Key things to know about home insurance for first time home buyers

When buying homeowner’s insurance for the first time, you may be confused about what information your insurer needs. You may need to get your home thoroughly inspected when applying for home insurance, which can help you understand what your home insurance policy would need to cover to protect your home and belongings from unexpected events.

Consider taking a good look at your property and inside your home to gauge what features and items would be expensive to repair or replace. For instance, you may have solar panels installed on your roof, or you may have splurged on high-quality fencing for your home. Similarly, you might own a high-end home theatre system, or even an art collection. Your insurance policy should adequately cover the cost of repairing or repurchasing such items.

A home insurance policy will usually cover your home’s fixed structure, but if you want to get insurance for your belongings as well, you may want to consider a home and contents insurance policy. You may need to purchase additional coverage and sometimes even a separate insurance policy for your high-value items.

Preparing a list of all the objects you want to include in your insurance policy can be an excellent place to start thinking about the policy’s coverage, and can be useful when discussing coverage limits with the insurance provider.

You may have purchased your first home in a location that’s ideal for your needs – close to your workplace or schools, a safe local community, etc. But you may not have factored in the possibility of disasters or vandalism, which can be a concern when buying home insurance for the first time.

For instance, if your home has a high Bushfire Attack Level (BAL) rating or is an area prone to theft, coverage for those incidents can prove expensive and may require you to pay more for home insurance.

Your insurer may also require you to make some refurbishments to your home as a precaution, such as adding fireproofing if your area is likely to be affected by bushfires, or termite protection if you are near a wooded area.

Consider visiting the local council office for the area where you are buying your first home, to get information around any adverse conditions you might have to face. Consider asking your neighbours which insurers they recommend.

If you’re buying an insurance policy to fulfil your home loan requirements, the mortgage lender may also be able to suggest an insurance provider familiar with the area. You may also want to compare home insurance quotes online to check if there are providers other than those recommended who might offer you a more convenient home insurance rate.