Once contracts are exchanged, who is responsible for the insurance coverage of the property?

The seller holds the insurable risk of the property until settlement or until the buyer obtains possession of the property, whichever occurs first. It is recommended that the seller ensure that adequate insurance is in place up until that time.

We also recommend that that buyer consider obtaining their own insurance for the property commencing during the settlement period. Most insurance providers will provide complimentary coverage for the settlement period, and this will assist in the unlikely event that a risk eventuate where the seller does not have adequate coverage and there is still a desire for settlement to take place.