Insurance before settlement
Interesting to read differing views here. I queried my broker who said that in NSW insurance is required when contracts are exchanged but in Qld it's once contract is unconditional. However I am of view that I can't just go into the house and use it as mine since I am not the owner until settlement, so why should I insure it before then? OK so now onto a few questions. Since I will get insurance to save myself headaches that some other poor folks have suffered, can I get landlord insurance now before settlement (60 day settlement) or do I have to just get basic building insurance from any insurance company? I don't want to pay landlord insurance if only getting builiding and contents cover. Also can I actually get landlord insurance before tenants are in or is it best to just get building and contents cover now and landlord insurance when tenants are in? How difficult is it to get premium refund if I have to pay 12 months for basic building and then go to another company for landlord insurance? I know some knowledgeable person out there will have the answers for me Thanks
Just did google search and this was on Mortgage Choice site: "Responsibility for damage to the property remains with the vendor up until settlement or completion of the sale, but it is prudent for the purchaser to insure the property from exchange of contracts".
I assume it would be prudent for buyer if seller was uninsured but obviously if house is damanaged/destroyed, it is not in the condition expected when contracts were exchanged and buyer can rescind.
Interesting to read differing views here. I queried my broker who said that in NSW insurance is required when contracts are exchanged but in Qld it's once contract is unconditional. However I am of view that I can't just go into the house and use it as mine since I am not the owner until settlement, so why should I insure it before then? OK so now onto a few questions. Since I will get insurance to save myself headaches that some other poor folks have suffered, can I get landlord insurance now before settlement (60 day settlement) or do I have to just get basic building insurance from any insurance company? I don't want to pay landlord insurance if only getting builiding and contents cover. Also can I actually get landlord insurance before tenants are in or is it best to just get building and contents cover now and landlord insurance when tenants are in? How difficult is it to get premium refund if I have to pay 12 months for basic building and then go to another company for landlord insurance? I know some knowledgeable person out there will have the answers for me Thanks
Just did google search and this was on Mortgage Choice site: "Responsibility for damage to the property remains with the vendor up until settlement or completion of the sale, but it is prudent for the purchaser to insure the property from exchange of contracts".
I assume it would be prudent for buyer if seller was uninsured but obviously if house is damanaged/destroyed, it is not in the condition expected when contracts were exchanged and buyer can rescind.
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