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What do you need to know about insurance for your Surfers Paradise property?

By Andrew Bell

Buying real estate in Surfers Paradise is one thing, while maintaining it is another entirely. The upkeep associated with owning real estate is incredibly important, especially if you've purchased an investment property which will be lived in by other tenants. Even if you simply have purchased something for your family to use, wear and tear will still occur. One of the most important parts of securing your future in property is getting it properly insured. 

According to figures from the Australian Prudential Regulatory Authority (APRA), the insurance industry made $31.8billion in the year to the end of March 2015 – a 2.4 per cent increase on the year before. There was also $31.2billion claimed by Australians, which was an annual increase of a whopping 21.8 per cent. Clearly, the insurance industry is developing in leaps and bounds – but what do you need to know about it when you buy Surfers Paradise property? 

Choose the right type 

You will generally get home and contents insurance covered in one package from your provider, but there are two main categories of home cover that you should be aware of: Total replacement and sum-insured.

With the former, you will be covered for the entire cost of of rebuilding a home in the event of damage or destruction, while the latter gives you security for a previously set out amount. While there are many divergences from these two base kinds of insurance, this is the general split to be aware of when buying Main Beach real estate. Sum-insured deals are more typical, according to the Australia Securities and Investments Commission (ASIC).

Shop around until you're sure

Another important piece of advice from ASIC is to try out different potential insurance policies. Many businesses provide online calculators, and ASIC recommends trying out at least three of these to compare and contrast. You'll get a fair idea of how much you can be covered for, and how much it will cost – as well as who will provide you with a good deal. 

A calculator or other estimation device that asks you a lot of detailed questions is more likely to give you an accurate summary of what you could get. 

Consider the long term costs

It's unlikely that your home will be struck down by flood, lightning or another natural disaster but it's always better to be safe than sorry. That's why, when you seek out insurance, you need to factor in more than just the cost of rebuilding your home.

Displacement costs can also be significant. These can include finding accommodation for you and your loved ones during reconstruction, safety procedures and the red tape involved with rebuilding. By factoring these into your insurance plans, you won't just have recovery planned out – you'll have your own wellbeing during this time organised as well. 

Stay safe and secure

As is the case in many situations, prevention is often the best cure – and this applies to home and contents insurance as well. By making certain that your Surfers Paradise property is under lock and key, you can minimise the risk of theft, and therefore the need to make a claim. 

The Insurance Council of Australia recommends double locking doors, locks on windows, monitored alarms and sensible storage of keys and swipe cards to keep up security on your property. It is a little more effort in the short term to avert tragedy in the long term.

When you decide it's time to branch out and buy Surfers Paradise property, make sure to get in touch with us at Ray White. We have a wide knowledge set that can find you the right property and put the keys in your hand. 

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