When should I take out Insurance when purchasing a property?

Once the contract of Sale is signed, the entire risk of the property is now assumed by the buyer. Therefore, buyers should seek to take out insurance at the time of signing the contract.

This does not exempt the seller from ensuring the property is maintained and remains in the same state it was upon signing of the contract. The seller is also encouraged to maintain their insurance till settlement or advised by their conveyancer. Until settlement, the seller still owns the property and by maintaining insurance, ensure their house is remains covered in case the sale was to fall through.

However, if any unforeseeable damages were to occur (such as damages from a weather event), this would now be liable upon the buyer.