When to get house and contents insurance

[seano87]

Hi all,

So I just purchased my first property (PPOR). The contract was signed by the Vendor. Building and pest came back with no problem. It's a 90 day settlement. I was just curious whether I should be getting insurance now or closer to settlment? Will I be liable if anything happens during this period?

Any information would be great.

Also, are there any other things I should be sorting out now the cooling off period has ended? I assume my broker will sort out the FHOG details, the finance and my conveyancer will do the rest? Not so sure what happens from here.

 

[Ed Barton]

Hi all,

So I just purchased my first property (PPOR). The contract was signed by the Vendor. Building and pest came back with no problem. It's a 90 day settlement. I was just curious whether I should be getting insurance now or closer to settlment? Will I be liable if anything happens during this period?

Any information would be great.

Also, are there any other things I should be sorting out now the cooling off period has ended? I assume my broker will sort out the FHOG details, the finance and my conveyancer will do the rest? Not so sure what happens from here.

You should get building insurance as soon as you sign the contract, QLD at least, I imagine everywhere else is similar.

You don't need contents insurance till you have some contents.

 

[boxdog]

You should get building insurance as soon as you sign the contract, QLD at least, I imagine everywhere else is similar.

You don't need contents insurance till you have some contents.

Yep, everywhere else is the same.. Common sense on this one guys!

 

[Ed Barton]

Yep, everywhere else is the same.. Common sense on this one guys!

It's anything but common sense.

If I turn up for the final inspection the day before settlement and the hot water system, oven, dishwasher and pool are missing I will delay settlement until they are returned.

If I turn up and the house is a smouldering pile of ashes I'm still expected to complete?

 

[seano87]

It's anything but common sense.

If I turn up for the final inspection the day before settlement and the hot water system, oven, dishwasher and pool are missing I will delay settlement until they are returned.

If I turn up and the house is a smouldering pile of ashes I'm still expected to complete?

Ed, That was the same reason I put the question forward.
If the property is not in the same condition on the inspection prior to settlement, I was of the impression the deal wouldn't be finalised.

 

[vaughan]

The house burns down, both the vendor and I have building insurance: do we both get paid out?

In the past I've been advised that I cannot get insurance for something that I have no financial interest in.

 

[wobbycarly]

The house burns down, both the vendor and I have building insurance: do we both get paid out?

In the past I've been advised that I cannot get insurance for something that I have no financial interest in.

The contract is a financial interest. And my understanding is that your own insurance will ensure you are covered for any gap if the place DOES happen to burn down prior to settlement and the vendor is under-insured.

I, too, was always interested about the answer to the first question. Just thinking out aloud here, I'd guess that no-one actually gets "paid out" - instead the property is returned to the state it was in at contract exchange (?).

Anyone with a more formal, correct answer?

 

[travelbug]

I always insure as soon as contracts are exchanged (building). That way you are covered in the event that the vendor doesn't have insurance. But you must let the insurer know if the property is vacant.
Of course both won't get paid out because only one person owns it.

I guess the solicitors discuss whether settlement will go ahead. It may be advantagious to settle (and get a new house built by the insurance company).

You need to read your contract. I know DOH contracts state that you must settle regardless of the condition of the property.

 

[SeafordSunshine]

did you pay a deposit?

Your deposit is a financial interest!
I am sure you want to insure it!
Let your insurers know that you have made a purchase!
if you paid 10% you do want cover!



Also suggest get a few quotes, sit down and read them and make sure they actually cover what you want.

Best of luck and congratulations.!
SeafordSunshine

 

[CHAOS]

We get buildings insurance the same day we sign contracts and pay deposit. I haven't had to cancel one yet due to deal not going through.

Although we did this for a car purchased through private sale. Had insurance before it left the driveway. However, after discovering how we were duped, we stopped the cheque, reported it to police and had owner collect the car (another story). We contacted the insurance agency and they refunded our insurance becasue of the attempted fraud.

 

[wylie]

Would be keen to hear more about your car purchase and the attempted fraud. Maybe in a new thread?

 

[CHAOS]

Ok will post in coffee lounge.

 

[Coconutwheels]

I was purchasing a property last year that actually did burn down after we exchanged.

Did not have insurance in place at the time, got the deposit back within a week. Only out of pocket expense was $500 solicitors fee and the the pest and building inspection $500.

I asked my solicitor and insurance broker what would of happened if I'd had insurance in place. They didn't really give a black or white answer, bit of a grey area it seemed.

I now insure from exchange though!

Ben