Owning a home is usually the largest asset that anyone will own in their lifetime and protecting this asset is a must. We protect our homes against fire and damage etc by taking out building insurance and in fact it is a requirement of our housing loan that we keep the building insured.

Whilst the need for building insurance is obvious, there may be other risks that you were not aware of when you purchased your home and risks that could cause you loss. For example:

  • What if you discovered that the previous owner had enclosed a veranda or extended the house without approval and Council required you to demolish or upgrade the structure.
  • What if your neighbour discovered that the fence was on the wrong boundary and you had to relocate your driveway so the fence could be relocated.

All of these would all be expensive to rectify but you can insure your property against these types of risks too. This insurance is called "title insurance".

Title insurance is usually taken out before settlement of your purchase and the premium payable is a one-off payment which provides you with protection for as long as you own the property.

Some other types of issues that title insurance protects you against are losses incurred due to:

  • planning and title defects, such as unregistered easements or zoning issues
  • unapproved or illegal structures and building works, for example an unapproved pergola or addition of a room.
  • unapproved building modifications, such as relocation of kitchen or bathroom.
  • boundary defects, such as a fence being on the incorrect boundary.
  • identity theft or fraud.

At Kells we discuss the above issues and title insurance with you at the time of purchasing your property.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.