Everyone knows that insurance can safeguard you against unforeseen events. And this is especially true for buyers who have yet to settle on their new home or investment property.
While settlement date may be weeks away, buyers need to have their soon-to-be new property insured in the lead up to settlement.
Real Estate Institute of Queensland (REIQ) Executive Manager Elissa Keenan said a property is at the buyer’s risk from 5pm on the first business day after the contract date.
Byers insurance provides protection prior to settlement.“As is stated in section 8.1 of the REIQ’s residential house and unit sale contracts – which are approved by the Queensland Law Society – buyers need to be aware that insurance should be organised for their new property,” she said.
“The property is legally the buyer’s responsibility from 5pm on the first business day after the contract date so it is vitally important that appropriate insurance is organised prior to this time.”
Most insurers provide this type of insurance – which can be organised very easily over the phone – for home buyers.
“Of the myriad steps in the buying process, buyers’ insurance is one of the most important as it provides protection prior to settlement. It also provides peace of mind so buyers can concentrate on, and look forward to, shifting into their new home,” Ms Keenan said.
