Building and Landlord insurance-when?

Discussion in 'The Buying & Selling Process' started by Melmac, 28th Sep, 2017.

Join Australia's most dynamic and respected property investment community
  1. Melmac

    Melmac Well-Known Member

    Joined:
    30th Aug, 2017
    Posts:
    78
    Location:
    VIC
    At what point in buying process, should the building and LL insurance be organised? Once the offer is unconditional or a couple of days prior to settlement?
     
  2. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    You need this to be in place once the contact has been signed by both parties. It's a grey area if the house burns before you settle.
     
    megsfan, KayTea and Melmac like this.
  3. Melmac

    Melmac Well-Known Member

    Joined:
    30th Aug, 2017
    Posts:
    78
    Location:
    VIC
    Wow, okay so even when the contract is conditional? That's good to know. Thankyou.
     
  4. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    Generally as soon as you can (ie after signing the contract). In some States the risk falls on the purchaser at the point of exchange of contract so there's no point having that risk on your head for a couple bucks. On top of that a number of insurers provide free insurance until settlement.
     
    megsfan and Melmac like this.
  5. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    Corey beat me to it. why would you risk it, especially as you can get your insurance money back if it does not go through. The laws between states. I know in QLD it's when the contact is signed by both parties, I have done it enough times to know.
     
  6. Melmac

    Melmac Well-Known Member

    Joined:
    30th Aug, 2017
    Posts:
    78
    Location:
    VIC
  7. Lawrence Barnes

    Lawrence Barnes Well-Known Member

    Joined:
    13th Sep, 2017
    Posts:
    280
    Location:
    Brisbane
    Not a problem my friend, but really your solicitor should be advising you of this. If you are unsure of the process and what you need to do, call them and ask, after all you are paying them for a service. All the best to you.
     
  8. Simon L

    Simon L Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    385
    Location:
    Sydney, Brisbane
    If you need time to shop around for the best deal just sign up to one of the big guys like NRMA or AAMI as they usually have a 21 - 30 day free cancellation policy. Once you find the best deal just sign up to them and cancel existing with $0 incurred.
     
  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    LL insurance should only be needed at settlement onwards if its an existing rental or the vendor remians as a tenant OR from the date its available to rent if you intend to rent it after buying. You cant insure what you dont own which is a right to future rental income.

    Building and contents when contract is unconditional / exchange. In reality this could mean both parties have insured the same asset but its better to have insurance than argue about the issue later. for $12 a week