Whether you are buying a business, holiday home or family residence, it’s important to get full insurance before the purchase is settled.
Is insurance necessary?
Generally, if you are refinancing or taking out a mortgage with a bank or lending institution to finance a purchase, you will need to provide proof of insurance before they lend you the money. If they are taking out a mortgage to secure their loan then they will require the insurance company to note their interest on the policy. In the event of a total loss, or other, claim they may want the loan to be repaid directly from the insurers.
An experienced insurance broker may be able to find a policy for a difficult or unusual purchase, such as a partially built home, or assist you in finding a policy at a reasonable rate.
When you sell a property or business, remember to cancel your policy or have it transferred to your new purchase.
Confused about what sort of insurance you need to settle?
For legal advice on insurance requirements please contact us for advice or call to speak to one of our team on 0800 PPTYLAW (0800 778 952) or+64 6 3705102.