There are many wonderful benefits to home ownership, including a sense of safety and security for your family and the ability to build wealth over time as your property value increases. Alongside this, there are also a range of important obligations which you need to meet to ensure that you reap these benefits.
First and foremost is ensuring that you take out an appropriate level of home insurance to cover a range of events including fire, theft, lightning, earthquake, storm, rainwater or wind damage.
If you have a mortgage, maintaining an appropriate level of home insurance is also essential to meeting your obligations under your home loan terms and conditions (your contract). If you don’t have adequate coverage you may be in breach of your contract. As part of this, your mortgage provider may request at any point in time evidence of your home insurance (known as Certificate of Currency).
UPDATE: Bank of us has recently removed the requirement for home loan customers to present a Certificate of Currency on an annual basis. It’s important to note though that adequate home insurance must be maintained and we may request evidence of this at any point in time.
If you are unsure as to how much to insure your home for, check out our handy online Building Calculator. We are also able to offer you a range of great value insurance products through our partner, CGU. Call 1300 306 716 for a no-obligation quotation on your insurance needs or check out our website for further details.