This question is from Richard:
Do you know of any insurer that will provide insurance ‘from the fall of the hammer’ and prior to settlement in relation to a High Court Sale or Mortgagee Sale? The terms of these transactions usually pass all risks immediately to the purchaser prior to settlement with no promise of vacant possession. It appears that not many insurers will take on the risk.
Rene Swindley from Initio Insurance answers
Generally speaking, these transactions are deemed too risky for domestic insurer so they won’t take on cover from the fall of the hammer.
You’ll find the odd broker who can find a London-based underwriter who will insure from the fall of the hammer for a maximum of three months. You are looking at a cost of approximately $2,500.
After that, and when the purchaser has taken possession and assessed the condition of the property, a domestic insurer will come in and take over cover.
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