First home buyers guide to insurance | Realestate.com.au

Buying your first home is one of the most exciting things you'll do, and while you're caught up in the excitement, you probably aren't thinking about your insurance needs. But you should be. Here's everything you need to know to make sure you and your new investment are covered. So, what type of insurance is right for you? If you're buying a house, your best bet will most likely be looking at combined home and contents insurance. If you're buying an apartment, the building will be covered under the strata, so you'll just need to cover your belongings. An easy way to think of it is, home insurance protects your house, while contents insurance protects all the things that make it a home. To break it down further, home insurance is designed to protect against damages to the house itself. Contents insurance protects against damage or loss of your possessions, resulting from a range of events like fire, flood or theft. Although it's not essential, it's a smart thing to have for peace of mind in case things go wrong. Depending on your state and your individual contract of sale, you may need your building insurance to be effective from settlement date or as soon as contracts are exchanged. Your solicitor or conveyancer should be able to tell you what applies in your situation. You only need contents insurance at the new address once you're ready to move in with your belongings. Having the insurance also comes in handy when moving. It means that all your contents can be protected against certain loss or damage during the move. You'll need to provide as much accurate information about your new home as possible. Questions about the age, size and construction of your home will give your insurer the best idea of how to insure the property accurately. Incorrect details could have consequences down the road when it comes time to make a claim, and they could also result in a higher premium than you should be paying, so make sure you get them right. Buying a house can be a stressful time, so make it easy on yourself by putting all your ducks in a row well before you start packing. Then all you need to worry about is celebrating your big purchase.