How much to insure for?

Hi guys,

We recently bought a brick veneer house in Melbourne for 500k. It's a 3/1/1 home, built between 1970-1980 and we insured it with Terri Scheer. My partner has insured it on 500k as someone's advised her so. However to me that sounds too much, because we own an almost new property in Brisbane (built 2008, 620k, 4/2/2) that we have insured on 450k.

Does 500k sound like too much? How to I estimate this figure?

Thanks a lot!

 

Concrete roof tiles, in good condition and only needs a little paint and a little plaster.

 

I generally insure mine for somewhere over what the bank requires and what i think it will cost to rebuild. From memory i've insured a 3/1/1 for around $275k with the highest possible excess.

 

Thanks @neK @Rolf Latham

So does 500k definitely sound excessive?

 

It's around 150$. So probably not a biggie in the big scheme..

 

What type of insurance to buy once u sign a contract on a property where the previous owners are living?

While trying online options it ask about the use of property. Technically this doesn't fall under rental or owner occupied yet.

Also weather to insure for building or building and contents?

 

I think you'd want to choose it's purpose as a rental for the period that someone else is living in it. You can change it once you've settled. I'd choose the building and contents option to cover you for carpets, curtains/blinds, basically anything that could come loose if you were able to pick your house upside down and shake it...

 

If you are lucky enough to buy at or below land value, then worst case scenario you could just not rebuild and sell for land value. Very few are in this category though.