Did you know that your ability to get insurance impacts your ability to borrow?
Although a property may look great on the surface, there can be a number of reasons where it is usually uninsurable and this means that you cannot get finance from a bank.
Reasons include:
Unconsented work
Older homes with wiring that needs to be tested
Leaky homes
Properties in flood zones
Coastal or cliff-top properties
The home has been subject to an Earthquake Commission (EQC) claim
We sometimes come across situations where the vendor takes the house to auction, not realising the banks require full insurance to be available with no exclusions.
In these situations we work closely with our team of insurance advisers to get the desired outcome and review key documents where required.
We have also encountered situations where buyers have either bid, or agreed to purchase without realising they can’t insure the property.
With the recent cyclones and new building codes and rise in build costs it is also important to keep an eye on the estimated build replacement costs and this can be done using the Cordell calculators on insurance websites.
Please be mindful of insurance and talk to us early on if there are some interesting issues or potential exclusions with the property you like.
