Home insurance certificate of currency
Expert tips for home insurance certificates of currency
Compare the Market’s home and contents insurance expert, Adrian Taylor, has some tips regarding certificates of currency for property-owners.
Adrian Taylor
Executive General Manager – General Insurance
Make sure your insurance dates line up
On settlement day, two of the things a lender will look for on your home insurance certificate of currency are the policy’s start date and how long the period of insurance is. So, make sure you take out your home insurance policy well before settlement day.
Be proactive where possible
The sooner you get your home insurance policy and your certificate of currency, the better. There’s already going to be enough stress and documentation flying around in the lead-up to settlement day – don’t make it worse than it has to be! To make the settlement process simpler and to protect your investment from an insurable loss, you’ll typically want to insure your new property as soon as you pay your deposit.
If you haven’t found a policy yet, compare your options!
If you’re gearing up to buy a new home but haven’t found a home insurance policy yet, you can compare your options today with Compare the Market! Our online home insurance comparison service makes comparing quick and easy, and you can apply for a policy online with us as well.
Be sure to read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) of any policy you’re looking at before applying to understand what it covers and who it might be appropriate for.
What you need to know about certificates of currency
What is a certificate of currency?
A home insurance certificate of currency is a document provided by your home and contents insurance provider which confirms the details of the insured property and that the insurance policy is current. Your home insurance certificate of currency will include policy details including:
- Policy details like the policy number
- The maximum amount you’re insured for
- The policy’s start date and expiration date
- The premium being paid by the insured party (that’s you), the date(s) of payment and the method of payment
Home insurance isn’t the only kind of insurance product you can get a certificate of currency for, but if you’re buying a property, you’ll need a home insurance certificate of currency specifically.
When do I need to provide a home insurance certificate of currency?
If you’re buying a property using a home loan, you’ll be required to provide a home insurance certificate of currency before the loan’s settlement date. At this point, the lender giving you the home loan will be named as an interested party on the certificate.
The lender will want to be listed as an interested party in case the insured building is destroyed by fire or flood or suffers significant accidental damage, as part or all of the insurance payout might need to go to the lender to satisfy the outstanding loan amount.
You won’t need to provide a certificate of currency if you’re building a home, as the build will be covered by builder’s insurance. Additionally, you won’t need an extra certificate of currency if you’re purchasing an apartment or townhouse, as the building will typically be covered by strata insurance.
How do I get a certificate of currency?
Depending on the insurance company in question, you may be able to retrieve a certificate of currency for yourself using their online self-service system. If not, you should be able to contact your insurer by phone or email to request a certificate of currency.
How much does a certificate of currency cost?
Whether you ask your insurance provider to send you a home insurance certificate of currency or you can retrieve one for yourself online, you typically won’t have to pay anything in order to get a home insurance certificate of currency.
Home insurance certificates of currency versus certificates of insurance
A certificate of currency and a certificate of insurance are just different names for the same thing. Both are home insurance policy documents that list basic information about the relevant policy, including its expiry date, maximum amount insured and more.
If your lender requires you to provide a home insurance certificate of currency, they may refer to it either as such or as a certificate of insurance.
Meet our home and contents insurance expert, Adrian Taylor
As the Executive General Manager of General Insurance at Compare the Market, Adrian Taylor works to make it easier for homeowners, renters and landlords to protect their home and contents. He believes it’s important for all residents (whether they rent, own or lease) to have adequate financial cover for their property and belongings in case the worse should happen.