In a nutshell, building insurance covers the cost of property or building damage.
Building insurance isn’t equivalent to the market value of your home, but the cost that it took from building it to the ground up. These costs cover the basic things that need repairing damaged structures, namely pillars, walls, roofs, fixtures and fittings—but there’s much more to it than just that.
Building insurance providers such as NRMA provide homeowners with security if any form of damage occurs in their home.
Listed below are 14 things that building insurance companies like the NRMA covers!
Has your house met a terrible, charred fate? Has a stray bushfire barged into your front door and left ashen remains in its wake?
If yes, you’d be pleased to know that building insurance offers you coverage for unfortunate cases such as these. Just don’t commit arson trying to claim it.
2. Theft and Vandalism
Has a thief or burglar ransacked your home and stolen your precious belongings?
Preventing that by locking your doors and having security measures in place would help. But if these intruders can’t take a hint and enter your homes anyway, building insurance will cover any losses.
3. Water and Oil Leaks
No one likes or expects a burst pipe. But it does and will happen if not inspected regularly. In case that day comes, your building insurance plan can give you coverage to prevent you from taking large losses.
4. Flooding and Storm Surge
Riverine flooding occurs in low-lying areas beside bodies of water like rivers and streams. If you live in flat inland regions of Australia, you’d be susceptible to the brunt of the flood that can last for weeks. In more coastal and mountainous areas, floods can happen more rapidly and unpredictably.
Building insurance covers the cost of the damages your home has met from the floodwaters. To stay up to date on rainfall information, get informed with the Australia Rainfall and River Conditions page maintained by the Bureau of Meteorology.
5. Rebuilding your home
If your home’s been damaged by an event that’s insured, then building insurance can also cover the repair and the fixes your home needs up to that amount.
6. Emergency repairs
Is your home in need of urgent repair? Building insurance plans may provide the option of 24/7 open communication lines to help provide for your needs.
7. Temporary accommodation
Is your home completely unlivable? Has it been devastated by the unpredictable forces of nature?
Building insurance covers forms of temporary accommodation up to the insured amount. This will help keep a roof above your head in case you’re strapped for cash and don’t have other options readily available to you.
8. Building materials
Are you renovating your home? Building material can cost you hundreds if not thousands of dollars.
Fortunately, building insurance covers the resources you’d need to give your home a brand new look up to the covered amount.
9. Broken glass
If you, your child, your pet, or an angry neighbour suddenly smashed a window or some ceramic to smithereens, building insurance also covers cases such as that.
Even though a house is a safe shelter against thunderstorms, one-third of lightning-related injuries can also happen indoors. Whether it’s you or your home that’s been affected by direct lightning or power surges, building insurance covers that.
11. Impact Damage
If a car has collided with your property and caused damage, then you can get covered with building insurance. The same coverage applies if a tree falls and damages your house too.
12. Liability for injury or damage
Building insurance also covers your legal liability in applicable situations, say when someone gets injured or if their property gets damaged at your home.
13. Demolishing & Removing Debris
Whether your home’s been ravaged by fire or flooded, and it can’t be salvaged with renovations, then building insurance can pay for demolishing and clearing out the lot.
14. Cover if renting out your house
If someone renting your home damages your property, then you can get coverage for this with your building insurance. Alternatively, you can also ask your insurance provider if they offer Landlord insurance for a more complete protection package.