Hi All!
We just brought our first IP and waiting for settlement, during this time the agent told us to get insurance for the property as it’s our responsiblilty the day we sign the contract. If this is the case what type of insurance should I get? since we’re planning to renovate it before renting it out.Any advice is welcome.
Thanks
Aleta[blush2]Hi
I would at least get a building and contents policy ASAP to at least cover yourself ,you can always re-evaluate once you start your reno work.Cheers
kessudI would not take out contents insurance because I assume you don’t have any contents in the house. Just take out building insurance so it if burns down before you settle you are not just buying a pile of ashes.
When you renovate, just increase the insurance to cover the cost to rebuld from scratch. Don’t forget to add things like clearing the block, removal or demolishing a damaged building etc.
Wylie
That sounds like a typical REIQ Contract, and probably the rest of the states as well. I personally change the contract by inserting the clause” re: condition 4.3 Property to remain at Sellers risk. Saves me having to obtain a cover note up until settlement day and means if it does burn down I’m not stuck going through with the deal should I decide not to.
Now to answer your question simple home/building insurance should suffice.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
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