Every year, most owners will get a reminder to pay their home and contents insurance, and then transfer the cash without understanding exactly what they’re buying.
So, what does the average policy cover?
Firstly, let’s differentiate between home and contents cover.
If you’re insuring your house, then your home policy should cover the structure of the building: (walls, roof, floors, windows, doors), fixtures (built-in cupboards, kitchen cabinets, bathroom fixtures) garages, sheds and fences, debris removal in case of an accident and legal liability.
There are other elements of the home that are also usually covered, like clotheslines, aerials, and masts, garages, carports, and other domestic outbuildings. Paths, paving and garden edges are also included.
The contents will include carpets (fixed and unfixed), furniture and furnishings, household electrical appliances, internal blinds, curtains and window coverings, and even potted plants.
As an experienced real estate agency, we cannot stress enough the importance of insurance and knowing the optimum time to buy a policy when you’re in the process of purchasing your next property.
Investors, first homebuyers, upgraders and downsizers should talk to their solicitor about when they should insure the property they’re about to buy. The rules are different in every state and territory.
If you’re purchasing a strata property – usually an apartment or condo – then the building insurance should be covered by your strata scheme. That’s because you have
shared the ownership of common property (external walls, foyers, or driveways).
A legal entity known as an owner’s corporation, strata company or strata corporation manages the scheme.
If you have specific questions, you should approach the relevant legal entity.
Normally, it will not provide cover for your contents or any structural improvements inside your home.
Some of these structural improvements might include a new kitchen or bathroom renovation, or a newly-installed air-conditioning system.
So, whether you own an apartment or a house, make sure you update the information on your home and contents policy to ensure you have the maximum possible coverage if the worst should ever happen.