Do I need to insure my new house before settlement?
Buying a new house is an exciting time, but it also comes with a few new responsibilities. One of these is making sure you have home insurance in place. You may have a few questions regarding this, one of which being ‘do I need to insure a house before settlement’?
Do I need to insure a house before settlement?
The answer to this question depends on the state or territory in which the property is located. It may also depend on the specific contract that has been drawn up, so even if you know the laws in your property’s location, it is important to carefully read the contract to ensure you are aware of any amendments. While some people feel more comfortable insuring the home from the moment the contract is signed, this may not be required for your protection in some states.
The following are the current laws in each state and territory regarding property liability. When purchasing a property, it can be a good idea to familiarise yourself with the laws on new house insurance in the relevant state/territory.
South Australia
As soon as contracts are exchanged, the buyer is responsible for damage to the property.
Victoria
On settlement, the buyer is responsible for any damage to the property.
Queensland
From 5pm the next business day following the contract date, the buyer is responsible for any damage to the property.
Australian Capital Territory
As soon as contracts are exchanged, the buyer is responsible for damage to the property.
Western Australia
The date a buyer is responsible for damage to a property is either the date the purchase price is paid in full or the date the buyer is given possession of or is entitled to the property (whichever date comes first).
New South Wales
On settlement, the buyer is responsible for any damage to the property.
Tasmania
As soon as contracts are exchanged, the buyer is responsible for any damage to the property.
Northern Territory
The date a buyer is responsible for damage to a property is either the date the purchase price is paid in full or the date the buyer is given possession of or is entitled to the property (whichever date comes first).
Buying house insurance before settlement isn’t needed in all states and territories. However, in some places, you may be liable for any damage that occurs even before the settlement date. As such, it is important to familiarise yourself with the relevant laws in your potential property’s state/territory before you sign a contract.
Home insurance is an important element of homeownership. Australia Post has a range of Home Insurance options for different situations and needs. We can also provide contents insurance for a range of items within your new home.
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The content of this article is provided for general information purposes only and is not legal advice. Specialist legal advice should be sought about your specific circumstances.
Australia Post home and motor insurance is issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (QBE). Australian Postal Corporation (ABN 28 864 970 579, AR No: 338646) is an authorised representative of Australia Post Services Pty Limited (ABN 67 002 599 340, AFSL 457551) which is acting (under its own AFSL) on behalf of QBE. Any advice provided is general only and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. To decide if this product is right for you, please read the relevant Combined Financial Services Guide and Product Disclosure Statement. Any reference to value and competitiveness refers to an average market segment and may not include your specific circumstances.
