Guide to Home Insurance for first home buyers
Why do I need Home Insurance?
Good question! Luckily, there’s an easy answer. You need Home Insurance in case something bad happens to your house. Depending on your type and level of cover, that something could include weather events like storms and bushfires, or unfortunate incidents like break-ins.
If something does happen, then you’ll want to feel supported in getting your family feeling safe and sound, sleeping under their own roof again. AAMI Home Insurance can help.
It’s also worth noting that you may be required to have Home Insurance as a condition of your mortgage, so definitely double-check that.
What’s the difference between Home Building Insurance and Contents Insurance?
Home Building Insurance covers the building itself (your walls, your windows, your walk-in wardrobes, etc.), while Contents Insurance covers the stuff in it (your couch, your computer, your coffee machine, etc.). If you’re an owner-occupier, you probably need both.
For more detail on what’s covered under each type of insurance, feel free to check out the Product Disclosure Statements (PDS). They’re full of handy info.
What does home insurance cover, exactly?
Home Building Insurance covers your house—as we mentioned—and it also covers other permanent structures. These can include garages, sheds, carports and driveways.
Contents Insurance covers the stuff inside your house. This can include furniture, appliances, curtains—all sorts of stuff! There are a handful of things we don’t cover though, such as electrical appliances that no longer work for their intended purpose. For a more complete list of inclusions for both Home Building Insurance and Contents Insurance, check the PDS .
What will I be insured against?
Lots of things! Floods, storms, lightning strikes, earthquakes—even meteorites! Yes, we know meteorite damage isn’t likely, but it’s better to be safe than sorry.
You’ll also be covered for things like burglary and vandalism, or damage caused by animals that aren’t yours. Plus, you have the option of adding Portable Valuables Cover for an increased premium, meaning that personal valuables like jewellery, cameras or mobiles phones will be protected against loss or damage, at or away from home.
What is Complete Replacement Cover?
Complete Replacement Cover (CRC) is an optional extra that offers you your best protection against underinsurance.
With CRC, there is no set sum insured; that is, there is no maximum amount we’ll pay to repair or replace your home after an insured event. Once your claim is approved, we’ll choose to repair or rebuild your house as it was, or pay you the cash equivalent. So, this is a good option for people who aren’t sure how much it would cost to rebuild their home.
Of course, this additional level of coverage comes with a higher cost, though the exact amount will vary depending on your policy details. The best way to see how choosing CRC would affect your premium is to get a quote now. It’s easy to add or remove the CRC option during the quote process.
Can I get Strata Insurance if my home shares walls or areas with other people’s?
Yep! Our Strata Insurance covers residential properties under a strata title, body corporate, owners’ corporation or strata manager. It’s great for townhouses and flats, and one policy covers up to 10 properties on one block or in one building. It also includes cover for shared areas, like driveways and parking areas.
Unlike the appropriate volume for your party playlist, this is something that you and all your neighbours can agree on!
For more detail on any of the points raised above, please check out the PDS.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Consider the Product Disclosure statement before making a decision about this insurance. Contact us for a copy. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.