Building Insurance
Government & Compliance
Insurance that covers the physical structure of your property against damage from events like fire, storms, and flooding.
Full Explanation
Building insurance covers the cost of repairing or rebuilding the physical structure of your property if it is damaged or destroyed. For houses, you arrange this yourself. For strata properties, building insurance is typically included in your strata levies (arranged by the body corporate). Building insurance is separate from landlord insurance (which covers rental-specific risks) and contents insurance. Most lenders require building insurance as a condition of your mortgage.
Example
A storm damages your roof causing $15,000 in repairs. Your building insurance covers the cost minus a $500 excess.
Frequently Asked Questions
Is building insurance tax deductible?
Yes. Building insurance premiums for investment properties are fully tax-deductible in the year paid. For strata properties, the insurance component is included in your deductible strata levies.