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At what stage should you insure your property?

Discussion in 'Real Estate' started by Billv, 23rd May, 2008.

  1. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    By Pamela Yardney
    Many investors think that they don't need to insure their property
    until they have the keys to their new property in their hands.

    Wrong!

    Just whose responsibility it is should some disaster does befall your new home during the settlement period is very much a grey area.

    While many purchasers don't insure their properties until they take possession, I have always recommended that insurance be taken out on the day of signing the contract to purchase your property or at the latest when the contract to purchase becomes unconditional.

    While you would logically point the finger at the vendor, particularly if a fire occurs while they are still living in the house, some insurance companies may not agree with this and if you haven't covered your bases and taken out your own policy, look out!

    This was reinforced a while ago when a Victorian purchaser bought a home on an unconditional contract but did not arrange insurance until settlement.

    The whole article is found here:

    At what stage should you insure your property?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Agree - once contract is signed you have a legal resposibility, and should insure the property immediately (or at least arrange for a cover note for the short term until you can shop around).