our team recommends. Allianz is one of those providers that Mortgage Choice in Baulkham Hills is happy to offer to its clients for their home, contents and landlords insurance needs.
As a bonus, Allianz is offering a couple of great incentives for those seeking the right insurance for their needs:
- 90 Day Free Buildings Cover – our customers can now secure up to 90 days of free building cover through Allianz, making the need to ensure you have coverage in place even easier,
- Allianz ‘Win a Smart Home Package’ – all new business, home and landlord policies purchased by 8 December 2019 will go into the draw to win a smart home package worth $10,000 – check out the T&Cs here or speak to Kevin Gray for more details.
So, if there was ever a time to speak to our team about whether this type of insurance is right fit for your property, now is a perfect time to find out.
Get the right home, contents or landlord insurance for peace of mind
Talk to mortgage broker Kevin Gray at Mortgage Choice in Baulkham Hills, who has spent over 10 years helping home buyers achieve their property goals and put the right insurance protection in place, across Sydney and The Hills District.
Contact Kevin and his team today on 02 9639 0233 or click the ‘Contact us’ button above and we’ll call you to answer your questions or make an appointment.
