With the recent fires and cyclone season coming up, it is a timely reminder to be aware of the terms of your Contract so you aren’t left exposed.
Many people don't realise that in most cases a property is at the risk of a Buyer as of 5pm the first business day after the Contract Date not from the settlement date. These provisions are contained in the “fine print” of the Contract and are often overlooked by Buyers.
Buyers need to ensure that they are completely covered for any loss or damage to the property they are purchasing. It is recommended that a Buyer contact their insurance company and take out a cover note for the property as soon as possible after they have signed the Contract as they may not always be notified immediately that the Seller has counter-signed the Contract.
The type of insurance a Buyer should take out will depend on what is being purchased. You should discuss your insurance requirements with your Conveyancer if you are unsure.