Buyers fail to consider household insurance cover & premium costs for real estate purchases

Nov 8

Regional Queensland household insurance specialist, Sure Insurance today released research* that showed many first home buyers had not factored in the cost of insurance cover when purchasing residential real estate.   

The research revealed only two-fifths (38.8 percent) of first home buyers across Regional, North and Far North Queensland who had obtained a Household Insurance premium quote from Sure had considered the cost of insuring their home before buying.

The Sure Insurance analysis also showed less than one-third (32.5 percent) of other Regional Queensland home buyers had considered the cost of household insurance before buying property.      

Managing Director of Sure Insurance, Bradley Heath said given current cost-of-living pressures, concerns around the affordability of home insurance, and the threat of another potentially severe La Nina, it’s alarming buyers were failing to completely understand the cost of insurance in advance of acquiring a home.  

“We recommend home buyers and especially first home buyers on tight budgets seek a quote on the cost of household insurance cover before moving forward with a property purchase,” said Mr Heath.

“Being fully aware of the cost of household insurance not only equips prospective buyers with critical information on the property to potentially enable more effective negotiation on price but, also exactly what the cost will be to fully protect the home with adequate insurance cover.”     

“Those currently looking to buy a property are urged to check the contract of sale for details on the household insurance responsibilities, and are reminded home loan contracts require building insurance cover to be in place through the entire term of the loan,” said Mr Heath.

Further information contact Mike Sopinski on 0421 052 598.

*Sure Insurance research: Analysis of Sure Insurance Household Insurance premium quotes: Sample group: April 2022 – September 2022: (North, Far North, Central Queensland & Wide Bay regions)