First home buyers should compare building and contents cover, policy limits, excesses, exclusions and whether the insurer offers replacement or sum-insured cover. Check that the building sum insured reflects likely rebuilding costs, including demolition, debris removal and professional fees, rather than the property’s market value. If you are buying a strata property, the owners corporation may insure the building, but you may still need contents and personal liability cover. Reviewing the product disclosure statement and seeking advice from a licensed insurance professional can help you assess which policy suits your circumstances.