Home and Contents Insurance Advice for First Homeowner

Pepperchicken on 27/08/2024 - 22:23
Last edited 28/08/2024 - 11:26 by 1 other user

Hi All,

I am settling on my first home soon and I am looking into homes and content insurance for the first time, and I have a few questions for the community :

  1. Using the estimation tool to rebuild the house, how much additional buffer do you add?

  2. Do you include your luxury items (Watches/bags/jewellery) in the contents insurance? If so, how do you value it? Is it by current estimated market price or at RRP value? Noting depreciation etc.

  3. There will be no mortgage. Should I start my insurance right away or on the day of settlement?

  4. I notice quotes asking if there are security cameras; I plan to install them after moving in, should I just tick yes?

  5. Has anyone combined Home & Contents with their car insurance? Did you find it cheaper than doing Home & Contents and cars separately? I am currently signed up for a comprehensive car insurance, and am thinking of combining if it provides more discount.

Any tips/advice/things you wished you knew before, please share!

Thanks!

Home & Garden Home Insurance Insurance

Comments

  • Benoffie on 27/08/2024 - 22:34
    +4

    If in settlement, you need the insurance asap. Get something as you can adjust it later.

    Ballpark for mid level rebuild is $2500-3500/sqm. Demo is $30-40k, planning etc another $10-20k depending on location. Realisticly, nothing below $400k. $500k is ok, $600k is not bad.

    Contents - everything is 'what would it cost me to go to HN to buy off the shelf right now?' Price.

    Listed items are only stupid things that are high value, really rare or parts of sets/collections. A collection is 'if one piece was missing, would the value drop?'

    Jewellery doesn't matter unless it's antique or has a valuation. They will want those details.

    It includes anything that would fall out of your house uf you turned it upside down including all furnishings such as carpets and curtains.

    Realisticly, this must have a 1xx in front, usually a 2xx for a family home

    As for combo, it depends. We do with RAA but our biggest discount is off loyalty bonus. Just need to ask what it gets you.

  • sumyungguy on 27/08/2024 - 22:36

    For point 1, I'm with Qantas who offers optional Sum Insured Safeguard which increases the amount they'll pay by up to an additional 25% of the sum insured stated on the Insurance Certificate.

  • Wiadro on 27/08/2024 - 22:38
    -2

    house 800k
    contents 400k

    • brifog on 28/08/2024 - 07:43
      +3

      400k contents is crazy

  • JIMB0 on 27/08/2024 - 23:51

    The vendor carries the risk until settlement. They're contractually obligated to deliver the house in the same condition as when the contract was signed. That being said there's nothing stopping you from getting insurance and it's often recommend to avoid any potential issues if the vendors insurance is lacking.

    • bazingaa on 28/08/2024 - 05:00

      The vendor carries the risk until settlement

      I think it is different in QLD, but in VIC this is true, we had to get insurance from the settlement date and it was a rental before then

    • Gunnar on 28/08/2024 - 06:15

      Depends on the state. In SA it’s get insurance from the day you sign the contract

      NSW and Vic have it that you need your insurance from day of settlement (which makes more sense to me)

  • Ozbar Gain on 28/08/2024 - 00:07

    Different states have different laws about who needs insurance before settlement

    • onceupon8 on 28/08/2024 - 07:13

      Yes, be very careful about when you need to start the insurance based on which state you are in, as each state is different. Ask your conveyancer or read articles carefully from trusted sources.

  • altomic on 28/08/2024 - 08:52
    +2

    i used a rebuild calculator from one home insurance website. and it said the cost to rebuild my house would be the same cost as what realestate.com values my property - i.e. $1.2 million.

    wtf?

  • apple2016 on 28/08/2024 - 10:58

    Should I start my insurance right away or on the day of settlement?

    Even start before that. Also go with a reputable insurer.
    The reason to get insurance early is , if something goes wrong (theft , vandalism etc), you have the insurance company at your side fighting for you as opposed to you vs the seller.

  • bmxr on 28/08/2024 - 11:48
    1. $600k home
    2. $125k contents at cost to replace. For instance one of the rings has doubled in value since purchase so we increase this annually. Be careful and check the policy for contents that you take outside of the home and their coverage. E.g. if you damage or lose a ring/musical instrument/other valuable outside of the house, it may not be covered.
    3. Day of settlement
    4. As long as they are installed and operating the day the policy is in place.
    5. Shop around. We found a cheaper option with different insurers for home, care and health.
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