Do we need to purchase home insurance? Once you have finished paying the mortgages off, there is no point in paying home insurance premiums. Is this a correct assessment of the situation? Definitely not. Once the mortgage is fully paid, you are not legally required by the bank to have home insurance. But, natural disasters as well as human made disasters can strike your home at any time in the future. Hence, cover against such home insurance damage is a must for every Australian home owner.

What types of damages are covered under home insurance? This can differ based on the terms and conditions of the insurance policy and the insurance company. Typically building insurance is known to cover for the structural damage of the home only. In case you need to protect the valuable things inside your home, then you need to get contents insurance. Alternatively, there is a type of insurance that covers both buildings and its contents. In any case, contents insurance is not going to cover everything inside your home. You must go through the terms and conditions of the insurance policy to understand the exact cover available for each type of home insurance damage, and the deductibles and excess you will need paid from your pocket.