KiwiLawyers

         KL Blog....

  • KL Home
  • Taufil Omar
  • Terms of Engagement
  • Trust Account
  • Contact
  • KL Blog
  • Client Testimonials
  • Publication
  • Sponsorship

11/8/2019

Importance of insurance in buying a home

0 Comments

Read Now
 
Insurance is absolutely crucial, and when borrowing from lenders to complete a house purchase, it is compulsory. Lenders will not allow a loan draw-down without written confirmation that appropriate and sufficient insurance cover is in place.  The cover has to be in your full legal name or joint names if the property is owned jointly.

Usually there is replacement insurance relating to fire, earthquake and other damage. Cover for contents go hand in hand with the replacement cover but is not compulsory. Highly recommended though!

These days you really need a valuation of the home being purchased to set the correct and allowable amount of cover to be sought. Banks and other lenders insist on this and then check the numbers in respect of what they are lending in dollar terms against the potential insurance pay-out in the event of damage to your house.

Replacement cover gives all the answers. The lender wants to know its lending is secure, and your house has the ability to be rebuilt at best while covering the amount they have lent at worst.

While fire and willful damage are the cornerstone of insurance cover and why it is vitally important, these days earthquake risk is also on everyone’s minds and must be included when arranging such cover

Share

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

Details

    Taufil Omar

    I have been in the legal industry for over a decade and have broad range of experience and skills.

    Archives

    May 2021
    September 2020
    April 2020
    March 2020
    December 2019
    November 2019
    September 2019
    August 2019
    May 2019
    August 2018
    July 2018
    August 2017
    May 2017
    March 2017
    December 2016
    September 2016
    August 2016
    July 2015
    June 2015
    February 2015
    December 2014
    November 2014
    September 2014
    July 2014
    April 2014
    March 2014
    July 2013
    June 2013

    Categories

    All

    RSS Feed


CALL US
+64 9 270 8595 

 or Email: 
info at kiwilawyers.co.nz

Picture
Picture
Picture
PLS Individual Member
Picture
Picture

Powered by TMO   |    © 2020 KiwiLawyers ~ All Rights Reserved

  • KL Home
  • Taufil Omar
  • Terms of Engagement
  • Trust Account
  • Contact
  • KL Blog
  • Client Testimonials
  • Publication
  • Sponsorship