Do I need Insurance?
On our website, we talk a lot about the importance of having plans. While it is good to plan ahead, unfortunately things do not always go to plan. Life can throw unexpected obstacles your way. However, there are ways you can protect yourself from some of the unexpected events that life can throw at you:
- Security systems – help you reduce the chance of unexpected loss occurring
- Insurance – help you manage the impact / loss as a result of an unexpected event
You should ask yourself questions like:
- What would I do if someone stole my household contents? Could I afford to replace them?
- Could I afford to continue to pay the mortgage if my partner or I lost our employment?
- If my house flooded, could I afford the repayments and repairs?
Insurance is a tool whereby you pay a premium to your insurance provider and in return you have a policy whereby if a certain unexpected event occurs, you can receive a payout to help you with the financial costs related to the unexpected event. Insurance helps you manage risk.
First home buyers often do not know what insurance cover to get for their first time. The next section focuses on typical insurance home owners usually obtain. For advice on what insurance cover you need, you should consider speaking to an insurance broker or Financial Planner.
Stay tuned for our series of first home buyer protection tips.