When Should a Buyer Arrange Building Insurance in Victoria?

Victorian buyers are commonly advised to arrange building insurance effective from the date the seller signs the contract, rather than waiting until settlement or moving day. The seller may retain insurance, but the buyer and lender need their own protection if fire, storm or other damage occurs before settlement.

Why insure before owning the title?

A binding contract creates a substantial financial interest in the property. If serious damage occurs before settlement, questions about the seller’s policy, repairs and contractual rights can become complex.

Consumer Affairs Victoria says lenders commonly recommend cover from the date the seller signs the contract to protect both the lender’s and buyer’s interests.

Check the contract and lender requirements

Risk allocation can be affected by the contract and circumstances. Buyers should ask their insurer for cover suitable for a property under contract and comply with any lender insurance condition.

Do this promptly after the Contract of Sale becomes binding. Do not wait until the loan documents arrive if the insurer can arrange cover earlier.

Apartments and owners corporation insurance

An owners corporation commonly insures the building and common property, but that policy may not cover the buyer’s contents, temporary accommodation, public liability, internal improvements or every lot-specific risk.

Obtain the owners corporation insurance details and ask an insurance adviser what additional cover is appropriate.

If damage occurs before settlement

Notify the insurer and conveyancer immediately. Preserve photographs, reports and communications. Do not make private repair arrangements with the seller without understanding the contract and insurer requirements.

The appropriate response depends on the damage, policy and contract; it is not safe to assume the sale automatically ends.

DY practical point

Use the correct property address, building type and effective date, and tell the insurer if the property is vacant, tenanted, under renovation or in a bushfire or flood-prone area. A cheap policy based on incorrect facts may not provide the expected protection.

Frequently asked questions

Should I wait until settlement to insure?

Usually no. Victorian buyers are commonly advised to arrange cover from the date the seller signs the contract.

Does owners corporation insurance cover everything?

No. It may not cover contents and various lot-specific risks. Obtain advice about additional cover.

What if the property is damaged before settlement?

Contact your insurer and conveyancer immediately. Your rights and obligations depend on the contract, damage and insurance arrangements.

Official references

Consumer Affairs Victoria — Before property settlement

Consumer Affairs Victoria — Disaster advice for property sales

This article provides general information about Victorian conveyancing as at 17 July 2026. It is not legal or financial advice. The correct approach depends on the contract, title, parties and circumstances of each transaction.