July 20, 2024


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The Benefits of Having Insurance For Your First Home Purchase

Buying a home is probably the most expensive purchase one could make in a lifetime. Hence, it only makes sense to seek protection for your investment in case of unfortunate circumstances. Whether you’re a new homeowner or in the housing market searching for one, home insurance is an umbrella that is crucial for protecting your investment.

There are several types of insurance that homeowners should consider- building insurance, content insurance, and gazundering insurance. A homeowner can choose one of these policies or combine both in a single policy. To save some money on home insurance costs, it is a good and cost-effective idea to opt for a single policy from one insurance provider.

Building insurance covers structural damages to the property including the floors, walls, fitted bathroom, and kitchen. While content insurance covers the content of your home- things you take when moving such as furniture, clothes, and appliances. These policies can cover you in circumstances such as damages, flooding, storms, fire, falling trees, subsidence, pipe leak, and theft.

So, what is gazundering?  Also known as price chipping, gazundering is when a buyer reduces their original offer for a property just before contracts are exchanged. That’s where gazundering insurance comes in! This policy helps protect the seller and allows the seller to claim back conveyancing fees.

If you are still unsure how an insurance policy actually benefits you, continue reading.

Here are the top benefits of having insurance for your first home purchase.


The Benefits of Having Insurance For Your First Home Purchase

Sense of security: Home insurance gives homeowners a sense of security in the case of catastrophic events beyond the homeowner’s control that could result in a significant loss. Peace of mind on a daily basis is crucial when making such an investment.

Extensive protection: By insuring your home, not only can you protect its structure but you can also ensure the extensive parts of your property such as the shed, garage, and patio. Just as we mentioned earlier, most insurance companies provide add-on policies that you can opt for to protect the content of your home. Depending on the policy you choose, you may get a replacement or be reimbursed.

Reduced financial strain: If your home or the content in it gets damaged, it could cause a significant dent in your finances. This means you need to pay for unplanned and unexpected repair expenses. Without an insurance policy in place, the homeowner might need to take out a loan or credit card. However, a home insurance policy will help cover these costs and save the homeowner from any financial burden.

Affordable: Home insurance is affordable and made on a monthly basis. This could be as low as $15 a month or even less.

Mortgage approval: Mortgage providers require building insurance before exchanging contracts during the purchase of a property. The property is the loaner’s security on the loan, so it’s reasonable that they expect the property to remain in good condition and be insured against any damage to protect their assets.