Building insurance covers much more than what you may have previously thought.
The benefits you gain from getting a complete and comprehensive NRMA building insurance plan can save you thousands of dollars once an emergency strikes.
But with only around one-quarter of Australian renters insuring their home’s contents, the benefits that building insurance offers seems more like an open secret than anything to the general public. If you’ve gone out of your way to read more about building insurance, you’re already doing much better than the crowd in terms of prioritising your protection and security.
Let’s look at all the things that building insurance actually covers — including all the tiny bits and pieces.
What is Building Insurance?
If you’ve never purchased building insurance before, it can be confusing wrapping your head around the topic. Building insurance is an insurance plan that covers the cost of repairing structural or unforeseen damage caused by forces of nature, theft, or accidents.
It can also cover the vicinity of your home, such as your lawn or driveways. Getting your building insured is advisable, especially if you’re moving to a brand-new home out of your city.
What Does Building Insurance Cover?
Look through 14 surprising things that you may not know a building insurance coverage plan could actually cover.
1. Broken Glass
Did the window in your living room, child’s bedroom, or guest room shatter by accident? While you worry about ensuring no stray shards settle in your carpeting, a good building insurance plan can take care of the cost of repairs. This plan provides coverage for broken glass as well as broken ceramic from permanent fixtures.
2. Water and Oil Leaks
Have a burst pipe ruining your day? How about oil leaks leaving a mess in your tiles and flooring? Building insurance can cover most cases of these leaks. Some coverage doesn’t account for specific scenarios however, such as water leaking from a shower base or earthquakes destroying the pipe structure.
3. Flooding and Storm Surges
Flooding is rampant in all parts of Australia. This makes building insurance essential to cover the cost of these unpredictable forces of nature. Plans can cover the cost of damages that could exceed up to thousands of dollars in damages.
The Australia Rainfall and River Conditions page maintained by the Bureau of Meteorology gives you an accurate report of when to expect flooding across the different regions of Australia. Building insurance does not, however, cover for natural actions of the sea such as waves and tides.
4. Theft and Vandalism
Has someone invaded your property? Have they stolen treasured possessions, such as family heirlooms, expensive gadgets, and the like?
While grandpa’s old watch may have priceless sentimental value, you can try to recoup the cost with the right building insurance plan. This will cover close to or equal the value of the stolen goods. The same thing applies if the walls at the outside of your house are plastered with graffiti too—simply contact your insurance provider and they’ll recover the cost of returning it back to shape.
5. Temporary Accommodation
Building insurance doesn’t just cover your house, it also provides you with some security of having your own place to settle in too. In case your house is deemed unlivable, you may avail of a temporary arrangement that’ll give you a roof over your head for up to one year. The cost must be agreed upon by both the insurer and the affected party before a contract is settled.
6. Fire
What’s worse than finding yourself in a position with your house burned down? – An uninsured house burning down.
Fire is a common occurrence in many parts of Australia. Nearly up to 50% of the territory in Northern Australia faces the destruction of wildfire once every three years. If you live in a fire-susceptible area, building insurance will be your saving grace to ensure that the blood, sweat, and tears you poured into your house would be gone in a snap — just like that.
7. Emergency Repairs
If your home needs urgent repairs due to forces of nature, accidents, or other events, building insurance companies are made to extend a helping hand during these tight moments.
8. Lightning
The chances of getting struck by lightning are relatively slim. But did you know that surveys have shown that one-third of lightning injuries occur inside a manmade structure?
Building insurance covers the damages that your home may be left with after a particularly devastating situation. If you live in an area that’s prone to thunderstorms, you may want to consider getting a building insurance plan to save you the cost of repairs from these natural events.
9. Home rebuilding coverage
Has your home been destroyed by some natural disaster? While the answer is obvious now, months or years are time frames that can change our life situation dramatically.
It’s not uncommon to face home destruction. Earthquakes, floods, and bushfires can be waiting around every corner – waiting for the opportunity to strike. To get ready for their inevitable rampage to befall your home, building insurance can be a good form of protection with their home rebuilding coverage to ensure you won’t go homeless and broke.
10. Materials for Reconstruction
If you plan on renovating your home due to an unforeseen event, building insurance covers the cost of material and resources. This is as long as the event is agreed upon and covered by the insurance plan beforehand.
11. Renting Out Coverage
While Landlord insurance may be more comprehensive and is recommended for most cases, building insurance also provides you protection in case your home suffers damage by the fault of your tenants.
12. Demolishing and Debris Removal
If your home meets a particularly unsalvageable demise, building insurance can give you some coverage. This coverage helps with removing the pieces of debris laying around your property, as well as any acts of demolishing for still-standing structures.
13. Liability for injury within home
Did somebody suffer a nasty accident in your home? Has someone’s valuable property broken within your premises?
If these cases happen, you can get liability coverage to recover the cost of the medical bills or the market price of the item.
14. Impact Damage
If a drunk driver or a loose tree smashes through your house, building insurance will cover the cost of the damages. However, most building insurance plans do not cover the cost of damage to plants, trees, and shrubs.
