When purchasing a home in Queensland, securing the right house insurance is an important yet often overlooked step in the conveyancing process. It’s not just a formality—it’s a key factor in protecting your investment and ensuring peace of mind. Many buyers may not realise the importance of having insurance in place immediately after signing the contract. Here's everything you need to know about house insurance in Queensland and how it plays a crucial role in your property purchase journey in 2025.
Once you’ve signed the contract to buy a property in Queensland, you are contractually bound to proceed with the purchase. However the standard contract that the property is at your risk one business day after the seller signs the contract.
If any damage occurs—due to natural disasters including flood, fire, or storm damage, accidents, or vandalism—you could face significant financial loss as you will be responsible for this loss or damage. Without adequate house insurance, you will have to cover these costs yourself.
Insurance Responsibilities in the Contract: Most standard property contracts in Queensland, especially those involving house purchases, outline that the buyer takes on the responsibility for the property one business day after the contract is signed. This means that if damage occurs before settlement, the buyer may be responsible for repairs. Therefore, having house insurance is crucial.
Building Insurance: This covers the home’s physical structure from damage caused by events like flood, fires, cyclones and storms, or vandalism. It’s the most common and essential form of coverage for homeowners.
Contents Insurance: While not legally required, contents insurance is a wise addition, especially if you plan on moving in before settlement. It covers personal belongings inside the property.
Flood Insurance: Queensland is prone to flooding and storms, so depending on the location of your property, you may need additional flood insurance. Confirm with your insurer whether flood cover is part of your policy or is in fact available.
What Happens If You Don’t Have Insurance?
Failing to secure insurance could expose you to significant financial risks. If damage occurs and you don't have coverage, you may be required to cover the costs yourself. Additionally, even though the seller might be responsible for repairs in some cases, this is not guaranteed, and any issues could delay settlement or cause complications in the conveyancing process.
Before purchasing a home in Queensland in 2025, it's crucial to check the Queensland flood maps to assess the flood risk of the property you're considering. Flooding is a common concern in many areas across the state, and understanding your property's exposure to potential flooding can help you make informed decisions during the buying process. Not only does this affect the value and livability of your new home, but it also plays a key role in securing the right insurance coverage. Many insurers will require flood zone information before offering a policy, and failing to account for flood risks could result in higher premiums or even difficulty obtaining coverage. As part of your due diligence during the conveyancing process in Queensland, checking the flood maps ensures you're fully informed about the risks, enabling you to protect your investment and safeguard your property.
Buying a property in a flood zone in Queensland requires careful consideration, as it can affect both your investment and the long-term security of your home. Here are some key points to understand before making a purchase in a flood-prone area:
Flood Risk Assessment: Before buying, check the Queensland flood maps to assess the property's flood risk. This will show whether the property is in a high-risk flood zone and help you determine the likelihood of flooding in the area. You can access these maps through local government websites or request information from your conveyancer.
Insurance Considerations: Properties in flood zones may require specific flood insurance coverage, which can increase the cost of your home insurance. Some standard policies may not cover flood damage, so it’s important to confirm with your insurer whether flood cover is included and to what extent. Flood insurance can be more expensive in high-risk areas, so factor this into your budget.
Property Value and Resale Potential: Homes in flood zones may have lower resale values due to the increased risk of future flooding. Before purchasing, research the property’s market history and evaluate whether the risk could impact its long-term value. You may also face difficulties selling the property in the future if buyers are concerned about flood risks.
Building and Renovation Restrictions: Properties in flood-prone areas often face stricter building regulations. These might include restrictions on renovations or requirements for elevated foundations to minimise flood damage. Check with local authorities for any specific regulations that apply to properties in flood zones.
Flood Mitigation and Preparedness: If you decide to buy in a flood zone, it’s essential to understand the flood mitigation measures in place, such as flood levees, drainage systems, or flood warning systems. Additionally, consider implementing your own flood preparedness plan, including flood barriers or moving valuable items to higher ground during heavy rain.
Financing: Some lenders may have specific requirements for properties in flood zones, such as higher deposit amounts or flood insurance policies. It’s important to discuss these considerations with your bank or mortgage broker before
While buying a home in a flood zone in Queensland can offer great value, it requires thorough research, understanding of the associated risks, and careful financial planning. By being proactive about insurance, regulations, and flood preparedness, you can make an informed decision and protect your investment.
Q1: Is house insurance mandatory when buying property in Queensland?
Yes. One business day after the seller signs the contract, the buyer is responsible for ensuring the property is adequately insured before settlement.
Q2: Can I get insurance for a property before settlement?
Yes, house insurance can and should be arranged immediately after the seller signs the contract.
Q3: Do I need flood insurance in Queensland?
Due to Queensland’s vulnerability to flooding, it’s highly recommended to consider flood insurance, especially if your property is located in a flood-prone area. Be sure to discuss this option with your insurer.
In Queensland, house insurance is more than just a precaution; it’s an essential part of your property purchase process. By securing the right coverage from the moment you sign the contract, you can protect your home against unforeseen events and avoid potential financial burdens.
If you're navigating the conveyancing process in Queensland and need help with insurance or any other aspect, our experienced conveyancing team is here to guide you. Contact River City Conveyancing today to ensure a smooth, secure, and well-protected property purchase.