During challenging times, we all desire for the peace of mind that comes from knowing you, your family and your home are protected against unforeseen events. 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 property. If you’d like to know more, talk to Fornaro about your requirements.
Income Protection
This type of insurance provides an income safety net should you become sick or injured, and 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
Mortgage Protection insurance covers the cost of your mortgage repayments if you become seriously ill or die. 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 – for example, with your super plan.
Building and 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. Your mortgage broker is an invaluable source of information in helping you to 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!
This article is for general information only and should not be considered personal advice.
