Do I need home insurance before settlement?
Buying a property is a process with many steps, so you’d be forgiven if insurance isn’t the first thing on your mind. But your new home will probably be your biggest asset, so it’s important to know that it’s covered. Knowing when home insurance becomes your responsibility – rather than the vendor’s – might save you a lot of trouble and stress down the track.
Why do I need home insurance?
Home insurance can help cover the cost of repairs or rebuilding if something bad happens to your house that causes damage. Depending on your type and level of cover, coverage can include weather events like storms and bushfires, or unfortunate incidents like break-ins or vandalism.
You may be required to have home insurance as a condition of your mortgage, so check with your lender.
What is the settlement process?
Settlement is usually when the final details of a property sale are sorted out and the sale is completed. It occurs on a date which is specified in the sale contract, and agreed to by the buyer and the vendor when that contract is signed.
In the time between signing the contract and the settlement date, the buyer has an opportunity to arrange things like finance, pest inspection, necessary repairs or improvements to the property, and insurance.
Who’s responsible for home insurance before and after settlement?
There are regulations that determine when a buyer becomes liable for damage to the property. These vary between states and territories. It’s best to seek advice from your agent, conveyancer, or relevant state real estate governing body. In some cases, you may be legally responsible for any damage before settlement date. In other cases, you may be able to wait until the settlement date to buy your policy.
What insurance do I need when buying a house?
AAMI Home Building and Contents Insurance
AAMI Home Building Insurance covers the building itself – that’s your walls, ceiling, roof and so on. AAMI Contents Insurance covers the items within your home – your couch, computer, coffee machine, etc.
If you are an owner-occupier of a free-standing home, you may need both. If you own a unit or apartment, you may only need contents insurance.
Explore AAMI Home and Contents Insurance
Optional covers for an additional premium
Accidental Damage at Home
If you accidentally drop, knock, spill or otherwise cause damage at home, this optional cover can cover the costs associated with a repair or replacement. It can apply to your house itself, your contents, or both, depending on your policy. Exclusions apply.
Learn more about Accidental Damage at Home
Extra Cover Portable Valuables
AAMI will cover accidental loss or damage to your portable items at or away from the insured address during the period of insurance and anywhere in Australia or New Zealand.
You can cover your handbags, wallets and a range of personal items for accidental loss or damage at or away from your home.
However, certain items like your laptop or mobile phone will need to be specifically insured under your Extra Cover Portable Valuables cover.
Know that adding cover for portable valuables will increase your premium.
Explore Extra Cover Portable Valuables
Complete Replacement Cover®
If you needed to rebuild your home after an insured event and found your sum insured wasn’t enough to restore it to its former glory, you’d be disappointed. This is where AAMI's Complete Replacement Cover® can help.
Learn more about Complete Replacement Cover®
AAMI Home Assist
If you’re searching for a trusty tradie to help during a home emergency, AAMI Home Assist may be for you. With this optional cover, if an unforeseen emergency – like a blocked toilet – occurs at the insured property, we will dispatch a selected trade service to provide assistance for up to two hours. Tradies available are plumbers, electricians, locksmiths and carpenters.
This cover comes with terms and conditions. Read them in the relevant Product Disclosure Statement (PDS).
Read more:
- Your comprehensive home maintenance checklist
- How much should you insure your house for?
- How to make a home insurance claim
Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as AAMI. Read the relevant Product Disclosure Statement before purchasing this insurance. The Target Market Determination is also available. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.