How to choose the right home insurance for your home, cabin or on-site caravan | MHIA Insurance
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How to choose the right home insurance for your home, cabin or on-site caravan

Frustrated comparing home insurance policies? Struggling to understand what you actually need? This handy guide will help you choose the right insurance policy for your land lease property.

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If you're living in a retirement village which is made up of manufactured homes it's important to have the right home and contents insurance in place. However, as land lease communities can look very different from each other, it can be tricky to know what insurance policy is right for you. Afterall, nobody wants to find themselves either underinsured or paying more than they need!

And we don’t just mean villages with brick and mortar homes here. You might own a holiday cabin or on-site caravan where you own the building but not the land underneath it. Our handy guide will help you choose the right policy and make getting a home and/or contents insurance quote quick and easy.

Option 1: Home Building Insurance for manufactured homes and land lease properties

Home insurance is a must-have for any homeowner in Australia, especially for those over the age of 50 living in a land lease community or village. And as it is for any other house or dwelling, land lease home insurance covers the structure of your home - including fixtures and fittings - against a number of risks such as fire, theft and storm damage. Depending on the policy you choose, you may also be covered for other structures on your property, like awnings and garages.

While the need for home insurance is the same for most people, when choosing a policy for your land lease property, it's important to make sure it covers the type of property you own. For example, on-site caravan insurance is going to be different to a holiday cabin or a standard land lease house. Not to mention, some generalist home insurers may not offer cover for land lease homes and have specific exclusions or limitations, making their policy of little real use to you.

That’s why you may want to consider getting a home insurance quote from a specialist provider such as MHIA. Not only do we understand the particular risks connected with land lease properties, but we also automatically include cover for some things other insurers will charge extra for. So you get peace of mind and may save some money.

Not sure how much you should be insuring your home for? Use this handy calculator to estimate the cost to rebuild your house.

Option 2: Contents Only Insurance

Contents insurance protects only your personal belongings, such as furniture, clothing, carpets etc, against loss or damage. It’s especially important for land lease tenants to have contents insurance as you may be unable to have the same level of security you might employ in a traditional home.

When choosing a contents insurance policy, think carefully about the level of cover you need as it can potentially impact more than just insurance quote and premium. In the event of a claim, will this amount be enough to replace all of the items in a one room, multiple rooms or the whole house? Considering most manufactured homes are smaller, and could be impacted more severely than a larger home, taking out an appropriate level of cover in your policy is a great decision to make.

Whatever your living situation, you need to estimate the value of your belongings to make sure you have enough cover. And don’t forget to check if the contents policy covers your belongings while they're outside the home – especially if you travel regularly.

Option 3: Combined Home and Contents Insurance

Home and contents insurance is a combined policy covering both the structure of your home and your personal belongings. This combined policy is not only a convenient option for those wanting both home and contents cover in the one policy, it may also be more cost-effective than having separate insurance policies.

As with all insurance, it's important to check your PDS policy will actually cover your land lease property and contents. Always look at the specific risks in your local area and ensure that the events covered in the PDS meet them.

Choosing the right insurance policy

Before deciding if a policy is right for you, here’s some things to keep in mind:

Coverage – Make sure the policy you choose covers your specific type of property and offers the level of cover you need.

Cost – don’t fall into the trap of choosing the cheapest option. While you want a policy within your budget, it also has to provide you with the cover you need, when you need it. Otherwise, it could end up being a costly mistake.

Exclusions and limitations – Check out the exclusions or limitations in the policy PDS. For example, not all home and contents policies offer flood cover and may have unique excesses depending on the type of claim you make.

Additional cover options – Consider if the policy has any additional or optional covers available, such as accidental damage or items lost or damaged away from home.

Claims – What’s the claims process like? Can you claim online or do you have to call and speak to a claims specialist or team member?

Specialists – Is the insurer a land lease specialist? Does the person you’re chatting to understand your particular insurance needs? If they don’t it could make updating your policy or making a claim difficult.

MHIA offers a range of insurance options including home insurance, contents insurance, and home and contents insurance, designed specifically for land lease homes. With the right insurance in place, you have peace of mind knowing your home and belongings are protected. For more information on our policies, contact us by phone, email, or Facebook.