Becoming a home owner is a major life achievement, and it’s also one of the most expensive purchases you’ll make. That’s why it’s important to have adequate home insurance in place so your asset is covered as soon as you own it. Although it’s not a legal requirement, some lenders may require you to have home insurance as a condition of your mortgage.
But don’t leave this step to the last minute. As soon as you take ownership of the property, you’re financially liable for any loss or damage that occurs to it. In NSW, VIC, WA and NT, your responsibility begins on settlement, whereas in QLD, TAS, SA and ACT, you may need to have insurance in place as soon as you exchange contracts.
There are two main types of home insurance – building insurance and contents insurance.