Which insurance to buy before settlement?

I am buying an investment property in QLD and the agreement with the seller is that I will be able to conduct open homes once the contract is unconditional.

The seller is asking me to buy insurance. If prospective tenants or property manager damage anything during inspections, will landlord insurance cover these events? If not, can someone please recommend a insurance to purchase?

 

Landlord insurance will cover anything to do with renting the property including public liability.

Building/Contents insurance will cover the structure, fixtures & fittings, as well as contents, although your personal items are not in there yet they may be things in the property such as floating floor boards which get classed under the contents insurance.

 

I believe you should be insured once you're unconditional, regardless of whether they've asked you to or not.

 

Yes from memory in QLD you should have insurance from exchange?

 

Legal issue. Depends on the contract. Many people don't realise for REIQ standard contract liability is with the buyer from Contract Date.

Well actually 5pm first business day after Contract Date.

 

I am buying a villa in a gated community in Queensland to rent out and the seller is an owner occupier who plans to live there until settlement. I spoke with my insurance broker about getting insurance as per the REIQ and she said that as the property is not tenanted then Landlord insurance will not cover anything. She also said that the Body Corporate would cover the building so don't worry about getting insurance until settlement. This seems at odds with the REIQ. Any suggestions?

 

I'm not qualified to provide insurance advice, so take this with a grain of salt, but I was under the impression you were only supposed to need your Building Insurance prior to settlement, which sounds like it's covered by the body corporate anyway?

 

True but the issue would be the addtional items not covered by building that could be damaged - floor coverings, curtains, etc.

It's a hairy one allowing people through prior to ownership. It's always seemed strange to me that you can take out insurance and potentially have to claim on a property you don't even own yet.

- Andrew