So you’ve taken the plunge into the property market and purchased a property. First of all, congratulations! Deciding to buy a property is a big step forward. But here’s a tip, have you considered insurance? We know, you’ve only just signed the contract of sale and you won’t actually own the house for a while yet, but what you’re probably not aware of is that the property is already you’re responsibility.
In Queensland the property is at the buyer’s risk from 5:00pm on the next business day after the contract date. What this means is that it’s up to you to protect the property from this time, even though you don’t legally own the property and probably aren’t the one living in it. Unfortunately this is how the law works in Queensland though.
So what are you waiting for! Insure your soon to be purchase!
Organising insurance for a property is a pretty easy process, with most insurance companies able to organise cover over the phone or via the internet within 24 hours. In most cases you will be taking out a mortgage for your property and where this is the case you will need to note your financier on the insurance policy as an interested party in the property. Be sure you check with them as to whether they have a required amount of cover for the property.
The type of insurance and amount of cover required will depend upon the type of property you are buying, as there are different requirements for houses, townhouses and apartments.
Buying a House:
If you are buying a house then the property will be entirely your responsibility and you will need to insure the house and all of its improvements.
This will include things such as:
- The building itself;
- All fixtures and fittings, both internal and external, including things such as appliances, light fittings and window coverings;
- Any external structures, such as a garden shed; and
- If the house has a pool all of the pool equipment.
- You will also need to take out public liability insurance for the property.
Buying an Apartment:
If you are buying a townhouse, or apartment, things are slightly different as there will be a body corporate in place for the complex or building and they are responsible for holding building insurance and public liability insurance. It’s important that you ensure that the body corporate has such insurance in place and that it is up to date. This should be noted on the contract of sale and its accompanying disclosure statement.
Therefore you will not need to take out insurance on the property itself. It is worth noting that most body corporates do not insure fixtures and fittings within the unit. These remain your responsibility and you should take out contents insurance to protect your interests when it comes to these internal elements.