If you have just received approval for a home loan, you already have conquered your fair share of hurdles, and congratulations are in order. Your next step is to provide your lending institution with information that confirms your property is insured. You will do this with a Certificate of Currency which may also be called a Certificate of Insurance.

What is a Certificate of Currency?

A Certificate of Currency is the documentation your insurance company or insurance broker gives that confirms your home has insurance coverage. You should receive a copy once your policy has been defined and you have made a payment.

What Information Does the Certificate of Currency Insurance Contain?

Most Certificates of Currency contain standard information such as:

  • Name of the insured party
  • Address of the insured property
  • Insurance policy number and the date the policy expires
  • The period of protection, including the time and date of the commencement and the expiration of the insurance, should be clearly stated.
  • Interested party meaning the financial institution that is lending you the money for the purchase of your home
  • The maximum amount of coverage the policy provides
  • Premium paid, including the exact amount and method of payment

Insurance Coverage Information

Why Must I Provide a Certificate of Currency Insurance?

There are a few reasons you may need to provide your Certificate of Currency; these include:

  • Your lender must have proof that the property and the lender have insurance protection should the property sustain damage. This protects your lender from having a damaged property with no compensation.
  • A bank or financier may request one to confirm that the item they have lent money towards is insured so they can receive their payment in the event of a total loss. A lender will not advance a home loan without confirmation of coverage.
  • A contractor may request one confirming public liability cover from his subcontractor to ensure that if the subcontractor causes property damage or in the event of litigation against the contractor, they will be able to counterclaim against the subcontractor.

What Are the Reasons My Lender Would Not Need a Certificate of Currency?

The three most common reasons you will not need to provide your Certificate of Currency Insurance are:

  • If you are purchasing vacant land, there is no house or other building to insure.
  • If you are building a home, a builder’s insurance policy should cover against losses until your home is complete. The bank will ask for the builder’s insurance before it releases the first payment to the builder.
  • Units and townhouses are strata title. Because the strata corporation will insure the building for you, the lender will not usually require evidence of the insurance.

Financial Adviser

Can My Lender Ask for My Strata Insurance?

Typically, your lending institution will not need your strata insurance because the lender does not need to be noted as a mortgagee on the policy. The number of units in a given building makes noting lenders as interested parties impractical.
However, if your lender does request proof of your strata insurance, your strata manager can easily provide the necessary information for your lender.

At All Trades Cover, we can send you a Certificate of Insurance in minutes. All you need to do is contact us for your public liability quote and purchase your policy online. Our team will email the Certificate of Insurance to you. If you have any questions or concerns, do not hesitate to reach out to discuss your Work Cover Certificate of Currency or any other insurance issues. We are happy to help you protect yourself and your business.

**Please Note** The material presented here is for informational use and does not constitute insurance advice. It should not take the place of an individual consultation with an insurance professional.

John Elliott

John Elliott

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An industry veteran with a vision to revolutionise insurance for tradespeople, John Elliott founded All Trades Cover with a commitment to make insurance easy, efficient, and affordable for tradies across Australia.

With 2 decades of experience and thousands of insured clients nationwide, John’s vision has become a reality. All Trades Cover is now a trusted partner for tradies, offering top-tier coverage at competitive prices. But it’s not just about cost savings.

John’s innovative approach focuses on simplicity and speed without compromisingon quality.

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