When do I need house insurance?

In most cases, before your loan is approved, and definitely before settlement day.

When you’re buying your first home, insurance can feel like just another admin task. But it’s one of the most time-sensitive steps in the process. Most banks won’t release funds for your mortgage until they’ve seen proof your new place is insured – and that means sorting cover before settlement day.

Here’s when you’ll need to act, depending on how you’re buying:

🏠 Buying at auction?

You’ll need to get insurance sorted before you bid. That means:

• Making sure the house is insurable (some homes aren’t — especially if they’ve had past damage or structural issues)
  
• Getting a Letter of Intent from your insurance provider to confirm you can get cover if you win

Pro tip: If you win the auction but can’t get insurance, you’re still locked into the purchase. Don’t risk it.

 

💼 Making a conditional offer?

Most finance clauses require proof of insurance before the bank confirms your loan. That usually means:

• Providing a Letter of Intent (shows the house is insurable)
  
• Or a Certificate of Insurance (shows active cover will be in place on settlement)

📌 If you don’t provide this, your finance might fall through.

 

🗓 What about on settlement day?

Even if your offer is unconditional, your house still needs to be insured from the date of settlement, that’s when legal ownership transfers to you.

• Set your policy start date to match your settlement date
  
• Once you’ve purchased cover, your Certificate of Insurance is emailed instantly

📌 Don’t wait until the day before — with initio, you can set your policy up to start up to 30 days in advance.

 

What’s the easiest way to show your bank you’re sorted?

With initio, you’ve got two options:

📝 Letter of Intent  –  For when you haven’t confirmed the purchase, but need to show the home can be insured.

📄 Certificate of Insurance – For when you’re ready to activate the policy. It confirms the house is fully covered from your chosen date.

Can we insure the home before settlement for early possession?

Initio is unable to provide insurance cover for a home before the settlement date, even if you have early possession. Insurance can only start from the day you become the legal owner, which is the settlement date. If you need to arrange cover, you can set the policy start date as your settlement date when purchasing a new policy. 

Other times you’ll need to arrange insurance:

🛠 Planning renovations before you move in?

If you’re doing cosmetic renovations (carpet & flooring, painting, removing non-load bearing walls), you may need a House Flip policy. Learn more.

🚚 Moving house?

Need a new policy for your new address? Make sure it’s in place from takeover day to moving day to avoid any gaps in cover. Learn more

No waiting. No phone calls.

Get a quote in seconds, see if the property is insurable, and download your documents instantly.

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Buy House Insurance

For more details, view insurance made easy for first home buyers (e-book).

You might also be interested in:

• • House insurance with initio
  • Need to confirm you can obtain insurance before making an offer?
  • How do I get a certificate of insurance?
  • Moving house? Make sure you’re covered
  • What work is covered by a house flip policy?