For most people, their home loan is their single largest com­mit­ment, so it is import­ant that you are well pro­tec­ted to cover the repay­ments. There are a num­ber of products that can provide you with this pro­tec­tion. Below we have a look at some of the dif­fer­ent types of insur­ance you may want to consider.


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Home Build­ing Insurance

Your lend­ing insti­tu­tion will require you to have Home Build­ing Insur­ance in place in order for them to settle on your home loan, so it’s a good idea to arrange this straight away.

Home Con­tents Insurance

Many people chose to com­bine their home and con­tents insur­ance as this often works out cheaper than hav­ing two sep­ar­ate policies. Choose between two types of policies: indem­nity (where you are paid the depre­ci­ated value of your home and con­tents, based on the age and con­di­tion of item/s); and replacement/reinstatement, which pays out the full cost of rebuild­ing or repla­cing the item/s to an equi­val­ent stand­ard. There can be exclu­sions on such policies, so always read that bor­ing fine print.

Land­lord Pro­tec­tion Insurance

Cov­ers some par­tic­u­lar risks asso­ci­ated with rent­ing out a prop­erty that may not be covered by a typ­ical home and con­tents or strata titled policy eg loss of rent if Ten­ant defaults on rent payments.

Con­sumer Pro­tec­tion Insurance

Lets your mort­gage repay­ments con­tinue in the event of an acci­dent or ill­ness that puts your job and earn­ing power on hold.

Income Pro­tec­tion Insurance

Provides a ‘monthly’ income if sick­ness or injury makes it impossible to work in your usual employment.

Lenders Mort­gage Insur­ance (LMI)

This is insur­ance for the lender, not the bor­rower. It cov­ers lenders for the dif­fer­ence if the lender has to repos­sess your prop­erty but fails to recoup the full amount of bor­row­ings out­stand­ing against the prop­erty once it’s resold.

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Don’t Risk Under Insurance

A registered valuer can be con­trac­ted to value your home for insur­ance pur­poses. If you decide to do it your­self, add 10–20% to cover tem­por­ary accom­mod­a­tion, removal of debris, architect’s fees, and loss of rental for an invest­ment property.

We are not insur­ance brokers and recom­mend you seek your own advice from your insur­ance company.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia