When do you need to organise home insurance on a new house?
If you have newly signed a contract for the purchase of a house or property in Queensland it is imperative to know from what time you will be responsible for the loss or damage to the property. As the bushfire crisis in Australia continues across Summer and into 2020 we strongly advise that you find out as you sign a new contract by speaking with a conveyancing solicitor.
House and land contracts will sometimes move the responsibility of insurance of the property to the Buyer from 5.00 pm the day after the contract date (the date that the contract is signed by all parties). This is usually 30 days or more before settlement day.
Please find property advice from the Queensland Government on Home and Contents Insurance:
“You must decide for yourself whether to take out home insurance. However, not having home insurance is very risky. Home insurance will cover you for loss or damages to the building and its fixtures. You should also consider taking out contents insurance.
If you have a mortgage, your lender can insist that you take out home insurance.
If you buy into a community titles scheme, you still need to insure your own property and contents. The body corporate will usually have to take out insurance for any common property.”
What can happen if I don’t have house insurance on a property that hasn’t settled?
You are running the risk of serious financial loss if the property is damaged or destroyed.
From the money smart government website:
‘There have been many serious floods, fires, cyclones and storms in Australia over the last decade and many people have found out too late that they did not have enough insurance cover on their home and contents. This can be extremely costly and stressful, if you lose your home. Wherever you live, your home and contents insurance cover should be enough to cover the cost of rebuilding your home and replacing your contents.’
Ensure that you have enough insurance to rebuild in the event of the loss of the property.
To review your legal obligations for the insurance of a newly purchased home in Queensland contact River City Conveyancing today.
07 3013 2300