when to take out insurance?

[roe]

When do people take out insurance on the new purchase place?
after exchange of contract or at settlement?

 

[Tyla]

When do people take out insurance on the new purchase place?
after exchange of contract or at settlement?

Building insurance (minimum) at exchange of contracts (edit: unconditional contracts)

 

[D.T.]

I generally do once i go unconditional.

 

[Big Will]

I usually do it once it becomes unco.

However in saying that in VIC the vendor must hand of the property as inspected. So if the place burnt down it wouldn't be as inspected so you can get out.

However since you would be already invested in the property and liked the location if you took out your own insurance you would be compensated and rebuild the way you like.

 

[roe]

ok thanks will do on the day of exchange

 

[D.T.]

I usually do it once it becomes unco.

But I'm always unco

 

[MTR]

But I'm always unco

I used to do this too until my settlement agent advised that I need to do this on exchange of contract, I think that's where you are legally liable.

 

[EN710]

I used to do this too until my settlement agent advised that I need to do this on exchange of contract, I think that's where you are legally liable.

So I should not wait until unco?
The property is not tenanted, so the landlord cover is a waste until it's rented then

 

[Big Will]

I used to do this too until my settlement agent advised that I need to do this on exchange of contract, I think that's where you are legally liable.

How can you be liable for something you do not own?

The vendor is liable to hand over the house the same as you inspected it. You are only liable to pay money at settlement.

 

[D.T.]

How can you be liable for something you do not own?

The vendor is liable to hand over the house the same as you inspected it. You are only liable to pay money at settlement.

Different rules in different states.
In SA you're liable for it as soon as the vendor signs contract.

 

[chindonly]

Once contracts are signed usually.

 

[RPI]

QLD

The risk passes to the Buyer at 5pm the business day following the signing of the contract.

Off the Plan Contracts vary that to settlement.

 

[bellz]

As advised by pp, in Qld, insurance risk passes to buyer at 5pm on 1st business day after contract signed.

 

[Rolf Latham]

but in qld with the usual finance clause.......... there is a get out

if the place burns down a lenders snt going to finance the thing at 80 % lvr combined land and build

ta
rolf

 

[HD_ACE]

Depends on the state. But as soon as you have a financial interest in the property is when I would be taking it out.

 

[roe]

from exchange to settlement is only a few weeks, I just take out the insurance just be worry free, only 80 bucks or something extra