Insurance Explained
Protecting Your Great Australian Dream!
Purchasing a home is a significant milestone, offering both stability and potential financial growth. As you embark on this exciting journey, it's essential to protect your investment. Insurance plays a crucial role in safeguarding your home and belongings.
Consider these essential types of insurance:
- Homeowners Insurance: This covers damage to your property and belongings caused by events like fire, theft, or natural disasters.
- Contents Insurance: This protects your personal belongings within your home.
- Landlord Insurance: If you plan to rent out your property, this covers potential damages and liability risks.
- Mortgage Insurance: This protects the lender in case you're unable to repay your mortgage.
- Short-Term Rental Insurance: If you plan to use your property for short-term rentals (e.g., through platforms like Airbnb), this specialized insurance covers property damage, liability, and lost rental income.
By understanding the importance of insurance and taking the necessary steps to protect your investment, you can truly make your Great Australian Dream a reality and securing the right insurance coverage is crucial to protect your significant investment. Property insurance requirements vary across states and territories in Australia.
It is advisable for buyers to obtain insurance before the property settles. When applying for a home loan, both you and the lender have a financial interest in the property, and the lender may require proof of insurance after you sign the contract. It is essential to consult with your solicitor regarding the risks associated with your real estate contract and property insurance.
In Queensland, a standard real estate contract states that the buyer is responsible for the property from 5 pm the next business day after signing the contract. Sellers may exercise this clause in case of property damage, emphasizing the need for insurance coverage.