If you're moving into a strata property, remember the body corporate's insurance covers the building only, not your own belongings — you still need your own contents cover. Set your sum insured based on rebuild cost, not purchase price, and confirm cover starts exactly on settlement or move-in day, with no gap between settlement, move-in, and when you actually start living there.
How to do it
- If you're buying into a strata scheme, check exactly what the body corporate's policy covers before assuming your own contents needs are lighter than they are — strata insurance typically stops at the building's fixtures and excludes carpets, curtains, and anything not wired in.
- Work out your sum insured from rebuild cost, not purchase price or market value — these can be very different figures, especially in a fast-moving property market.
- Confirm your cover starts exactly on settlement or move-in day, and check there's no gap between settlement, move-in, and when you actually start living there — any gap is a period you could be genuinely uninsured.
- If you're in a bushfire- or flood-exposed area, get a quote before committing to the property, not after — pricing (and sometimes whether cover is offered at all) can vary a lot by address.
- Get quotes from more than one insurer rather than defaulting to whoever the previous owner or agent suggests — premiums for a similar property can vary meaningfully.
Renting? You still need your own cover
Your landlord's insurance is for their building, not your belongings. Moneysmart describes renter's insurance as contents insurance by another name, usually with more exclusions and limits than a standard contents policy, so read what's excluded before you buy. See Moneysmart: contents insurance.
Working out how much cover you need
- List what you own, room by room, with what each item would cost to replace today, and film each room as a record you can show an insurer later.
- Use a calculator rather than a guess. Moneysmart points to the Insurance Council of Australia's contents calculator as a better estimate than a rough figure. See Moneysmart: underinsurance.
- Check whether you're covered while you move. Some contents policies cover belongings when you move house, with limits, so read the transit conditions before moving day. If yours doesn't, ask your interstate removalist or local mover what cover they carry.
- Review the policy once you've moved in, and again each year or after a big purchase, so the sum insured keeps up with what you own.
If you're still looking for somewhere to live, our task on finding a place to rent or buy covers the steps before this one.
Common mistakes
- Assuming strata insurance covers your own belongings inside the unit — it doesn't, ever.
- Under-insuring the building by using purchase price instead of rebuild cost.
- Not checking bushfire or flood risk pricing until after settling on a property in an exposed area.
Frequently asked questions
- What happens if I don't have insurance by settlement day?
- Most lenders require proof of insurance before releasing funds at settlement, so a gap isn't just a personal risk — it can delay settlement itself.
- Can I insure a home before I've settled?
- Yes — insurers can generally set a policy to start from your settlement date, so arrange cover ahead of time rather than waiting until you've got the keys.
- Does my contents insurance cover my things in the removalist's truck?
- Some contents policies cover belongings when you move house, usually with limits. Check your policy's transit conditions before moving day, and if it doesn't cover you, ask your removalist what cover they carry.