Purchasing insurance is the best way to safeguard your property. You can be assured of protecting your property and your financial stability if something happens. However, you have to make several considerations beforehand.
Most Australian insurance providers will advise you to take up house insurance whether you own the house or you are renting it to a tenant. However, if you are financing your home with a mortgage, your insurance provider will undoubtedly insist on homeowners insurance to protect your property in case of unforeseen damages like natural disasters and fire.
Some of the factors that will tell the kind of premium that you will purchase are the home features and characteristics. The type, age, the structure of wiring, roofing and garage can affect your overall kind of insurance. Usually, old homes cost more to insure, and the costs can further differ if your home is made of brick or stone.
Your house location can also determine your premium. For example, if you are located in a high-risk area such as; areas prone to natural disasters like floods and earthquakes; crime infested areas or is exposed to any danger, your premium could be higher.
Also, some personal factors and characteristics may make your premium different from the rest. A good example is if you are a smoker, you may pay more premium than none smokers. Also if you have always had a clean track record in your credit history, your lenders can lower what you pay for insurance.
If you are planning to travel to another destination and still maintain your house, check if your existing coverage has travel insurance. Some of the homeowner’s policies include travel covers protection so you may not require another one.