4 insurance tips for home buyers
Whether you’re looking to buy your first home or your third, house insurance plays an essential role.
Because most banks require you to have home insurance before your lending is approved, it’s important to get it sorted sooner rather than later.
Here are a few tips to help you get the right cover in place for your new home.
1. Get an idea of the numbers
Before you sign on the dotted line, it’s good to know exactly how much you’ll need to pay to insure the property you’ve got your eye on. Even if you just get an idea of what is likely to affect your premiums, such as how old the home is or whether it has a swimming pool, this will give you a better gauge of how much you’ll be paying on top of your mortgage. An insurance adviser can help you put some calculations together so you can get it right from the get-go.
2. Check out the history of the property
The size, age and condition of the property, as well as what it’s made from and any amenities it has, will have an effect on your insurance and how much it will cost. If you can, it’s a good idea to find out what kind of insurance the house currently has, and whether there are any special conditions or considerations that may be in place.
3. Make sure the cover is right for you
In New Zealand, house insurance is usually based on a ‘sum insured’ amount, so you’ll need to make sure you have this number correct. The sum insured is the amount that you specify to be paid out if your home is damaged - you can find out more about sum insured in our helpful article, ‘What is sum insured and how does it work?’ If your sum insured is too high, you’ll be paying more for what you don’t actually need, and if it’s too low, you might not have enough cover.
4. Keep your cover up to date
It’s important to review your house insurance regularly so you always have the cover you need should the worst happen. If you’ve done some home improvements or renovations, you might need to update the sum insured amount on your policy. You may also need to speak to your insurance provider to check you’re still covered – this is because recreational features such as swimming pools might not be included in your policy and may require you to purchase additional cover.
Want to have a chat about insurance for your new home?