Join Australia's most dynamic and respected property investment community

When should I be getting insurance?

Discussion in 'General Property Chat' started by markson, 2nd Jun, 2016.

Tags:
  1. markson

    markson Well-Known Member

    Joined:
    14th Feb, 2016
    Posts:
    310
    Location:
    NSW
    Hi Everyone,

    I have just signed a contract for a property subject to B&P and finance. The paperwork I have received from the solicitor states "take out insurance on the property immediately".

    Should I be waiting to get the results from the B&P first? Being a house do I only need Building Insurance or do I also need to add contents?

    When I do an insurance quote it always asks if I am the owner, but technically I am not yet so do I just say yes?

    Thanks
    Ben
     
  2. TheGreenLeaf

    TheGreenLeaf Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    46
    Location:
    Here and there
    The usual advice is to have insurance in place as soon as you're unconditional.
    With a contract in force, you're committed to purchase the property, better to be covered in case something would happen before settlement...
     
    House likes this.
  3. Jerry O

    Jerry O Well-Known Member Premium Member

    Joined:
    21st Jun, 2015
    Posts:
    360
    Location:
    NSW / Melbourne
    You are part responsible of the property you are purchasing once a contract has been exchanged. Hence the advice of the solicitor to get an insurance in place asap. I normally get the insurance once the contract is unconditional - meaning all clauses has been met with satisfactory results. But that is the risk I take each time. Best to be insured from Day 1 I would say.
     
  4. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

    Joined:
    4th Mar, 2016
    Posts:
    222
    Location:
    Melbourne
    Some brokers have agreements with insurers where you can get free coverage up until settlement, you then chose if you want to continue the insurance with the company (on an opt-out basis). Let me know if you want more info :)
     
  5. markson

    markson Well-Known Member

    Joined:
    14th Feb, 2016
    Posts:
    310
    Location:
    NSW
    Thanks. Think I will wait for the day before it goes unconditional.
     
  6. markson

    markson Well-Known Member

    Joined:
    14th Feb, 2016
    Posts:
    310
    Location:
    NSW
    Also is contents insurance necessary? House is unfurnished.
     
  7. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    If it's in QLD you need to get it straight away.
    Not that it's totally not covered, but if it's the other parties insurance lawyers vs you, who do you think will win?
     
  8. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,280
    Location:
    Paradise, Brisbane
    Contents are usually things such as curtains and light fittings and carpets. Before anyone starts an argument on the pedantics of fittings vs fixtures, remember that insurance companies are in the business of getting out of paying if there is a claim. Better to get it all covered (pay in 30 days) and then cancel or reduce it later if you don't really need it.
     
  9. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    They sure are, anyone with even a slight familiarity with the Brisbane floods should be aware of that.
    Better to go with someone's recommendation than going with just anyone.