Once you have building insurance in place, ask your insurer to provide you with a building insurance certificate of currency. You will need to send this certificate of currency back to your lender, together with your completed mortgage offer documents.
You will be required by the lender to insure the building value of your property. The actual amount that will be required for insurance is usually determined by the valuation. The value is based on the replacement cost of your house including demolition and removal of debris. Within the lender’s Loan Letter of Offer there will be details of the certificate of currency requirements, including noting the lender as an interested party.
Ensure that the certificate of currency states a policy expiry date – even if the payments are by instalments, the policy may continue past the latest instalment paid.
Talk to your conveyancer or solicitor to discuss whether you take out insurance cover once your purchase contract is unconditional, as you may have an insurance interest in the property at this point.
Property in a Body Corporate
The Mortgagor (Lender) will need to be noted as an interested party on your policy and will need a copy of the Certificate of Currency. Within the lender’s Loan Letter of Offer there will be details of the certificate of currency requirements, including noting the lender as an interested party. You can contact your body corporate to obtain one of these, once you receive the Letter of Offer documents.
Building insurance option
I have access to a special offer from Allianz who can offer free building insurance for up to 90 days.
To obtain a quote from Allianz, call 1300 858 642, mention that you were referred to Allianz by me and quote my Broker SPID – 22166. For example:
“I have been referred to Allianz by my mortgage broker, Michele Mansfield from EquityVision. Her referral code is 22166. I am interested in receiving a quotation for Building Insurance”
If you decide to proceed with this insurance, I would receive commission from Allianz of 8.66% (including GST) of the insurance premium amount.
Allianz could also provide quotes for the following insurances:
Provides coverage for contents lost through burglary, breakages etc
✓Landlord Protection Insurance
Provides coverage for any damages caused during the tenancy of an investment property