Under contract properties coming back on the market

My guess is that if the house burns down prior to settlement, your insurer will probably argue that it is not yours.

I just insert my Special Condition which basically says to the seller to maintain their insurance until settlement day. If the house burns down before settlement, they can claim on their insurance as it is still theirs.

If the house burns down, I may or may not settle because the property would not be what I signed up for in the Contract. To settle, I would seek a price reduction .

 

Yeah, it could be a plus though if you have insurance and the vendor does not. Also insurer would say it is not mine in NSW, but they can argue it out with the vendor or vendors insurer

I would never assume a vendor has it (nor would get it because it was in a contract), I have known plenty of people that had no insurance on anything, no properties, no cars.

 

This assumes a 30 day contract not all contracts are 30 or even 60 days. Mine is cloer to 4 months which is 1/3 annual premium.

It is at their risk and if it burns down well we don't settle as it was at their risk and I'd rather not have an argument over which insurance company is to pay as it isn't my property.

If it is my property then I want to rent it out now and collect the money... you can't have it both ways.

 

No, not really, I would do the same if a long settlement too.

I understand you could also argue it is significantly different, I am not talking about if it is one month or 6 months insurance cost saving, I am talking about my financial interest and not having to get into some argument or litigation, quite possibly a very petty one, there can be many things that happen.

 

The rule with insurance is "If you CAN afford to lose it, then you DON'T have to insure it".

If the seller doesn't insure, they can afford to lose it.

 

@dabbler insurance is only valid on a house if it is lived in, if it has been vacant for more than 30 days and the insurance company finds out you won't be able to claim.

So if you are taking out insurance you better put a condition that the vendor stays there to within 30 days prior of settlement.

Or just put it at vendor's risk.

 

Many do longer than that, you just have to tell them so they know and sometimes so they can charge you more

Many also happy to insure knowing your the buyer and the place is empty for more than 30 days.

They are all different in many ways, but have not had an issue as a buyer getting a policy.

In fact I am not aware of any insurer that would not insure under these quite normal, common circumstances.

Same should go for home owner insurer, they do not have to live there during settlement, would only be a matter of telling them your selling and the period likely to be empty so they could decide what to do or charge.

Again this is very common in NSW as are 42day settlements.