Insurance on uninhabitable home

[dontask]

Hi Guys,

I just purchased a property with damaged kitchen and damaged bathroom. Damaged to an extent that the house is not considered habitable.

I am happy with the purchase though, because I can pay cash and it was cheap.

However, I am just wondering about insurance. In QLD, section 8.1 states that the house is at the risk of the seller at 5pm the day after the contract is signed.

Should I get insurance on the property? I am worried that someone might come and trash the place.

 

[Scott No Mates]

Does cl 8.1 say that it is the seller's risk? Double check that one. AFAIK Qld stipulateds it is the buyer's risk.

A few previous threads on this topic.

 

[Macca]

I would insure in the normal way, if asked, describe the condition as poor or similar wording

 

[marg4000]

I would insure in the normal way, if asked, describe the condition as poor or similar wording

An insurance application is a legal document. It is your duty to disclose any relevant information regarding the risk whether specifically asked on the form or not.

You sign the form and insurance is granted on the information supplied. Tell deliberate lies and a claim may be refused. At worst, you can be charged with fraud.
Marg

 

[Macca]

An insurance application is a legal document. It is your duty to disclose any relevant information regarding the risk whether specifically asked on the form or not.

You sign the form and insurance is granted on the information supplied. Tell deliberate lies and a claim may be refused. At worst, you can be charged with fraud.
Marg

All that is true Marg, but no insurance company is going to pay a claim for wear and tear to a kitchen or bathroom unless it is a LL insurance policy and has been tenanted.

I suppose a claim for fire damage could be made if it conveniently caught on fire in which case it is fraud no matter what the condition was.

There are plenty of places being insured that I would choose not to live in but have been shown through as a potential IP, I would classify some of them as unliveable so I think a description of poor condition (if asked) should enable cover for any new damage like fire or such.

 

[travelbug]

Should you get insurance? I assume that's a rhetorical question.

I always get insurance the day I sign a contract. Sure the vendors insurance should cover it but why take chances for a few dollars? If the vendor doesn't have insurance at least youngest lose everything (well except the land of course).
Just disclose that the house is uninhabitable and why.

we told them the settlement date. If a property is vacant more than 60 days you are supposed to notify the insurer. We told them it would be vacan while repairs were done and that it would be under the 60 days. We rang them when finished.

 

[wylie]

Our son could not get insurance on his new PPOR because it had no kitchen or bathrooms. It is not an easy thing to get.

I know my concern was more that it meant no public liability insurance.

Why not call a broker and see what he/she can do for you?

 

[wylie]

Just checked with son's partner who says they ended up getting insurance via a broker and it is some type of construction insurance, because they will be having a builder do a renovation, signing a contract with a builder etc.