To fulfill ANZ's insurance requirements for your apartment, obtain a confirmation letter from the Body Corporate specifying coverage commencement on the settlement day. Communicate directly with ANZ, involve your lawyer for legal compliance, and secure a confirmation from the insurance provider for added assurance.
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“Hi there, we are trying to purchase an apartment in Auckland. To go unconditional on our contract, we need to prove to the bank we have insurance lined up for the start of move-in day. The thing is the insurance for our apartment is covered fully in our Body Corp fees. The bank wants some proof that the insurance will start on settlement day. I have explained that our insurance is covered by the body crop fees and provided an insurance certificate for the building. Still, they want documents with my and my partner’s names on them, with ANZ as an interested party. I have contacted my lawyer, but I thought I would see if anyone here has any ideas.”
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Body Corporate Clarification:
Contact your Body Corporate to obtain a detailed document confirming the insurance coverage for your apartment, explicitly stating that it will commence on the settlement day. Request a letter or statement that includes both your and your partner’s names, with ANZ specified as an interested party. This document should serve as proof of insurance coverage and can address the bank’s requirement for a record with all relevant parties involved.
Legal Assistance:
Continue working closely with your lawyer, leveraging their property and finance law expertise. If necessary, your lawyer can draft a legal document that satisfies the bank’s conditions and confirms the insurance coverage through the Body Corporate fees. They can act as a liaison between the involved parties, ensuring effective communication and addressing any legal nuances that may arise during the process.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
