Managing Director of Sure Insurance, Bradley Heath said if a householder has entered into a mortgage repayment freeze, it is critically important they continue to maintain an adequate level of home building insurance (sum insured) during the deferral period.
“Sure Insurance is reminding home-owners that home loan contract conditions require home insurance cover is in place for the duration of the loan term.
“If a householder has entered into a mortgage repayment freeze it’s essential an adequate level of home insurance cover is maintain during the deferral and entire loan period.”
“We know it’s extremely tough at the moment for many Queenslanders and some may be tempted to reduce their level of home cover or even cancel their home insurance to save money.”
“It would be a tragedy if an insurance cover lapsed and a total loss of the home occurred. The home owner would be financially responsible for the whole mortgage amount on a home that is either completely destroyed or damaged,” said Mr Heath.
The sum insured should include all costs associated with rebuilding the home to its previous standard and factor in demolition and removal costs, local council fees and current regional construction costs. Allowances for specific regional building standards and requirement should also be considered when calculating the sum insured.
“Sure also provides a range of home insurance excess options by allowing householders to increase their excess to lower their up-front premium.”
“For example, if a householder chose a $5,000 excess of their home insurance, they could immediately save $62.50 per month – an annual saving of $750 dollars.”
“Sure is open for business through this Coronavirus crisis and is ready to assist customers with questions about their home insurance, “ said Mr Heath.
Home Sum Insured Checklist:
- Note: Home loan contracts require home insurance cover is in place through the entire loan period, including any mortgage repayment deferral period.
- Ensure an adequate level of cover is in place to completely rebuild the home at current costs.
- Speak with your insurer if you have any questions about your current sum insured.
- Advise your mortgage provider if you are experiencing issues with arranging or maintaining home insurance cover.
Further information contact Mike Sopinski at Sure Insurance on 0421 052 598.