Insurance for First Home Buyers
What is Insurance?
Insurance is designed to help protect you from financial loss if things go wrong.
As a First Home Buyer it is important to know that when you purchase a new residential property it is a condition of your home loan that you have insurance on the building. At Credit Union SA we can help, because we can arrange Allianz Home Insurance for our members. Plus, if you buy a new 12 month Allianz home insurance policy (with buildings cover) through us you will receive up to 90 Days’ Free Buildings Cover1 during your property’s settlement period!
There are generally two forms of home and contents insurance. One provides cover for a specific list of insured events and the other is a more comprehensive policy providing accidental damage cover. Credit Union SA offers both of these.
Classic Home Insurance covers a range of insured events, such as fire, water damage, lightning, and theft, just to name a few.
Prestige Home Insurance covers you for accidental damage, which includes all the same insured events plus accidental damage such as spilling a bottle of wine on your carpet or accidentally putting your foot through the ceiling when rummaging in the attic.
Importantly, both types of cover include a Legal Liability benefit. This means if you’re found liable for injury to other people or damage to their property you may be able to make a claim for up to $20,000,000. For example, if your dog was on the street and bit a passer-by and they sued you for medical expenses, you could be covered for it and any associated legal costs up to the policy limit.
What is an excess?
An excess is the amount you have to pay if you make a claim on your insurance policy.
Here is an example - Your home is damaged in a storm, and the cost to repair the damage is $5,000. If you have an excess of $600 on your policy then you would pay the first $600 to repair the damage, and your insurer pays the remaining $4,400.
For building and contents insurance with Allianz you have the option to increase your excess, as a way to reduce your insurance premium, because your insurer won’t have to pay out as much money in the event of a claim.2,3
Contents insurance covers you for loss or damage to your personal possessions. It is most common for home owners to take out a home insurance policy which covers both their buildings and contents, but these covers can be bought separately.
As well as the obvious things like clothes and appliances, 'contents' also includes things like curtains, carpets, blinds, and loose floor coverings.
It’s important to understand that contents insurance usually covers you for damage to your contents whilst they’re at your home address (although there may also be limited cover away from home under some circumstances). For extra peace of mind, Allianz offers the option of Personal Effects Cover – which covers accidental loss of or damage to portable valuables you routinely take with you when you leave the house – things like an engagement ring, laptop or mobile phone4.
What is buildings insurance?
Buildings insurance covers you for the cost of damage to the structure of your residential property. This ordinarily includes permanent fixtures to your house, such as the roof, walls, ceiling, floors, windows, and doors. Outdoor structures on your property, like your garage, fence, shed, and in-ground pool are also ordinarily covered under your buildings insurance.
Flood cover is an optional extra on Allianz Classic Home Insurance and Prestige Home Insurance (subject to eligibility), and covers you for loss or damage arising from water escaping or being released from the normal confines of any natural watercourse, lake, river, creek, reservoir, canal or dam.
If you decide to make your first home purchase an investment property, Landlord Insurance is a great way to protect your building and any contents you supply for the tenants’ use. Allianz Landlord Insurance provides cover for insured events such as fire, theft and storm. It also includes cover for malicious damage by tenants. Better still, if you buy a new 12 month Allianz landlord insurance policy (with buildings cover) through Credit Union SA you will receive up to 90 Days’ Free Buildings Cover during your property’s settlement period.1
Allianz Landlord Insurance also offers optional cover for Rent Default and Theft by Tenant. This means you could be covered up to the policy limits if your tenant defaults on rent payments, leaves without notice, or steals your property.
Mortgage Repayment Insurance is designed to help with your loan repayments up to the policy limits if you die or if you are involuntarily unemployed or unable to work due to injury or illness.
1The offer of free buildings cover may only be used in conjunction with the purchase of a residential home or residential investment property and the purchase of a twelve (12) month Home Insurance or Landlords Policy for that property which includes buildings cover. It is not available to land-only ownership or Strata Title properties. This insurance is subject to normal underwriting terms and is offered subject to your eligibility for home or landlord insurance with the insurer. You must consider whether you need insurance for your settlement period as this varies from state to state and may depend on the terms of your contract for sale of property. Please seek independent advice to ensure that you are adequately covered at the appropriate time. By purchasing a twelve (12) month home or landlord insurance policy (including buildings cover), your policy will include an additional free cover period for your building(s) of up to a maximum of 90 days before the start date of your twelve month policy. The free cover period effective date and expiry date will be shown in your policy schedule. The expiry date will be the settlement date nominated by you, which cannot exceed the ninetieth (90th) day from the start of the free cover period. The twelve (12) month period of insurance under your home or landlord insurance policy will commence immediately following the expiry of the free cover period. Once the policy is purchased, the expiry date of your free buildings cover and the commencement date of your twelve (12) month insurance policy cannot be changed unless agreed to by the insurer in writing. The terms, conditions, limits and exclusions in your home or landlord insurance policy (which are set out in the Product Disclosure Statement and policy schedule) will apply to the free cover period. These include, but are not limited to, ’Buildings not lived in for more than 60 days’, ‘taking precautions’ and ‘security devices and burglar alarms.’ The optional additional cover ‘Rent Default and Theft by Tenant’ if selected in the landlord insurance policy, does not apply during the free cover period.
2 Minimum premiums may apply. Any discounts/entitlements may be subject to rounding and only apply to the extent any minimum premium is not reached. If you are eligible for more than one, we also apply each of them in a predetermined order to the premium (excluding taxes and government charges) as reduced by any prior applied discounts/entitlements. Discounts may not be applied to any flood component of the premium (if applicable).
3 Not applicable when an imposed excess applies.
4 Damage to glass (other than lenses) or other brittle or fragile substances (other than jewellery) will not be covered unless caused by fire or theft.
Credit Union SA Ltd ABN 36 087 651 232, AFSL/Australian Credit Licence Number 241066, arranges this insurance as agent of the insurer Allianz Australia Insurance Limited (“Allianz”) ABN 15 000 122 850 AFSL 234708. Allianz is the insurer of the Disability cover and Involuntary Unemployment cover and is only responsible for these covers. Allianz Australia Life Insurance Limited (“Allianz Life”) ABN 27 076 033 782 AFSL 296559 is the insurer of the Death and Terminal Illness cover and is only responsible for this cover. Allianz acts as Allianz Life’s agent in offering and administering the Death and Terminal Illness cover.
We do not provide advice on this insurance based on any consideration of your objectives, financial position or need. Policy terms, conditions, limits, exclusion, eligibility criteria and underwriting criteria apply. Before making a decision please consider the relevant Product Disclosure Statement available on our website. If you purchase this insurance, we receive a commission that is a percentage of the premium. Ask us for more details before we provide you with services.