We know it sounds boring, but insurance is a big deal when you’re a homeowner. And it’s not just about protecting the bricks, mortar and everything you have inside the house. It’s about protecting your greatest assets – you and your family.
Only about 4% of Australians with children have adequate insurance, making us one of the most underinsured countries in the world – ranked at number 16 on the global scale to be exact. The general consensus is that should anything happen to our home, income or ability to pay off our mortgage many of us are happy to sell an asset, rely on Centrelink or use our savings.
Just to make sure you have your bases covered, check out our list of the top 3 basic insurances you need to have if you’re a property owner. It’s also important to make sure that you factor these costs in when considering purchasing a property.
#1 basic insurance for home owners: Home and contents insurance
Most Australians understand the significance of Home and Contents insurance, and like insuring your car, is the most likely insurance to be purchased out of the three. It protects you financially if your home or the contents of your home are damaged by fire, storm and other natural causes or your property is burgled.
Electronics, musical instruments, jewelry and a range of other items can be covered under home and contents insurance, and can help give you peace of mind that you’re covered should your property be damaged. The last thing you want to be worried after a fire is how you are going to pay to replace everything. While home and contents insurance is relatively low cost and can be purchased easily, make sure that you know exactly what you’re covered for.
#2 basic insurance for home owners: Income protection insurance
Many Aussie’s don’t think twice about insuring their home and car, but hesitate when it comes to protecting their ability to earn an income. Most likely your income, and your ability to earn it, is your largest asset and is the most important factor in paying for your lifestyle and your home loan.
Income protection insurance usually pays up to 75% of your income over a short or longer period of time if you are ill or injured and unable to work. Schools fees, mortgage repayments, medical expenses and living costs (like food & petrol) can all be covered while you recover. Even if you are only out of work for a short period, income protection insurance could mean the difference between not having to think about your finances, and having to sell assets to cover your costs.
But there is some good news here. Income protection insurance is tax deductible and can again, be relatively low cost. If the unforeseen happens, such as a cancer diagnosis or even a broken leg, you’ll know you have the funds to get back on your feet again – without putting a major dent in your savings or racking up debt.
#3 basic insurance for home owners: Mortgage protection insurance
Mortgage Protection insurance can take care of part, or all, of your mortgage payments if you get injured, become too ill to work or even die. That’s not a pretty picture, but we know all too well that illness and other accidents don’t discriminate. They can happen to any of us – so it’s important to be mindful of how you would cover a big debt, like your mortgage – should it happen to you.
Many of our customers confuse mortgage protection insurance and income protection insurance, but in reality they are actually quite different. Mortgage protection insurance exclusively covers mortgage repayments if you are unable, for a range of circumstances, unable to cover your mortgage repayment.
Unlike income protection insurance it cannot be used for living expenses, like food or bills. Mortgage protection insurance can cover other insurances like Involuntary Unemployment cover, Death or Terminal illness cover or Critical Illness cover – which is the most claimed upon cover in Australia.
Let us help you
The reality of what can happen in life means that when you own a home you need to get all your insurance ‘ducks in a row’. Let us help you make sure that you have all your bases covered when it comes to your mortgage, your income and your family.
Book your complimentary appointment with our team today by calling Deepak on 0488 988 399 or clicking on the button below.
