A simple guide to property & building insurances

Insurance is best known for its value in protecting and safeguarding your investment in physical assets like buildings and possessions. 

Below is a shortlist of some of the most common property and building insurance policy types and terms you’ll need to know.

🏡Home Insurance

Covers your building against things like flood, fire, explosion, natural disasters such as earthquake, storms or lightning strikes, damage by vandalism or break-in, and liability to third parties.

However, home insurance is not a one size fits all product and the level of cover varies between insurers, property location and condition.  The cost of your cover will depend on the type of cover – either a sum insured (agreed value) or total replacement cost (to restore home to original condition pre-event), types of inclusions, listed events and excesses.

As a golden rule, the less you pay, the fewer events you are covered for and/or the higher excess (initial out of pocket expense before the loss is covered) at claim time. 

Common “extras” ( additional costs) are available to purchase to increase the amount of cover for things like fire, accidental damage, flood and storm damage events.

Contents Insurance

Protects your valuable possessions, such as furniture, electronic items, whitegoods, sporting equipment and jewellery – so you can repair or replace them if they are damaged or stolen.

Contents Insurance is usually for a sum insured and requires you to specify items of high value.

Home & Contents Insurance

Most insurers offer a combined home and contents insurance package for homeowners. It combines the benefits of both Home and Contents Insurance policies. 

Again, these policies are influenced by the location and condition of your property and vary from insurer to insurer. So it is important to closely read the product disclosure statement to ensure you understand what is included, excesses payable and types of events covered by this policy.

🏘 Landlords Insurance

This is a specific type of insurance to cover properties that are being rented or leased. A Landord Insurance policy covers you against events such as the theft or burglary of any belongings you have leased to your tenants, and natural disasters such as storms. Additionally, you can get insured for accidental or malicious damage to the structure of your property.

Landlord Insurance is available for both residential properties such as holiday units and domestic rental houses, and commercial properties including industrial warehouses and retail stores. To determine which policy is right for you contact your broker. 

Landlords Insurance formerly included cover for loss of rent due to a tenant’s rent default, however since the COVID-19 pandemic of 2020, insurers have pulled back on rent default cover. For more information read this article from CHOICE

https://www.canstar.com.au/landlord-insurance/covid-19-changes-landlord-insurance/ 

Renters Insurance

Renters insurance is a type of contents insurance designed specifically for people who are renting a property. It works to protect your belongings if they are stolen, damaged or destroyed due to certain events. It is similar to and sometimes simply listed as, Contents Insurance.

For businesses renting a commercial space, this type of insurance including protection of equipment and public liability is included in a “Business Pack” or tailored business insurance policy.

🏢 Strata Insurance

Strata Insurance is specialised insurance that covers common property and contents under the management of a strata title or body corporate entity. This may include common areas, lifts, swimming pools, car parks, walls, windows, gardens, ceilings and floors.

Commercial Strata cover can include:

  • Buildings and common contents
  • Public liability fidelity
  • Office bearers liability
  • Voluntary workers personal accident
  • Machinery breakdown
  • Workers compensation
  • Broad catastrophe cover
  • Loss of rent available for commercial & mixed occupation properties

Contact your Allsafe broker today for more information.

 

The information on this website is to be regarded as general advice. Your personal objectives, needs and financial circumstances were not taken into account when preparing this website content.