Building insurance prior to the settlement

Hi everyone,

our broker just emailed me that I need to get a building insurance prior to settlement and needs to be minimum $400,000.it’s a freestanding/Torrens title(PPOR).What’s the rationale behind this? As when I previously bought an apartment, I wasn’t required. Also, should I purchase a building insurance worth $1,105,000 as this is the amount we will be paying the property for? What building insurance company is a good
One? Will I get a discount if I’m taking a landlords insurance from my IP in the same company’s ? TIA

 

Imagine if the vendor wasnt insured ? You want absolute knowledge that if the home burns down the day of settlement or earlier you have the $$$ to rebuild rather some long drawn out dispute with the former owner who only owns the land as they were uninsured. You are insuring your interest in the contracted property and the extra days of duplicated cover is a trivial protection cost. You cant insure land - Just the cost to rebuild. The assessment of insurance value should consider extrar costs like demo, site costs etc. Discuss with an insurer. You also will likely need a contents policy for plant items, light fittings, curtains etc and carpets etc.

An apartment will have a strata policy that covers the main structure and common areas. Thats what strata levies helps pay.

 

Anyone have any recommendations for building insurance providers in this market?

 

Insurance is pretty much needed for all properties .

Either through strata or individually on Torrens title.