Your insurance options

Buying a home is a big financial commitment so it makes sense to insure your investment. Building replacement insurance is also mandatory to protect the property being used as mortgage security for your loan. Victoria Teachers Mutual Bank’s underwriters offer free building insurance cover for up to 90 days during your settlement period when you purchase a Home Insurance policy through us. Find out more (including eligibility criteria) here.

Insurance is also an important consideration to ensure you don’t default on your loan, or worse still, be placed in a foreclosure position.

Here are some types of insurance you might like to consider:

Building and Contents Insurance

Building insurance covers the fixtures and fittings, and any structural improvements of the home. Building Insurance is required by the lender to ensure that the financial investment is covered in the event of a number of factors occurring, for example: Fire & Explosion, Accidental Damage and Flood. The cost of Building Insurance is calculated on the type of cover chosen, any additional options, the sum insured, the type, location, age, and excess payable. Obtaining Building insurance is a requirement by your lender as a condition of the loan.

Contents insurance covers what’s inside the house, such as furniture, jewellery and other valuables and personal effects. There are different levels of Contents Insurance depending on the value of the possessions you have in your house, whether the items are rare or precious, and if you’d like cover for items outside the home.

Getting both Home and Contents Insurance is a great way to protect the assets you’ve worked hard for and offers peace of mind knowing that you’re covered in a number of scenarios.

Landlords Insurance

If you’re buying the property as an investment, Landlords insurance can cover you for events such as malicious acts by your tenant, rent default and theft by tenant.

Owners Corporation (Body Corporate) Insurance

There is a minimum insurance requirement for Owners Corporation properties, but you may also decide to increase this level of cover depending on your needs. Find out more on the Consumer Affairs Victoria website.

Loan Protection Insurance

Loan Protection Insurance (also known as Consumer Credit Insurance) provides some cover for the loan repayment if you are injured in an accident, fall ill or suffer a covered trauma and are unable to work, if you become unemployed or pass away. Depending on the type of cover, if there is a claim the money may be paid to you or directly to the lender.

Life Insurance

Life insurance (sometimes referred to as ‘Death cover’) provides a set sum of money when you die – normally to your nominated beneficiaries.

Total and Permanent Disablement (TPD) cover

Provides a payment if you are totally and permanently disabled, to cover costs of debts, rehabilitation and living expenses.

NB: Life and TPD cover are often available through your superannuation, so it pays to speak with a professional when looking at insurance cover to make sure it is right for you.

Income Protection

Income Protection provides a replacement income if you are unable to work due to injury or illness and may assist with making your mortgage repayments during this time.

Trauma Cover

Provides cover if you are diagnosed with a certain illness or injury (e.g. stroke or cancer).

Important Information:   Insurance Australia Limited ABN 11 000 016 722, AFSL 227 681 trading as CGU Insurance, Zurich Australia Limited AFSL 232 510, ABN 92 000 010 195, Insurance Australia Limited ABN 11 000 016 722, AFSL 227 681 trading as Swann Insurance and Doug Kerr Insurance Consultants P/L trading as Brokers National ABN 67 078 679 071, AFSL 246 366 are the insurance providers. In arranging this insurance, Victoria Teachers Limited, ABN 44 087 651 769, AFSL/Australian Credit Licence Number 240 960, acts under an agreement with the insurer, not as your agent. We receive commission on these insurance products as a percentage of the premium price for each policy ranging from 5-35%. This information does not take into consideration your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms and Conditions or relevant Product Disclosure Statement (PDS) before acquiring a product, available by calling 1300 654 166.

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ABN 44 087 651 769
AFSL/Australian Credit Licence Number 240 960