In Australia, the first thing people often do when they buy a new house is to buy insurance. Even in Australia, there have been natural disasters such as forest fires and floods. What, then, can be done to minimize the damage caused by disasters? And what kind of insurance is necessary to buy, and which insurance is bought according to the individual's will?
There are four more common types of housing insurance in Australia: housing insurance, housing property insurance, public liability insurance and landlord insurance. Generally, houses that lend to banks are forced to purchase housing insurance, and housing property insurance, landlord insurance and other voluntary purchase; according to different insurance companies have different insurance schemes, fees are different.
Some terms relating to insurance:
- Premium: is the insurance fee. Generally annual fee or installment monthly payment, in most cases will be slightly more expensive;
- Excess fee: just exceeds the cost. In fact, every time the insurance company to compensate for the need for the insured to pay their own money. So the higher the excess fee, the cheaper the premium;
- Sum insured: is the value of insurance. Many people keep a little less value in order to get the premium cheap. In fact, some policy found low insurance can not pay a dime, so we should choose according to their own situation. It is worth mentioning that this insurance value can be review, at any time, for example, you have built a shed or something, then the total insured value should also be increased accordingly. The insured value should be taken into account for all re-built reasonable costs, such as materials, labor, design fees, etc.
- Discount: is a discount. The usual discount is that: Package holder, gives you a 10% discount because it has a mortgage in the bank.
- No claim discount, is a discount that has never occurred or claimed compensation;
- Multi-policy discount, usually gives you discounts if you have multiple insurance policies for companies that specialize in insurance.
Housing insurance Building Insurance
Housing insurance premium is mainly to protect the event of force majeure and cause damage to the structure of the house and buy insurance. It mainly covers the structure-related parts of the house, which can be covered by structural damage caused by non-owner factors. Natural disasters, such as fire, flood, wind and so on, as well as the damage caused by traffic accidents, can be compensated through this insurance. Different insurance companies have different insurance products and corresponding costs.
Insurance premiums are paid annually. As a loan to the bank property, the bank mandatory purchase of housing insurance. In most cases, housing insurance is $300 per year, which varies greatly depending on the structure and value of the property. For example, $350000 worth of brick-and-wood single-story villa houses are insured at about $300 per year.
In one case, a client bought a piece of property with three houses that had to be repaired because of the age of construction, at a time when the estimated cost of repairs was about A $ one hundred thousand each. But before the reconstruction began, there was a fire and all burned down. Since the client had previously purchased construction insurance for the property, the insurance company paid A $ one hundred thousand for each house for a total of A $ three hundred thousand, so the fire did not cause any property damage. Instead, he made some more money from it. But the good luck is also due to the timely purchase of construction insurance.
It can be seen that the purchase of construction insurance is necessary, especially from home buyers to establish this awareness. If you want to further protect your own indoor property as a self-housing, it is recommended that you also purchase and house property insurance.
Housing property insurance Home Content Insurance
It is important to note that valuables, such as jewelry, can only be compensated if they are stated at the time of insurance. In fact, housing and property insurance for landlords and tenants are very painstaking, because the loss of benefits caused by non-tenants do not need to be borne by the tenant. At the same time, the rental of insured real estate, housing can be more comfortable. The general (Comprehensive) term commonly used in insurance contracts does not mean that all risks are borne. The simplest is the glass of doors and windows and the car in the garage is usually not covered by insurance.
Public liability insurance Public Liability Insurance
Landlord insurance, Landlord insurance.
You can rely on this insurance if the tenant owes the rent, the tenant damages the property, the tenant breaks the contract, etc. Although these situations are rare in the Australian rental process, they can be considered if you want to guard against them.
For tenants, if the house is subject to unusual changes by non-tenants, tenants do not have to bear any responsibility. The loss of the house caused by abnormal changes will be borne by the insurance company.
During rental, the tenant's personal belongings, such as furniture, jewelry, clothing, etc., are not usually covered by the landlord's housing insurance. But tenants can negotiate with the landlord for personal property insurance.
Other consideration
Certain risks, such as war, natural wear, and damage caused by intentional or improper use by insurers or family members, are not compensable. So you have to go to the insurance company to deal with these claims, so that your life will be well protected.
Housing insurance contracts usually include the owner's private "negligence insurance", which must be taken into account when signing a rental agreement (lease), otherwise the hindsight of hindsight will not be good.
To prevent house theft, tenants can install "burglar alarm" in the house, which can reduce the possibility of house theft. In the event of the house being stolen, the company responsible for installing the "burglar alarm" will be responsible for paying you the appropriate compensation, but not all compensation for the damage, and this part of the compensation will only be paid to you by the company. The compensations you can get will be the items you insure with the insurance company.
