This information has been provided by
Australian law firm, Australian Conveyancing Services and is applicable in New South Wales
only.
You have exchanged contracts for the sale of your property, and are busily planning the big day of settlement. There are many things to do, and the moving to plan.
The risk in respect of damage to the property (improvements & fixtures) passes from you to the purchaser on the date of settlement, or on the date upon which you give possession of the property, whichever is the earlier date.
Do not cancel the comprehensive policy of insurance on your home until settlement has been effected, and the money is in your bank (even if you have agreed to give earlier possession to the purchaser)!
Once settlement occurs, notify your insurance company in writing that cover is no longer required, and ask for a refund of that proportion of the premium paid by you from that date until the date of expiry of the policy. Alternatively, if you are purchasing another home, ask that the insurance be transferred to cover the new home. Most insurance companies will arrange this for you, and credit the premium that you have paid towards the premium required on your new home.
Make sure that any furniture contained in the property remains covered (probably under a separate policy), and that you notify your insurance company of your move, and your new address, and request your insurance company to cover you with respect to your furniture in transit and at your new address.
