Many people begrudge paying for insurance, but the peace of mind that comes from knowing you, your family and your home are protected against unforeseen events is priceless! Insurance provides protection against short term financial hardship and set-backs that could have a serious long term effect on your future financial security.
In this article, we explain the types of insurance you should think about when buying a home.
This type of insurance provides an income safety net should you become sick or injured and are unable to work and make your home loan repayments. You may also like to consider trauma/critical illness cover, total and permanent disability insurance and life insurance – that way if you are unable to go back to work, you won’t lose your home.
Mortgage Protection insurance covers the cost of your mortgage repayments if you die, or become seriously ill. It should be noted that it is only meant to cover your mortgage repayments and not any other expenses for you or your family. It may be a wise choice if you already have some other kind of life insurance – say with your super plan.
Building & Contents
Building or home insurance protects against the cost of rebuilding or repairing your home from things that are outside your control, like fire or natural disasters. You can opt for total replacement cover (to rebuild your home as it was prior to the event), or sum-insured cover (coverage up to a certain amount). When you buy a home, your mortgage broker will most likely recommend that you insure the property before settlement day.
When choosing your policy, make sure you have the right amount of coverage, as well as the right type of insurance for your actual needs. Talk to us, as we are an invaluable source of information to help you determine this.
Contents insurance protects your belongings, including carpets, rugs and curtains, in events such as fires, storms or theft. Often it will be bundled together with home insurance. Many people consider it a must-have to protect from those smaller disasters – even a contained kitchen fire could render your home unliveable until you can repair the damage.
How can your mortgage broker help?
You’ll find we can offer a range of options and make it easy. What’s great is that we can do it all – from setting you up with a home loan that meets your financial circumstances, and also help you to arrange the right insurance to protect you and your family. We can access some of Australia’s most respected insurance providers, and offer you a competitive price on your insurance needs. Bundling insurances together will also help you save!
For an honest and unbiased opinion or to discuss your requirements with an industry expert, talk to Think and Grow Finance today on 03 8390 5855 or email [email protected]