Buying a home comes with a long list of things to think about.

There’s finance to arrange, a LIM to read, perhaps a building report to organise, conditions to work through and plenty of discussion about whether the property is actually right for you.

Insurance can sometimes end up much further down that list than it should.

It’s easy to assume that once you’ve found the house, arranging insurance will be relatively straightforward. Often it is. But not every property will be viewed in the same way by an insurer, and it’s worth understanding that before you commit.

 

 

The address can matter more than you might think

 

Insurers today have access to increasingly detailed information about natural-hazard risk.

That can include things such as flooding, landslips, coastal hazards and other location-specific factors. The information available about individual properties and surrounding areas is also much better than it once was.

That doesn’t mean a home identified as having some level of natural-hazard risk can’t be insured.

But depending on the property and the insurer, it could affect the information they want, the terms offered, the premium, the excess, or the options available.

Two homes that look quite similar on paper may not necessarily present the same risk from an insurance point of view.

That’s why it makes sense to include insurance in your due diligence, rather than assuming it can simply be sorted once everything else is agreed.

 

 

Look at the history as well as the house

 

A LIM and building report can tell you a lot about a property, but it’s also worth understanding whether there has been previous natural-hazard damage or an insurance claim.

A previous claim doesn’t automatically mean there’s a problem.

What matters is understanding what happened, what repairs were completed and whether there is anything an insurer may need to know when considering cover for the property.

If you’re buying a home, there are a few useful questions to ask along the way. Has the property suffered flood, earthquake or other natural-hazard damage? Were repairs completed? Is there documentation available? Is there anything disclosed on the LIM or title that warrants further investigation?

The aim isn’t to find reasons not to buy a property. It’s simply to know what you’re buying.

 

 

Don’t assume every house will be treated the same

 

The property itself matters too.

Construction type, age, renovations, additions and how the home is used can all be relevant when arranging insurance.

An older home may raise different questions from a newer build. Unconsented alterations or unusual construction may require more information. A property that is going to be rented, renovated or left unoccupied for a period may also need to be considered differently.

None of that means you need to become an insurance expert before making an offer.

It does mean it’s helpful to talk to your broker early enough that there is time to work through any questions.

 

 

Before you go unconditional

 

Ideally, you want to know that the insurance you need is available before you’re fully committed to buying the property.

That means understanding whether there is anything about the home, its history or its location that an insurer needs to consider, and whether the cover available is something you’re comfortable with.

It’s much easier to work through those questions while you’re still doing your other checks than when settlement is approaching and the pressure is on.

Your lawyer, lender, building inspector and other advisers all have their own role in the purchase process. Your insurance broker is another useful person to involve early.

At Dawson’s, we can help you work through the insurance side, including what information insurers are likely to need and what cover and terms are available.

Buying a home is a big decision. Insurance doesn’t need to make it more complicated, but it does deserve a place in the conversation before settlement