{"id":2844,"date":"2022-06-19T03:47:49","date_gmt":"2022-06-19T03:47:49","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/which-insurances-do-you-need-to-consider-after-buying-a-property\/"},"modified":"2022-06-19T03:47:49","modified_gmt":"2022-06-19T03:47:49","slug":"which-insurances-do-you-need-to-consider-after-buying-a-property","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/which-insurances-do-you-need-to-consider-after-buying-a-property\/","title":{"rendered":"Which insurances do you need to consider after buying a property?"},"content":{"rendered":"

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Amid the excitement of buying a new property, it\u2019s easy to let down your guard when it comes to insurance.<\/p>\n

But there are a number of options you should consider to get peace of mind against the unexpected.<\/p>\n

Whether you\u2019ve found your forever home or you\u2019re buying an investment property, these are the 3 key insurances you\u2019ll want to be aware of.<\/p>\n

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1. Home insurance<\/span><\/h2>\n

It\u2019s been on a lot of people\u2019s minds recently due to the devastating floods \u2013 and home insurance isn\u2019t something you want to go without.<\/p>\n

Home and contents insurance offers cover for both the structure of your home and your valued possessions kept inside it, such as jewellery, furniture, and laptops.<\/p>\n

When you apply for a home loan, many lenders only issue a fully unconditional mortgage if you have an adequate level of home insurance, even if, strictly speaking, it isn\u2019t a legal requirement at this stage of the process.<\/p>\n

Your new property falls under the responsibility of the seller until settlement.<\/p>\n

But, to be on the safe side, many sensible buyers choose to get home insurance from the time the seller signs the contract.<\/p>\n

And, in fact, the time you become responsible for any damage at your new home can vary from state to state, as Finder\u2019s guide to first-time home insurance<\/a><\/u> outlines.<\/p>\n

If you\u2019ve bought an investment property that you\u2019re immediately renting out, then landlord insurance can protect you for your home and contents \u2013 plus, it\u2019ll also cover you for loss of rent and malicious damage by your tenants (including replacement locks if you have to evict someone).<\/p>\n

In other words, it\u2019s a no-brainer for prospective landlords.<\/p>\n

Interestingly, if you buy your home outright, you’re not legally required to get home insurance.<\/p>\n

However, you’re putting yourself at a big risk if you go without coverage.<\/p>\n

You could find yourself footing a bill worth hundreds of thousands of dollars or being without anywhere to live if disaster strikes.<\/p>\n

These can reduce the cost of your premium by up to 30%.<\/p>\n

After you\u2019ve found a policy, be sure to make a note in your calendar 11 months later to compare brands and see if you can get a better deal than you’re currently on.<\/p>\n

2. Title insurance<\/span><\/h2>\n

Title insurance is a specialist type of insurance that can cover a range of risks that could impact the ownership of your home \u2013 and your legal rights to it \u2013\u00a0following your settlement.<\/p>\n

Your lender will already have a title insurance policy over your property.<\/p>\n

But its policy doesn’t cover you.<\/p>\n

A title insurance policy differs from home and contents cover in that it\u2019s a one-off payment. You won’t pay ongoing premiums.<\/p>\n

There\u2019s also no excess to pay if you need to make a claim at some stage in the future.<\/p>\n

What\u2019s more, title insurance provides protection to home buyers in a number of situations outside of what\u2019s included by home insurance policies.<\/p>\n

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For a residential home buyer, the title insurance covers risks like:<\/p>\n