Between searching for your dream home to making an offer, there are many things to think about when you’re buying a home, especially for those who’ve never done it before. Here are a few common questions from first home buyers.
What resources can I use when researching a property?
Before signing on the dotted line, it’s important to thoroughly research the property you’re interested in, the surrounding land and area so you understand what you’re buying. Here are a few starting points that can provide valuable information about the property:
A pre-purchase inspection like a builder’s report can help you understand how the property is built and what materials were used.
The Land Information Memorandum (LIM) provides a summary of information the local council holds about the land, such as natural hazard risks, issued consents, water services and drainage.
The record of title is a legal document that is specific to the address and tells you what type of land you’re buying and if there are any restrictions against the property.
Natural hazards and weather are important considerations when you’re looking to buy a house. On top of the LIM, you might want to look at the Natural Hazards portal, which will give you area and property specific information and tell you if there's been any Natural Hazards Commission Toka Tū Ake settled claims at that property. Some councils have also made flood data available to the public which can help you can make an informed decision.
A property lawyer can help you review documentation, fill in the paperwork and spot any potential hazards and issues with the property before you commit to purchase.
What information do I need to get a home insurance quote?
Once you’ve found a house that ’s right for you, have a look at insurance options, read the policy wording and, when you're ready, get a home insurance quote. This way, you can understand the terms of the insurance cover and its cost so you can account for it in your overall budget. This can be done quickly and easily online.
To get a quote from AA Insurance, you’ll need to have the following information to hand:
The construction material of the house, the year it was built and whether it’s watertight, structurally sound and well maintained.
The layout, for example whether it has any outbuildings or other features, the number of levels, the number of covered car spaces.
The size of the house (in square metres).
The property’s sum insured, which should reflect the cost to rebuild the house. Please note, sum insured does not refer to the market value of your property or how much you paid for your house.
Information regarding any home or contents claims, losses or damages made by yourself, or anyone covered by this policy in the last three years.
Any current security systems installed at the property.
Take time to check that the information you’re inputting is correct as this will be used to determine whether the property meets our underwriting criteria. Insurance quotes are generally valid for 30 days, after which they may be adjusted by the insurance provider.
What documentation can my insurer provide to assist me with my home purchase?
You may be asked by your mortgage or loan provider to provide proof that the house you’re looking to buy is insurable. There are a few documents that can help with this:
If your settlement date is more than 45 days out, we can provide you with a letter of intent. This means that we have approved the quote according to our existing underwriting guidelines, and this approval will remain until the policy is started, provided it still meets our underwriting guidelines.
If your settlement date is within 45 days, you can accept your quote and confirm your policy to start within this timeframe. Once confirmed, we can provide you with a Certificate of Currency. A Certificate of Currency is a summary of your policy and contains information about your insurance cover.
There’s a lot to think about when buying a home, but it’s important to take the time to do your research and consider seeking appropriate advice from a property lawyer or builder if there’s anything you feel unsure of. This will help you make an informed decision so you can feel confident in your investment.
Any questions?
Now’s a great time to review your insurance. We recommend checking your details are up to date and ensuring the policy and cover you’ve chosen is right for you and your insurance needs.
If you have any questions about your insurance, need to update your AA Insurance policies or would like a quote, don’t hesitate to contact us. We’re open from 8am to 8pm weekdays and from 8am to 6pm weekends and public holidays.
This blog provides general information only and is not intended to be a recommendation or personalised financial advice. Excesses, terms, conditions, limits and exclusions apply to AA Insurance Limited’s policies. Please check the policy wording for details of cover. The provision of cover is subject to the underwriting criteria that apply at the time.