Double dipping insurance

From: Eric Williams


Can anyone enlighten me please, does any other state have the same sharp practice as Queensland.

Buy a house sign the contract and then be legally bound to take out property insurance immediately. Without the current owners permission you can't enter the premises, carry out modifications etc.
Legally you don't own the property but both you and the owner(?) have insurance covering the property.

If the place burnt down could we both claim, I don't think so.
Is this yet another legal shady practice of double dipping?
What can be done about it I ask, would consumer watchdogs put up with this type of practice being applied to cars?

Eric W.
 
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Sim

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Reply: 1
From: Sim' Hampel


This is standard practice everywhere... once the contract is signed you assume liability for the property, and so must be insured. This is mostly a requirement of your lender, as they need you to have coverage in case it burns down - you will still have to settle regardless !

 
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Reply: 1.1
From: Paul Zagoridis


It's also in the nature of contracts. You now have an insurable interest. You are not obliged to insure the house if you don't want to.

The same occurs for large business transactions. As soon as you can lose and asset you should insure it if its loss would cause unacceptable pain.

Paul Zag
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Reply: 2
From: Rolf Latham


Hi Eric

Common Practice, encouraged by enlightened advisors and normally called CYB.

Ta

Rolf
 
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W

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Reply: 3
From: Simon St John


Eric

I take you point and I was talking to my partner about this the other day.

Sure you need to insure from date of contract to CYB as Rolf says.

But I think the point Eric is making is that the insurance industry is laughing all the way to the bank on this because on every sale transaction that occurs, there is a period of, say 30 - 90 days when two parties are paying insurance premiums on the one property.

Cheers,

Simon
 
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Reply: 3.1
From: Asy .


Yep, it's a sham, but ya gotta do it.

Even though the contract, and the legislation both state that the vendor must insure the property for the benefit of the purchaser...

It is still a good idea (I think mandatory) to get your own insurance, as soon as you purchase, because, if something happens, better safe than our of pocket.

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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