One of the most important things buyers often overlook is the importance of insuring the property you are buying immediately after signing the contract. You need to do this even though you will not be the owner of the property until settlement is completed, which may be several weeks away.
In Queensland, under the standard terms of the contract it states: “The property is at the Buyer’s risk from 5pm on the first Business Day after the Contract Date”. In insurance terms, this means if something were to happen to the property after that time, it will be up to the Buyer to rectify the issue under their insurance. For example, a pipe accidentally bursts and floods the house causing damage to carpets and plaster board. The Buyer cannot rely on the Seller’s insurance.
Some Real Estate agents provide complimentary cover they may be able extend to you, so it is worth contacting them prior to making arrangements with an insurance company.
If you are obtaining a loan to purchase the property, you will also need to list your financier as an interested third party on your insurance policy.
Still have questions? Speak to a Sempre Vero solicitor about your insurance obligations when buying your property.