Insurance cover til settlement

[Bazza]

Hi Guys,

Just signed a contract on another IP today in Varsity Lakes on the Gold Coast. Great house in a popular area just 2.5km from Burleigh Beach and 2km from Robina Town Centre - can't go wrong.

The agent pointed out to me that under section 8.1 of the standard REIQ contract that: "The property is at the buyer's risk from 5pm on the first business day after the the contract date". Meaning that we are responsible for house insurance. This is news to me?

Should I take out insurance cover even though the building & pest inspection and finance is still to be approved?

Cheers,

Bazza

 

[steveadl]

Yes Bazza, get your broker/insurance co. to place a cover note on it today. If for some reason you cancel the contract, just cancel the cover note.

 

[Raddles]

HI there
wouldn't hurt to start getting yourself organised because once your contract is unconditional - then you are well and truly at risk.
Also your mortgagee likes to see the insurance certificate to see you have their interest noted and that you have sufficient cover. If you wait till settlement - it could hold you up.
Often there is a lead time before you have to pay for the insurance - so how about making the inquiries. Better to have double the insurance than none at all.
thanks

 

[Bazza]

Thanks guys - will do. Better safe then sorry I guess.

Cheers,

Bazza

 

[LynnH]

Bazza

It has always been the case in Queensland that the property is at the buyer's risk from date of contract - as you say, better safe than sorry!

Cheers
LynnH

 

[The_Bludger]

I purchased on Saturday and insured on Monday. Also took out Landlords insurance while I was at it. Better be safe...

 

[Player]

I also always insure immediately upon contract going unconditional in Vic. I echo everyone elses suggestion and would insure as well. If deal falls thru due to pest or building cancel cover note/policy. Any small cost would be insignificant compared to cost of pest/builing inspections and for the peace of mind in the event of a claim.

Hope the deal works for you Bazza. The Varsity precinct is terrific and should rent well.

 

[Aimjoy]

Should I take out insurance cover even though the building & pest inspection and finance is still to be approved?

As the others have said - YES, absolutely. You have an "interest" in the property and you need to insure it. Its so cheap too - its a no-brainer.

Along with the others - I always do it.

And congrats too btw!

Aimjoy