Your house is one of the prized possessions of your life. Having a place to call your own, that is your heaven and castle, and however small it is, matters to you.
So how do you protect the house against any damages? What if some unexpected disaster occurs, a fire, or flood? What about all the valuables inside it? Where would you live while the house is under repairs?
There are a lot of such questions to think about. And the one simple solution for all this is home insurance. So it is only imminent that you know about home insurance, why it is a crucial and necessary thing to have.
What does Home Insurance Cover?
There are two types of home insurances; building insurance and contents cover. Building insurance covers the house structure like the roof, walls, and openings. It also includes fixtures that are permanent like the kitchen and bathroom fittings.
There are building insurances that protect your house right from the construction stage too. The plan of the insurance policies vary, but it usually insures the building against fire, flood, storm, subsidence, theft, etc. Additional coverage could also be added upon request, for an additional cost.
Content Insurances, on the other hand, take care of the personal items or contents inside the house. With a vetting standard that satisfies only the pickiest, Renovation Builder Brisbane ensure that your expectations will be met, if not exceeded.
How to Insure House Under Construction?
Builders in Brisbane are required to have a valid insurance certificate for construction. This is to ensure that consumers have protection against incomplete or poor construction quality.
There is another option of “Contractors All Risks” cover, that offers security for third-party injury, property damages, and other malicious damages. This is a policy usually taken by both the owner and the contractor. There are also options to add the financing companies or anyone else who needs coverage to the policy.
The goal of such insurance is to ensure that all parties involved in the building are covered regardless of who caused it or the type of damage. It could also provide protection for the construction materials and any other work that has been already completed at the property. Our house and land packages Brisbane got you covered from $50K renovations to $5M projects.
Exclusion in Building insurances
Building insurance policies in Australia do not usually cover any damages caused by wear and tear nor from acts of terrorism. Also, depending on the policy, there is a maximum time for unoccupancy, after which the policy could be invalidated. It is vital that you read the fine print before signing up for insurance to know what you are taking up.
Is Building Insurance Mandatory?
It is not a written rule that you should insure your house. But if you are taking a mortgage, then the lender will insist that you have one. If you are buying a house and not building one, then you need to make sure that there is an insurance policy involved and mentioned in the contracts. Choose the right Brisbane builder for your home.
How to Choose Building insurance?
Building insurance should be enough to cover the cost of a rebuild of your house. In any case that you have to rebuild scratch, the insurance should pay for the rebuilt. A rebuild often cost lower than the market value of the house and its sale price. Custom Home Builders Brisbane gets you 3 competitive quotes from the most trusted builders.
The rebuild cost is calculated based on the mortgage valuation, size of the house, number of bedrooms, type of property, etc. Many online websites offer free calculators to do this. Remember that if you take a higher insurance amount, then you might pay higher for the cover you don’t need. Insurance too low could mean extra payments because of the shortfall.
Expert insurance builders Brisbane and building brokers Brisbane recommend that you regularly review the cost of a rebuild for the home to stay up-to-date. The values and prices are always changing. If you have renovated or extended your home, that could also affect the rebuild cost.
If you need help, always hire a third party or a surveyor to arrive at the proper value for the insurance.
It is best to compare multiple insurance policies and choose the right one for the level of cover, price range, and other terms and conditions. Get in touch as one of our friendly team members will get back to you within 48 hours.
Home and Contents Insurance Policy
Once the construction is completed and has reached the lock-up stage, it is time to get a home and contents insurance. On average, a family of four will have contents worth more than 50,000 AUD. It is essential to get the figure right, to get the right amount for the claim.
The best way to do this is to take an inventory by yourself. Add in the contents that are important, even in the garage and storage. It could include furniture, appliances, clothes, smart devices and whatever you feel needs to be insured. Choosing the right building designer is important as it can make or break your project.
For valuable items, it would be best if you have proof to show the value since the insurers tend to ask that. Also, check on how the payout works whether there is any limit for any particular item to assure that there is no shortfall.
Content insurances also have the arrangement on new for old. This means the policy will pay for a product that is damaged by fire or theft. But this often depends on the market value of the item at that point. This is one thing you have to choose for content insurances, whether you want new for old or indemnity policies. Accidental damage is one of the recommended add on, for valuable items like paintings or carpets getting destroyed.
Insurance and Renovations
If the house is covered with insurance, make sure you check with your insurer whether the renovations are also included. Even if it is, the coverage might depend on the scope and extent of the renovation. Finding the right finance broker can literally save you tens of thousands.
For renovation also, remember to take construction insurance and ask for a valid insurance certificate from the Brisbane builder. Once the renovation or rebuild is complete, the insurance has to be updated again to include the changes.
Before choosing an insurance policy, the first step is to make sure that your builder has a valid one for construction. Find the best builders Brisbane that offers by getting in touch with TrustCo.