Understanding Insurance when buying a house in Queensland
Many people don’t realise that when purchasing a residential property in Queensland that the risk for the property passes to the buyer from 5pm on the first business day after the contract date. This risk is not only for property damage but also personal injury.
If the property is damaged between the contract date and the settlement date, unless the property is significantly damaged or completely destroyed, the buyer may still be obliged to go ahead with settlement. Although the seller does have the responsibility to be reasonable in looking after the property during the settlement period, it is very important that you have insurance to protect your interests and to reduce risk if there is accidental damage (such as a storm or fire).
If you are buying an investment property, you may not be aware of any injury or accident that may have occurred until a long time after settlement. And the seller’s insurer will invariably deny coverage if it was during the settlement period.
Therefore it’s very important to organise insurance immediately after you sign a contract. If you have any questions please contact the team at SPM Law 5440 4800 www.spmlaw.com.au