when to insure
- Thread starter gss
- Start date
They recommend at exchange- but I'm not sure if that is double dipping, to ensure that vendor and buyer both pay insurance for the same thing. Because that's what the insurance companies get.
But you can't guarantee what insurance the vendor has in place (I guess), so perhaps it's worth while doing.
My colleague who lost his house in the ACT fires is obviously happy his house was insured. Adequately. It cost him around $300 pa for a house worth around $400K. AAMI treated him EXTREMELY well (a small plug, but because they deserved it- accomodation was already arranged for him in a fully serviced apartment the day after the fires. MrsW's boss received the same.)
He doesn't like the fact that people who could not afford such a small amount are being compenstaed by bushfire funds, banks, governements and the like. He did get a $10K payment from ANZ bank (another plug!)- but, because he had insurance (even if it did not cover replacement value), he's not eligible for any other aid.
Sorry for getting off the track- it's more to point out the value of insurance, and to suggest that this is one area not to skimp on.
Even to the point of getting revised replacement cost estimates.
But you can't guarantee what insurance the vendor has in place (I guess), so perhaps it's worth while doing.
My colleague who lost his house in the ACT fires is obviously happy his house was insured. Adequately. It cost him around $300 pa for a house worth around $400K. AAMI treated him EXTREMELY well (a small plug, but because they deserved it- accomodation was already arranged for him in a fully serviced apartment the day after the fires. MrsW's boss received the same.)
He doesn't like the fact that people who could not afford such a small amount are being compenstaed by bushfire funds, banks, governements and the like. He did get a $10K payment from ANZ bank (another plug!)- but, because he had insurance (even if it did not cover replacement value), he's not eligible for any other aid.
Sorry for getting off the track- it's more to point out the value of insurance, and to suggest that this is one area not to skimp on.
Even to the point of getting revised replacement cost estimates.
Sim
Administrator
Standard practice is to insure at contract exchange - since you have an interest in the property, you do not want to rely on the vendor having sufficient insurance to cover you.
More the point, I believe that you may be obliged to follow through with settlement regardless of whether the property burns down in the meantime - but you really need your own legal advice on that.
A thread which has already discussed this:
http://www.somersoft.com/forums/showthread.php?postid=8415#post8415
In summary - you should get your own legal advice on whether you are required to insure from contract exchange - and you should also find out what the situation is if you do not have insurance and neither does the vendor, and something happens to the property. This is not the kind of thing you want to be taking "lay" advice on !
Personally, I insure at contract exchange.
More the point, I believe that you may be obliged to follow through with settlement regardless of whether the property burns down in the meantime - but you really need your own legal advice on that.
A thread which has already discussed this:
http://www.somersoft.com/forums/showthread.php?postid=8415#post8415
In summary - you should get your own legal advice on whether you are required to insure from contract exchange - and you should also find out what the situation is if you do not have insurance and neither does the vendor, and something happens to the property. This is not the kind of thing you want to be taking "lay" advice on !
Personally, I insure at contract exchange.
I usually take out my insurance the day the contract goes unconditional - ie I have no more escape clauses. I also find that helps because prior to settlement the finance institution usually requires a copy of the insurance certificate of currency, and it's only a matter of ringing them and asking them to fax it. Much simpler.
Check out one of asy's posts on a similar subject......it might help to clarify things for you.
http://www.somersoft.com/forums/showthread.php?postid=1853#post1853
Ruby
http://www.somersoft.com/forums/showthread.php?postid=1853#post1853
Ruby
