When should I be getting insurance?

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

 

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...

 

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.

 

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

 

Thanks. Think I will wait for the day before it goes unconditional.

 

Also is contents insurance necessary? House is unfurnished.

 

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?

 

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.

 

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.