35. Providing individual unit insurance information
When sharing a copy of the insurance policy for the unit being sold, it is essential to provide a comprehensive overview of the coverage. This includes detailing what specific risks are covered, any exclusions, policy limits, deductible amounts, and the term of the policy. Evidence of payment for the latest premium assures buyers that the policy is current and the property is adequately insured.
Here is why a detailed overview is essential:
| Specific risks covered | Clearly outline what specific risks are covered by the individual unit insurance policy. This could include coverage for structural damage, personal property, liability, and any additional protections. Buyers need to understand the extent of coverage to assess the property's resilience to various risks. |
| Exclusions | Detail any exclusions within the insurance policy. Buyers should be aware of situations or events that may not be covered. Knowing the limitations of coverage helps buyers make informed decisions about additional insurance needs or risk mitigation measures. |
| Policy limits | Specify the policy limits, indicating the maximum amount the insurance company will pay for covered claims. Understanding the limits helps buyers assess the financial protection provided by the insurance policy and whether it aligns with their expectations. |
| Deductible amount | Clearly state the deductible amounts applicable to the insurance policy. Buyers need to know the out-of-pocket expenses they would incur before the insurance coverage takes effect. Transparency about deductible amounts aids buyers in budgeting for potential costs. |
| Term of the policy | Provide information about the term of the insurance policy. Buyers should know the duration of coverage and when the policy is up for renewal. This helps them plan for future insurance-related considerations and understand the continuity of coverage. |
| Evidence of premium payment | Include evidence of payment for the latest premium to assure buyers that the insurance policy is current. This could be a receipt or confirmation of payment. Providing this documentation adds credibility and reinforces that the property is adequately insured. |
| Additional coverages or riders | If there are additional coverages or riders attached to the insurance policy, such as endorsements for specific valuables or enhanced protections, share details about these. Buyers may appreciate knowing about any customised coverages that enhance the overall protection of the unit. |
| Contact information for insurance provider | Include contact information for the insurance provider or agent handling the individual unit insurance. This allows buyers to seek clarification, ask questions, or obtain additional information directly from the insurance provider. |
| Emergency contact information | Provide emergency contact information related to the insurance policy. This could include contact details for filing claims or seeking assistance in case of emergencies. Buyers benefit from having readily available information for prompt action. |
| Legal compliance | Ensure that the individual unit insurance policy complies with legal requirements and regulations. Buyers need assurance that the policy meets the necessary standards and provides the expected level of protection in accordance with local laws. |
| Encourage buyer review | Encourage potential buyers to thoroughly review the insurance policy and seek professional advice if needed. Buyers should feel empowered to assess the coverage comprehensively and address any questions or concerns they may have. |
By offering a comprehensive overview of the individual unit insurance policy, including specific risks covered, exclusions, policy limits, deductible amounts, term of the policy, evidence of premium payment, additional coverages, contact information, emergency contact details, legal compliance, and encouraging buyer review, sellers contribute to a transparent and informed property sales process. This transparency builds trust and helps buyers make confident decisions about their investment in the unit.