Hi all,
Just wondering if there is any need to take out landlord insurance on strata titled properties after an offer is accepted like you would with a stand alone house? Building insurance is covered under body corp but what about landlord insurance? What if the tenant destroys the place before settlement? Is that the responsibility of the current landlord/vendor up until settlement since the contract says "all fittings, fixtures …..as inspected"?
There are varying opinions as to whether you can or should take out insurance on a property prior to settlement – my understanding is that since you do not have an insurable interest in the property ie you do not own or lease it, you cannot legally insure your rights to the property however if it burns down or is damaged you would have recourse on the vendor under contract for not providing the item for which you have contracted and inspected.
Hi there,
Having worked in real estate in WA and currently in Insurance I thought I might put in my 2 cents worth here. Firstly the fact that it is strata titled property has no bearing on the need for landlords insurance. Landlords insurance shhould be taken as at settlement and I recommend you go through a landlord insurance specialist not one of the many quasi landlords policies that are currently available their premiums are cheaper but their coverage really sucks! (I work for one of those companies and have my landlords insurance elsewhere)
Secondly there is no need for you to take any insurance out on the property prior to settlement unless for some reason you are taking early possession and it is stated in the terms of the early possession that insurance will be your responsibility. Legally you have no responsibility for the property until settlement and any damage caused between your final inspection and settlement should be rectified by the current owner otherwise settlement can be delayed until such time as the damage is fixed. However if there has been damage and you just settle without having it fixed you may not have any leg to stand on. Perhaps have another inspection if you are realy worried on the morning of settlement before giving the green light to your settlement agent to finanlise the transaction.
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