Do I need to insure a home from the day I buy it or from the day I take possession?
A purchaser should take out their own insurance from the day of sale, and not wait until settlement to do so.
It’s true that the vendor is likely to have the property insured and that the vendor’s insurance will benefit the purchaser, but what if the vendor has no insurance, or their insurance is invalidated for some reason?
Consider the situation if a fire burns out the kitchen. The purchaser can cancel the sale, but what if the purchaser doesn’t want to cancel, and would prefer to have the vendor repair the damage? If the vendor doesn’t have insurance and doesn’t have the funds to do the repairs the purchaser may have to accept the property as-is and cover the cost of repairs.
By taking out insurance from the sale of sale the purchaser has peace of mind knowing that if the vendor has no insurance or inadequate insurance they are still covered.