This information has been provided by
Australian law firm, Australian Conveyancing Services and is applicable in Queensland
only.
When you sign a Contract to buy a House/Unit or Townhouse, the risk for the improvements on the property passes to you as Buyer (on 5pm of the next working day) under the standard REIQ Contract.
So it is very important that you arrange for insurance to cover any potential damage to the property.
Most insurance agencies can organise a cover note for you over the telephone or Internet. If you are getting finance for the property, be sure to note your financier as the mortgagee on the policy. Some financiers will require you to get a formal insurance certificate before you settle and give them a copy.
Exactly what insurance you need depends on whether the property is a House or a Unit/Townhouse.
Insurance for Houses
Make sure that the value of all improvements are covered. Here is a handy checklist:
The house itself. Make sure that it covers kitchens, bathrooms, curtains, light fittings and other fixtures. Fixtures pass to you as part of the property
peripherals, such as other buildings or things that remain outside of the house, such as garages, garden sheds, and pool equipment
any contents that you
have agreed with the owner will stay (eg any furniture,
etc)
Insurance for Units/Townhouses
Although the Body corporate for the complex will most likely
have insured the complex, this does not mean that the Buyer
is safe.
The insurance taken out by the Body Corporate normally only covers the exterior walls of the unit, the common property, and public liability for accidents on common property. The Buyer needs to fill in the insurance gaps.
It is therefore a good idea to contact the Body Corporate to find out exactly what their insurance covers, and what it does not. Most Body Corporate insurances will not, for instance, cover the unit’s contents, or public liability for accidents that occur within the unit.
