Media Advisory - Property Insurance Advice for Wellington
You can read more about this in NZ Adviser Online
Following recent uncertainty around property insurance in Wellington, Tall Poppy Real Estate has released the following advice to people buying or selling property in the Wellington Region.
David Graves, Founder and Director of Tall Poppy, advises people to consider the following if currently buying or selling:
- If you are a buyer yet to purchase; start looking at insurance options now and ensure you have an insurance clause in any Sales and Purchase Agreement you sign. Seek legal advice before signing an agreement.
- If you are a seller; ensure any agreement you sign is subject to the buyer obtaining appropriate insurance cover. If you’re concerned about the insurance position of your buyer, then double check with your lawyer or salesperson before signing a Sales and Purchase Agreement.
- If you are a seller and have accepted an offer, unconditional or otherwise, double check the insurance position with your lawyer or salesperson promptly.
- If you are a buyer and have made an offer that’s gone unconditional and you don’t have insurance, consult your lawyer and salesperson as soon as possible.
David Graves says while the Earthquake Commission (EQC) has a role to play, private insurance is necessary.
“EQC’s exposure on buildings is limited to $100,000, so private insurance is required (land exposure is uncapped). If a buyer can’t obtain appropriate insurance cover it’s unlikely they will be able to secure mortgage finance - and a Sales and Purchase Agreement may not be finalised.
“Working with an insurance broker can help you navigate the current insurance landscape, and also check in with your bank to see if any options are available. If you’re uncertain about anything to do with insurance, you should contact your lawyer or salesperson to work through any potential issues,” says David Graves.