Home Insurance and Conveyancing | Do i need insurance when buying or selling a home? |

INSURANCE

Risk

The property is at the buyers risk from 5:00pm on the first business day after the Contract Date. Despite this, the seller has an obligation until settlement to take reasonable care of the property. If the property is damaged between the Contract Date and settlement (for example, due to fire or vandalism) you will be required to settle in accordance with the contract despite the damage (unless a residence is so destroyed or damaged as to be unfit for occupation).

If damage occurs, you may in some circumstances be able to gain the benefit of the seller’s insurance. We do not recommend that you rely upon this right as:

(a) the seller may not take out insurance;

(b) the seller may choose to cancel their insurance;

(c) the event that causes the damage may not be covered; or

(d) other factors may preclude recovery.

We recommend that you take out insurance as advised below. You can arrange insurance by contacting an insurance broker or home insurance company directly.

PURCHASING A HOUSE

If the lot you are purchasing is a residential house, not in a Community Title Scheme As the property is at your risk, we recommend that you arrange property insurance cover for house, contents and public liability.

PURCHASING A TOWNHOUSE OR UNIT

If the lot you are purchasing is a lot in a Community Titles Scheme with common walls The body corporate is responsible for insuring the building for replacement value and public liability for the common property and any relevant body corporate assets. We recommend obtaining insurance information as part of our searches and you will need to satisfy yourself the insurance is adequate. We recommend that you arrange insurance cover for the contents of the unit (which will include things such as carpets, curtains and internal blinds) and public liability insurance for the interior of the lot.

If the lot you are purchasing is a lot in a Community Titles Scheme with no common walls The body corporate is responsible for public liability insurance for the common property and any relevant body corporate assets. The body corporate may insure the building with the agreement of all lot owners. We recommend that you arrange insurance cover for the building (perhaps by way of a cover note), the contents of the unit (which will include things such as carpets, curtains and internal blinds) and public liability insurance for the interior of the lot.

The building insurance should cover you until you are able to discover by search whether the body corporate has common insurance for the building. If the body corporate has not insured the building then your insurance of the building will be relevant, and you should pay the applicable premium. If you are satisfied with the body corporate insurance you can cancel your building insurance, but we recommend you still maintain insurance of the contents and public liability within the unit.

INSURANCE AND FINANCE

Insurance if obtaining finance If you are obtaining finance it will be necessary for your financier to be noted on the policy as mortgagee. You should arrange for your insurance broker or home insurance company to attend to this for you.