Insurance is the responsibility of the Buyer on a Contract one (1) business day after the Contract of Sale is signed and dated.

Even though a Buyer may have the contract subject to Building, Pest and/or finance approval conditions the REIQ Contract states in the Standard Terms and Conditions that the Buyer is responsible for insurance over the property.

Recently, during the storm season we have had two instances where a Buyer had to rely on his insurance before the settlement even happened.

A classic example of one of these instances is as follows:-

A couple of years ago, Algester was hit by a violent storm on a Wednesday afternoon.  Settlement for our client, the Buyer in this matter, was due the following Friday.  Even though the Seller had current insurance on the property, the Seller insisted that the Buyer claim under his insurance policy.  The Buyer, prior to settlement, had his insurer out to the property to make an assessment of the damage and a claim was made under our client’s insurance.  The damage was repaired/replaced after settlement was effected.