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I always get the cover prior to settlement - you need to organise it for the lender at settlement anyhow and a few extra dollars of cost for the 6 weeks or so gives me the piece of mind that as having committing too owning the property I have some protection if something goes wrong.
I guess if in NSW if that does not hold then the extra cost is deductible anyhow.
Hope this helps
Jane
I believe your conveyancer is mistaken; I don't believe the law varies by state.My conveyancer said the article related to an event in NSW, and the law in QLD is different. Once you have a financial interset in the property, you need to get insurance for it. So, I guess it depends on which state you are in.
The Insurance Industry Ombudsman would beg to differ. The pertinent staff member told me that if you have an obligation to purchase the property, you have an insurable interest.You have NO protection if something goes wrong as you are not the owner. You can't claim on a policy for something that's not yours.
I
The Insurance Industry Ombudsman would beg to differ. The pertinent staff member told me that if you have an obligation to purchase the property, you have an insurable interest.
I genuinely don't want to sound like a smart-***, but what's the basis of your view? I ask because I know it's quite possible to get contradicting opinions from legal experts, and I'd like to know how much weight to give to this position relative to the IIO.
Otherwise, a month or two's premium is simply "cost of doing business".
If you're looking for a remarkable insight, probably best to view the other posts, just thought I'd add my experience.
I had to take out an insurance policy on the full value of the unit I bought last year, as I was moving in prior to settlement (due to delayed settlement on vendor's end). I can only presume the vendor's solicitor wouldn't have requested it if it wasn't going to provide cover in some way.
Cheers
Greg