There are four more common types of insurance related to Australian homes: home insurance, home contents insurance, public liability insurance, and landlord insurance. It is mandatory to buy home insurance for a house with a bank loan, while home contents insurance, homeowner's insurance, and others are voluntary, according to different insurance companies have different insurance plans, the fees are also different.
1. Building Insurance
Home insurance premiums are mainly purchased to cover the damage caused to the structure of the house due to force majeure events. Natural catastrophes such as fires, floods, windstorms, etc., as well as damage to the house caused by traffic accidents. All of these are covered by this insurance.
In most cases, home insurance costs $300-$700 a year.
2. Home Content Insurance
Home contents insurance can be purchased at the owner's discretion. It is mainly based on the value of interior decoration and furnishings. It should be noted that valuables such as jewelry are only covered if stated in the policy.
For the most basic home contents insurance, if the insured amount is $35,000, the annual premium is around $300.
3. Public Liability Insurance
Public liability insurance covers the financial liability of the insured for bodily injury, death and property damage to others (third parties) caused by accidents that occur while the insured is engaged in production, operation or other activities within the geographical area that the insured operates or owns.
4. Landlord insurance
This insurance can be relied upon in the event of the following: the tenant defaulting on rent, the tenant damaging property, or the tenant breaking the lease in the middle of the day. The tenant is not liable for any unusual changes to the property that are not made by the tenant.
Damages to valuable jewellery are usually not covered by home insurance, unless specifically stated in the deed. It is recommended that small supporting documents, such as valuable jewelry and securities, be placed in a safe deposit box set up by the bank for safekeeping.
The word "comprehensive", which is usually used in insurance policies, does not mean that all risks are covered. At its simplest, glass in doors and windows is usually not covered, nor are cars in garages.
Certain specific risks such as war, natural wear and tear, and damage caused by intentional or improper use by the insurer or family members are not covered. Therefore, you are reminded that you can take out a separate insurance for these things that are not covered by your home insurance to get a better protection.
In order to prevent theft, tenants can reduce the likelihood of theft by installing a burglar alarm in their home. In the event of a theft, the company responsible for installing the burglar alarm will be liable to pay you compensation, but it will not be The entirety of the damages, which is only what the company will pay you, will be what you will be able to receive under the insurance company's coverage Item.
If the home itself is in a natural disaster prone area, the insurance company may deny claims for damage caused by natural disasters, depending on the insurer and the terms of the insurance contract.
As a homeowner or investor, you must not sleep well during a disaster, fearing that your home or investment will be destroyed by high water. Therefore, homeowners are thinking of buying home insurance to protect their assets.
1. Whether the homeowner insures the property for the purchase price or the market value, it is not the right way to go. The value of the insurance is to secure all the assistance needed to rebuild after a disaster.
2. The insurance should cover the cost of demolition (of the destroyed home), cleaning, design and engineering, and project management after rebuilding, consulting fees, construction approvals and permits, and engineering fees for construction. More importantly, the incremental cost of rebuilding a home between the time it is destroyed and the date it is actually rebuilt.
3. Homeowners or investors can seek advice from a quantity surveyor who, as part of his or her business, provides homeowners with the correct information to insure the reconstruction of their property.
4. In the event of a disaster, the homeowner should determine the scope and amount of the claim and prepare a construction contract for the repair or complete rebuilding of the property and submit it to the insurance company.
5.If the investment property is partially damaged or completely destroyed by the disaster, the homeowner should also consider the depreciation deduction for home taxes. Homeowners should check their existing property tax depreciation schedule as it may need to be updated when the home is rebuilt or renovated.