Pre settlement checklist

[mitchp]

Hi,
Can any forum members advise me on the pre settlement phase of buying an IP (strata title)? Is there a checklist or other mechanism on this part of the process that you know of? I have in hand already:
settlement agent
finance approved
offer and acceptance signed. Final inspection to be arranged
settlement date.

I plan to retain the existing tenants. Have informed the agent but nothing has been signed yet.
What insurances do forum members think is best for units?
Any other info to assist me would be greatly appreciated.
Cheers
M

 

[Francesco]

I would get insurance immediately after signing acceptance of the contract. Get the landlords insurance, which should provide public liability insurance as well, not the building insurance which will be taken care by the body corporate. You will need to provide the landlords insurance and sometimes the certificate of the building insurance as well to the lender.

What about clarifying the terms of lease with the tenant and payment process?

All the best.

 

[crc_error]

why would you get insurance once you sign the contract? Shouldnt it begin on settlement date?

 

[Money]

why would you get insurance once you sign the contract? Shouldnt it begin on settlement date?

I asked the question 3+ years ago when I bought my PPOR and was told there's a grey area during the period you paid the 10% deposit and the settlement date.

Most people are advised to buy insurance after you paid the 10% deposit.
I refused to since I said, I don't even own the darn house yet.

But that's just me at that time. I wonder what other people do, will their buy the building insurance after they have paid the 10% deposit.

 

[eKwatee]

I asked the question 3+ years ago when I bought my PPOR and was told there's a grey area during the period you paid the 10% deposit and the settlement date.

Most people are advised to buy insurance after you paid the 10% deposit.
I refused to since I said, I don't even own the darn house yet.

But that's just me at that time. I wonder what other people do, will their buy the building insurance after they have paid the 10% deposit.

You need to insure the property on the signing of the contract because you now have an equitable interest in the property and hence a risk if anything was to go wrong and a claim was needed. The current owner also has an interest in the property and they too need to keep the property insured until settlement. The insurance is more important for freehold but also important for landlord protection and the contents attached to the unit.

 

[mitchp]

So the two essential insurances are 1) landlord's insurance and 2) a portion of the building insurance via body corporate fees - is that right?
Tell you what - how many insurances do you need these days?:
life insurance (2 of them)
PPOR building insurance
PPOR contents insurance
health insurance
car (3 of them ) insurance
IP landlord insurance
IP building insurance
etc
etc
etc
Modern life for you...
Cheers
M

 

[Psyk]

we're about to settle on our second IP and was wondering about insurance as well. We're with GIO on our 1st IP, who are other insurers that people are using?

Is the landlord insurance enough?

Is there a contents/building type insurers for investors?

 

[Spectre]

Psyk
My unit settles next week

This is a quote from my insurance guy

"The QBE terms have just been changed and the premium is $186.07 for 12 months with $30,000 cover on Contents/Landlord’s Fixtures & Fittings with a $100 excess. This includes full Malicious Damage by tenant’s cover which now doesn’t exclude such damage as paint on walls/floors etc. It also includes Loss of Rent up to $25,000 annually at no additional cost. I haven’t bothered to get a quote through CGU now as it will be more expensive than this and won’t provide any additional cover on the policy. "

I can say on another side, my house is insured with CBA/Comminsure. We lodged a claim end of November and they still havent settled it, no follow up, no chasing up tradies, no returning of phone calls etc etc - they leave everything for you to do and they only work mon-fri. Apparently they dont have enough staff... and probably so they dont have to pay out asap helps boost their profits as well.

A pinch of $&!t would give you better cover and a faster settlement of the claim (in my opinion) and they aint worth that even. The sadder part is I used to be one of the top sellers of comminsure products in the cba when I was there but we dont use or recommend them and flick the insurance thru my broker now (note I dont get anything out of it with him but I know people will be taken better care of).
Rant finished.

 

[Psyk]

Psyk
My unit settles next week

This is a quote from my insurance guy

"The QBE terms have just been changed and the premium is $186.07 for 12 months with $30,000 cover on Contents/Landlord’s Fixtures & Fittings with a $100 excess. This includes full Malicious Damage by tenant’s cover which now doesn’t exclude such damage as paint on walls/floors etc. It also includes Loss of Rent up to $25,000 annually at no additional cost. I haven’t bothered to get a quote through CGU now as it will be more expensive than this and won’t provide any additional cover on the policy. "

I can say on another side, my house is insured with CBA/Comminsure. We lodged a claim end of November and they still havent settled it, no follow up, no chasing up tradies, no returning of phone calls etc etc - they leave everything for you to do and they only work mon-fri. Apparently they dont have enough staff... and probably so they dont have to pay out asap helps boost their profits as well.

A pinch of $&!t would give you better cover and a faster settlement of the claim (in my opinion) and they aint worth that even. The sadder part is I used to be one of the top sellers of comminsure products in the cba when I was there but we dont use or recommend them and flick the insurance thru my broker now (note I dont get anything out of it with him but I know people will be taken better care of).
Rant finished.

Thanks Lukentel, I'll have a look at QBE landlord insurance.

Are there clauses around being sued etc.? for example, the tenant slips on a mis-aligned flooring, stairs etc. and breaks something etc.

 

[padfoot22]

Psyk
My unit settles next week

This is a quote from my insurance guy

"The QBE terms have just been changed and the premium is $186.07 for 12 months with $30,000 cover on Contents/Landlord’s Fixtures & Fittings with a $100 excess. This includes full Malicious Damage by tenant’s cover which now doesn’t exclude such damage as paint on walls/floors etc. It also includes Loss of Rent up to $25,000 annually at no additional cost. I haven’t bothered to get a quote through CGU now as it will be more expensive than this and won’t provide any additional cover on the policy. "

lukentel, is that a QBE direct insurance or via a different name that is insured by QBE?

That is definitely a good price for insurance. Do you know if the premium would be the same if one is to get it direct from QBE instead of an insurance broker (assumed that is what you meanted by insurance guy)?

Do you have any more info on this product? I see what I can hunt on the net.

 

[Novar]

In Qld, the property is at buyers risk on the contract signing ... from what I understand. I put a contract on a duplex last week and when I rang Suncorp to organise the insurance, she came back with a quote of more than $2000!! I forget what she said ater the 2 thousand bit!!

When I got up off the floor and questioned the quote, she assured me it is WAS correct. I insisted on a redo and the second time it came back as $500-ish. PHEWWWWW !!!!!

Moral of the story....
Sit down when you get your first quote. LOL

 

[Spectre]

lukentel, is that a QBE direct insurance or via a different name that is insured by QBE?

That is definitely a good price for insurance. Do you know if the premium would be the same if one is to get it direct from QBE instead of an insurance broker (assumed that is what you meanted by insurance guy)?

Do you have any more info on this product? I see what I can hunt on the net.

Padfoot

I wouldnt be fussed if the premium was $600... i.e. the premiums cheap anyway & after the other insurers b.s. Im happier to pay a broker 10-20% on the premium to deal with any issues that come along and can get my claim sorted rather than waiting 3-4 months. (you dont see people really happy to do that with home loans though)

For me and my job taking time out for uncountable hours every week chasing stuff... find me a broker who has tons of spare time on their hand....

So I'm happier to pay someone else do it for me

 

[Spectre]

Thanks Lukentel, I'll have a look at QBE landlord insurance.

Are there clauses around being sued etc.? for example, the tenant slips on a mis-aligned flooring, stairs etc. and breaks something etc.

Psyk
Dont know, you can talk to my guy if you like, pm me if you want his details (I'm $ - trent does insurance)