Recent research shows that up to 80% of homes in Australia are under insured. For most people your home is the largest asset you have.

Remember the value of the house does not include the value of the land – do not make the mistake of insuring your home for the price you purchased it for.

When you exchange Contracts you are agreeing to complete the purchase. If the house falls down between exchange and completion you will be purchasing a pile of rubble on the land, therefore you need home insurance from the point of exchange.

You will need to insure the premises as it is a condition of your current mortgage until that mortgage is redeemed on completion. You will also need to have insurance over your contents.

The Vendors will also keep the property insured until settlement has occurred. The net effect is that properties can be insured by 2 different sets of people, but then they both have insurable interests in the property.