Insurance in particular has moved from being a box to tick before settlement to something buyers need to investigate much earlier. <\/p>\n
\u201cIf you\u2019re buying a property by auction, you really need to get your insurance ducks in a row before you go and bid,\u201d Foley says. <\/p>\n
\u201cIf there\u2019s a problem with getting the cover, you know, the hammer\u2019s fallen, you\u2019re obligated to buy, and you can\u2019t get the insurance, you won\u2019t be able to settle.\u201d <\/p>\n
Moisture risk is an area insurers scrutinise closely, but Foley says that scrutiny isn\u2019t limited to homes with cladding known to be prone to leaking. <\/p>\n
\u201cWhen you take out a boxed shower and you replace it with a tiled bathroom \u2026 then that must have council sign-off because the council needs to ensure that proper moisture membrane was put in.\u201d <\/p>\n
If the LIM shows no consent for that work, she says, buyers need to disclose it to their insurer. <\/p>\n
\u201cIf you have a leak in your bathroom and your insurer says, \u2018Please provide evidence that council consent was obtained\u2019, and you can\u2019t, then once again they may refuse to cover you for that type of event.\u201d <\/p>\n
Natural hazards are also becoming a much bigger part of due diligence, with LIM reports now carrying more information about risks including flooding, inundation, liquefaction, tsunami zones and wind. <\/p>\n
Foley says a natural hazard notice on the property\u2019s title is \u201ca big red flag\u201d, because both banks and insurers may require further investigation. <\/p>\n
Buyers should also be wary of relying on a building report supplied by the seller. <\/p>\n
\u201cIf you rely on a building report that\u2019s been provided by the seller and that building inspector has made an error in their building report, you have no right to sue that building inspector for that error,\u201d Foley says. <\/p>\n
While those extra checks can be expensive, she says cutting corners can prove far more costly. <\/p>\n
\u201cIt always surprises me when people are buying one of the most expensive assets they\u2019re probably ever going to buy, but they\u2019re quibbling on doing the right things to ensure they are protected.\u201d <\/p>\n
Watch or listen to the full episode of The Prosperity Project<\/a> for more.<\/p>\n The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and financial adviser.<\/p>\n Follow the show at iHeartRadio<\/a>, Apple Podcasts<\/a>, Spotify<\/a> or wherever you get your podcasts. New episodes are released every Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"Insurance in particular has moved from being a box to tick before settlement to something buyers need to…\n","protected":false},"author":2,"featured_media":586169,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[62641,682,27245,138,3237,2068,82716,14646,9349,288549,124119,5910,8455,10053,51928,17053,288548,9812,111,139,69,3263,814,20586,13673,1519,65259,1361,223,2563,61,8222,6436,102],"class_list":["post-586168","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-afford","tag-being","tag-beyond","tag-business","tag-buyers","tag-cant","tag-capable","tag-checking","tag-checks","tag-derailing","tag-diligence","tag-due","tag-getting","tag-house","tag-increasingly","tag-insurance","tag-naturalhazard","tag-needs","tag-new-zealand","tag-newzealand","tag-nz","tag-project","tag-property","tag-prosperity","tag-purchase","tag-risks","tag-skip","tag-that","tag-the","tag-title","tag-to","tag-warned","tag-well","tag-with"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/586168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=586168"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/586168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/586169"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=586168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=586168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=586168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}