Buying a home is the investment of a lifetime. It goes without saying that securing insurance should be a top priority for property buyers—especially in times like now, with Cyclone Afred posing threat to our Brisbane homes.

 

Many homeowners and property investors assume that going direct to an insurer is the best course of action. And why wouldn’t you? With low premiums and the convenience of doing it all online, it can seem like a straightforward solution.

But going direct also tends to open gaps in coverage, unexpected exclusions, and difficulties when making claims. So, how can you better fulfil your money’s worth?

This is where insurance brokers come in. These experts provide tailored advice, help navigate complex policies, and ensure you’re getting the best protection on your home.

Lauren Jones Buyers Agency spoke with Brisbane insurance broker Callum Burstow to pick his mind on some key considerations.

 

Burstow explains, “It’s very important to understand that every insurance policy is different. Even with one insurer, they may offer three different levels of coverage with differing limits and exclusions.”

 

 

Why Queensland Buyers Need Insurance Sooner Than You Think

In our glorious Sunshine State, buyers become responsible for a property from 5pm the next business day after signing the contract of sale—not at settlement (unlike Sydney, where risk transfers on settlement day).

It is therefore necessary to arrange home insurance immediately. Otherwise, you will be at financial risk.

Now, home insurance covers the property itself—fixtures, plumbing, cabinetry and all—but not what’s inside.

It is contents insurance that protects your personal belongings and household items, such as furniture, curtains, blinds, carpets, appliances, clothes and electronics.

If you are an investor, you will also need landlord cover to protect you against losses like malicious acts by tenants, loss of rent, rent default or theft by tenants. All of these can have a detrimental effect on your investment success if left uninsured or insured incorrectly.

Many people don’t realise that curtains, carpets and blinds are considered contents in a domestic insurance policy. Sometimes floating floorboards can even be considered contents. It all depends on the insurance policy you choose. So, it’s important to check and ensure you aren’t leaving yourself exposed.

Clearly, all three covers are vital to have under your belt.

For instance, Burstow shares his experience in handling the case of a man whose lack of travel insurance couldn’t protect the loss of his Rolex watch overseas. However, because he had a broad home and contents insurance policy, he was able to claim a brand new $15K Rolex watch in replacement!

How Weather Risks Affect Brisbane Property Buyers

Weather risk is a major factor in Brisbane (thank you for the reminder, Cyclone Alfred).

Due to an increased frequency of local floods, cyclones and hailstorms, insurance companies now assess properties individually, rather than by postcode.

This has led to rising premiums, as insurers need to manage risk and secure re-insurance from global providers (e.g., Munich and London). This form of cover for insurers is coming with more conditions that ultimately get passed down the line to consumers.

Unfortunately, amidst global concerns, certain regions that are ‘too high-risk’ are being removed from coverage options.

Are Insurance Brokers Worth It for Property Buyers?

Let’s break it down.

Brokers provide comprehensive advice, ensuring there are no hidden exclusions or non-disclosure issues.

Unlike direct insurers, brokers can:

• • Help bundle multiple properties for better rates.
    
    

• • Handle claims directly, expertly representing the insured and not the insurer.
    
    

• • Offer tailored solutions that surpass the standard of going direct. This ensures that you avoid underinsurance, lower limits of cover and sneaky exclusions.
    
    

• • Have the qualifications to offer specific guidance.
    
    

• • Ensure that you understand what level of cover you are purchasing.
    
    

Essentially, insurance brokers provide you with peace of mind on your insurance purchase and what it covers you for. They also assist with claims, so it’s a win/win.

Callum Burstow has proved to be a walking testament to this fact.

“In one case of a flood-affected home,” Burstow shares. “An insurance company told a family to move back in after checking the house. However, there was black mould, sewerage and asbestos traces, which was making one of the kids sick. So, Burstows Brokers jumped in and assisted with the claim. We got the insured $260K, plus around $30K extra coverage for the stress involved…A huge step up compared to the $10K the insurance company had offered initially.”

Protecting Your Home the Right Way
 

In high-risk markets like Queensland, insurance is too important for property buyers to leave to chance.

Enlisting the support of an insurance broker ensures comprehensive coverage, expert advice, and a smoother claims process.

Callum Burstow is just one of the hidden gems amongst Lauren Jones Buyers Agency’s extensive professional network, leveraged to connect clients with trusted experts.

It’s our passion, after all, to ensure every aspect of homeownership is well-advised and secure.

With the right guidance, working with a broker becomes the smartest way to safeguard your investment and achieve financial success.