Building Insurance – a true investment | Andrew Mirams

Buying a home or investment property is a costly business.Home umbrella

But the right insurance package is an investment that’s absolutely essential for every property buyer.

‘Murphy’s Law’ dictates that anything that can go wrong will go wrong, in the worst possible way, at the most inconvenient moment.

If something happens to a large financial investment like a property purchase, you can be seriously out of pocket and set back for a long time if you don’t have the right insurance in place.

What insurance do I get?

What if your new property were to burn down prior to the settlement date? Could you get out of the contract?

Could you be out of pocket for your deposit or even be liable for the full amount?


It’s a wise idea to organise insurance for your new property as soon as you sign the contract, before settlement even occurs.

In the event something does go wrong, you know that your interests will be fully protected.

Remember, the vendor’s insurance will not be paid out to you.

And in some states of Australia, the risk of damage to a property becomes the legal responsibility of the purchaser when the contract is signed.

Make sure you check if this applies in your state.

You can’t always rely on the vendor informing you if something has gone wrong in the period between when you signed the contract and when settlement occurs.

You could pick up the keys only to open the door and discover all the fixtures and fittings have been stolen!

You can easily organise a cover note with an insurer over the phone on the day you sign the contract, without having to pay a cent. Insurers will usually give you a good period of time before you have to start paying premiums.

If you don’t know what insurance company to go with, ask us for a referral.

What does my insurance need to cover?

Mortgage insurance

The insurance cover you require will depend on what you plan to do with the property you purchase.

At the outset, you may only need a cover note for the building until settlement, but after that you will require a fully comprehensive package.

If you’re planning on living in the property yourself, you will require Home Building insurance and it’s also a good idea to take out Home Contents insurance.

If you’re purchasing the property as an investment and are planning to rent it out, you should consider Landlord insurance.

Home Building insurance ….

typically protects the actual building itself.block building

Most policies cover for key events such as fire, storm, burglary and most types of water damage including flood. Some packages even cover you for falling objects like meteorites and air planes!

These policies usually cover all the buildings on your property including the garages and sheds.

Home Contents insurance typically protects your property inside the home.

It covers most kinds of events including burglary/theft, fire, flood and public liability.

You can often arrange optional extras like protection for your belongings when you take them outside your home too.

Landlord insurance…

is an insurance product that is specifically designed to assist property investors and make sure you will not be financially out of pocket if something goes wrong.

Typical packages for the building cover damage to your property by natural disaster, fire, theft, storm and flood.

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Frequently, you can extend cover to include protection against loss or damage caused by your tenants, including malicious damage and unpaid rent.

You can also get Landlord cover for contents and fixtures and fittings for apartments and units.

For more information about arranging the right insurance for your needs, make sure you talk with us today.

We can help you decide exactly what insurance cover you need and help get it organised – not just for this particular property purchase, but for a secure financial future too!


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Andrew Mirams


Andrew is a leading finance specialist who holds a Diploma of Financial Planning (Financial Services). With over 32 years of experience in finance, Andrew has been acknowledged by the mortgage industry with multiple awards. Visit IntuitiveFinance.Com.Au

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