About property insurance

Here’s an important point about insurance…

Often first time investors don’t realise that the risk of damage to a property passes to the buyer shortly after a contract is created.

As you can imagine, this can potentially cause some serious problems if anything goes wrong and the buyer hasn’t taken out appropriate insurance.

This can simply be insurance in the form of a cover note (or interim insurance) and will cover the risk of damage pending settlement.

If you haven’t got insurance and the property is damaged you will either have to fork out for the damage yourself or fight a costly legal battle with the seller, if you feel you have a case.

Another point you may not have considered is that some insurance companies will not provide property or tenant insurance in certain areas, particularly in lower socio economic suburbs.

When buying a property be sure to find out if it is possible to obtain insurance in the area you are buying into.

Make sure you know all about the mistakes many other investors make, so you don’t end up LOSING money the same way. Find out more at:

http://www.RealEstateSecrets.com.au/mistakes

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets