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Landlords insurance

Discussion in 'Real Estate' started by pudsa, 25th Jun, 2007.

  1. pudsa

    pudsa Well-Known Member

    Joined:
    19th Oct, 2005
    Posts:
    55
    Hi all

    Have a quick question re: when to take out insurance on IP. We've made an offer, had accepted and are paying 10% deposit tomorrow - do we need to insure in our name now or on settlement?

    Thanks in anticipation.;)
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    9th Jun, 2005
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    Location:
    Sydney, Australia
    As soon as the contract is unconditional you should arrange building insurance (at least a cover note) - as you are still required to settle, even if the place burns to the ground !!!

    As far as landlords insurance goes - it's probably not strictly necessary, provided that your building insurance covers you sufficiently. Watch out for clauses like "malicious damage exceptions" in the building insurance ... which basically means that if someone burns the place to the ground out of spite, your building insurance may not cover it, and you'd still be required to settle. Of course, there are all sorts of legal avenues you could try if such things did happen - but that may not stop you from losing quite a bit of money through penalties in the meantime if you can't settle without your bank finance.

    If you get your landlords insurance together with your building insurance, it may just be easier (and safer) to get it all at once.

    Not sure what everyone elses approach to this is ?
     
  3. Tropo

    Tropo Well-Known Member

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    17th Aug, 2005
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    Location:
    NSW
    "If you get your landlords insurance together with your building insurance, it may just be easier (and safer) to get it all at once"


    Yep....Very wise advise. :p
    I got both two months prior to settlement date (house was not finished yet)
     
  4. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
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    Location:
    Sydney
    Sim's answered this already, but I'd still get landlords insurance for further peace of mind. Particularly if they skip town without paying rent or kick the walls in..... you just never know.