Why Both Buyers and Sellers Should Have Insurance Cover Once a Sale Is Unconditional
Still Yours, Almost Theirs – Who Insures What, When?
When a property sale goes unconditional, it’s easy to feel like the hard part is over. The contract’s signed, the excitement’s building… but there’s one more step in this in-between chapter that’s often overlooked - and it could make all the difference:
Insurance.
At this point, ownership hasn’t officially changed hands, but both the buyer and seller now have a vested interest in the property. So what happens if something unexpected occurs before settlement? A fallen tree, storm damage, or burst pipe could quickly turn into a costly drama - unless the right cover is in place.
For Sellers:
Keep Your Cover Active
Even though the sale is underway, you’re still the legal owner until settlement. That means your building and contents insurance should remain active right up until the moment the keys are handed over.
It might be tempting to cancel early and save a few dollars, but doing so could leave you financially exposed in those crucial final weeks. Better safe than sorry.
For Buyers:
Get Covered From Day One
It might feel early, but most legal professionals recommend taking out building insurance from the moment the contract becomes unconditional - not from settlement.
In fact, many contracts shift responsibility for the property’s condition to the buyer at this stage. So putting cover in place now is a smart move to protect your future home (and your peace of mind) from any nasty surprises.
The Wrap-Up:
Think of overlapping insurance as a shared safety net - it’s not about paying double, it’s about ensuring no one’s left vulnerable. During this transition phase, a little extra caution goes a long way toward protecting everyone’s peace of mind.
Not sure where to start or who to speak to? Give us a call - We can connect you with trusted professionals who’ll make the process simple and stress-free.
