Should you get home insurance at your new address?
Should you insure your new home before settlement? Learn when to arrange building insurance, lender requirements and how to transfer or compare cover in Australia.
Updated on February 16, 2026
3 min read
Table of Contents
Home insurance is not legally required in Australia. However, if you are buying a property, it is practically essential.
Your home is likely your largest financial asset. Once contracts are signed, you may carry financial risk even before you move in. Insurance provides protection and peace of mind during that period.
If you are purchasing with a mortgage, your lender will almost always require building insurance before the loan is formally approved and settlement proceeds.
What happens if you’re selling your house and buying another?
If you are selling one property and buying another at the same time, timing matters.
Your lawyer or conveyancer will generally recommend that you:
- Keep your current home and contents insured right up until settlement day. Settlement commonly occurs 30 to 90 days after contracts are signed, although this can vary.
- Arrange building insurance for your new property from the date contracts are exchanged, not from settlement day.
This overlap ensures you are protected during the transition. Cancelling your existing cover too early can expose you to financial risk if something happens before settlement is finalised.
Do you need to insure your new home before settlement?
The answer depends on where the property is located.
In some Australian states and territories, the buyer carries the risk from the date contracts are exchanged. In others, the seller retains the risk until settlement.
Because laws vary, always confirm with your conveyancer or solicitor. Even in states where the seller technically carries the risk until settlement, many buyers still choose to insure from exchange for added protection.
If you are borrowing, your lender will typically require evidence of building insurance before settlement. This is a condition of most mortgage contracts.
How do you transfer existing home insurance to your new home?
If you already have home and contents insurance, transferring or updating your policy is usually straightforward.
Contact your insurer before moving and advise them of:
- Your new address
- The building type and construction
- Security features
- Whether it will be owner occupied or rented out
Your premium may increase or decrease depending on location, rebuilding cost and risk factors such as flood or bushfire exposure.
Avoid assuming your old level of cover is appropriate for the new property. Rebuilding costs have risen in recent years due to labour and material price increases, so make sure the insured amount reflects current replacement value.
Your insurer can provide an updated certificate of currency, which your lender may require before settlement.
Shop around
Moving house is an ideal time to review your insurance.
Premiums vary significantly between insurers based on risk modelling, excess levels and policy features. The cheapest policy may not provide the cover you need.
When comparing policies, check:
- Sum insured
- Excess amounts
- Flood and storm cover
- Accidental damage options
- Temporary accommodation cover
Always read the Product Disclosure Statement and Financial Services Guide before purchasing or changing policies. If you are unsure, speak directly with the insurer to clarify inclusions and exclusions.