INSURANCE WHEN YOU BUY A NEW HOUSE OR PROPERTY IN QUEENSLAND
If you’ve just signed a new contract for the purchase of a house or property in Queensland it’s essential to know as you are signing when you will become responsible for the loss or any damage to the property.
With the ongoing bushfire crisis across Australia where already close to 612 homes have been destroyed we strongly advise that you immediately find out by talking to your conveyancing solicitor.
Generally most house and land contracts will transfer the responsibility of insurance of the property from 5.00 pm the day after the contract date (the date when the Seller and the Buyer have both signed the contract). This is often 30 days or longer before the day of settlement (when the property is transferred into the Buyer’s possession.)
advice from the Queensland Government on Home and Contents Insurance
What could happen if I don’t purchase insurance for a new house?
You run the risk of serious financial loss if the property is damaged or destroyed after you have entered into the legally binding House and Land Contract. With increasing annual temperatures and longer fire seasons each year in Australia purchasing insurance has now become a crucial decision for all new house and land buyers in Queensland.
Advice from ASIC’s money smart 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.”
CHECK BEFORE YOU SIGN!
We advise that you compare insurance contracts with different companies and also to make sure you do your research well by comparing the terms. In addition it’s possible there may not be a great difference in price to increase the cost of insurance to cover rebuilding in the case of fire or natural disasters. Better to be safe than sorry!
If you have just signed a new contract for buying property in the greater Brisbane area contact Horrocks Solicitors to review your obligations and confirm when you are liable for the insurance of your new property on 07 3013 2300.