Real Estate Property and Building Insurance

Not many people like paying insurance but it's important to recognise that from the second you purchase a property, that you immediately have an insurable interest in that piece of real estate.

Many a traumatic experience has been had prior to settlement by the purchaser, whose house of purchase has suffered a storm torn tree through the roof or a burnt out kitchen. While it is the responsibility of the Vendor to provide the property in the same condition as at the time of purchase. If there is no insurance policy in place the question of where the money will come from might not be answered!

The important message here is:

"Do not assume or take anyones word, that the owner you are buying from has a current and maintained insurance policy on the property."

Once you have entered a contract to purchase a property you should get the appropriate insurance for it!

This is not the opinion of an insurance expert of any sort, the advice is based on the experiences of a real estate agent.

Here are some points to note when obtaining quotes for insurance of your property:

Building Size

Know the difference between an Imperial Square which is 100 square feet. A 1000 square feet is commonly referred to as 10 squares when quoting house sizes. These days you should also know the equivalent size in square metres.

Note: 10 Squares = 93 square metres and 100 square metres = 10.764 Squares.

Fitting, Fixtures and Appliances

Take Note of the quality and type of floor coverings, window furnishings, security systems, dishwasher, heating and cooling units. Kitchen appliances can vary significantly in price between high and low quality. You need to make sure the policy is covering for brand new replacement and repair costs.