Buying or selling a home? What insurance information should you check first?

For many buyers, insurance is treated as something to organise immediately before settlement.

In reality, it's often worth thinking about insurance much earlier.

A property may appear ideal on the surface but have characteristics that affect insurance availability, policy conditions, excesses or long-term affordability. Understanding these factors early can help avoid surprises and support more informed decision-making.

The goal isn't necessarily to avoid properties with risk. Instead, it's about understanding those risks and how they may affect future ownership costs.

One of the first areas worth investigating is a property's exposure to natural hazards.

Depending on the location, these may include:

• Flood risk
• Coastal inundation
• Landslip exposure
• Earthquake-related hazards
• Severe weather vulnerability

Useful sources of information may include:

• LIM reports
• Council records
• Property files
• Hazard maps
• Professional advice

As insurers increasingly use property-level risk information, understanding a property's hazard profile has become an important part of the buying process.

Where information is available, it can also be helpful to understand whether the property has experienced significant damage in the past.

Questions worth exploring include:

• Has the property experienced flooding or storm damage?
• Have major repairs been undertaken?
• Are there signs of recurring maintenance issues?
• Have retaining walls or drainage systems required remediation?

Previous issues do not automatically make a property unsuitable. However, they can provide useful context when evaluating potential future risks and maintenance requirements.

One of the most practical steps buyers can take is speaking with their broker early in the process.

This provides an opportunity to:

• Confirm insurance is available
• Understand any special conditions
• Review excess levels
• Identify potential concerns before settlement
• Avoid unexpected delays

Leaving insurance arrangements until the final stages of a transaction can create unnecessary stress, particularly if additional information is required by an insurer.

It is also important to accurately disclose how the property will be occupied, including whether it will be owner-occupied, tenanted, unoccupied, rented to boarders or used for short-term accommodation (for example, Airbnb).

Different occupancy arrangements can affect an insurer's acceptance criteria and policy conditions. Failure to disclose the correct occupancy may result in:

• A higher excess being applied
• Additional terms or conditions
• Restrictions in cover
• The insurer declining to offer or continue cover

Early engagement can make the process much smoother.

Insurance considerations aren't only relevant for buyers.

Sellers can often make a transaction easier by ensuring relevant information is readily available.

Helpful information may include:

• Records of renovations and improvements
• Documentation relating to significant repairs
• Information about drainage or retaining wall work
• Building consents and approvals where relevant
• Maintenance records

Providing clear information helps buyers better understand the property and can support a smoother transaction.

It is also important to maintain appropriate insurance cover right up until settlement occurs.

Before committing to a purchase, consider asking:

• Can the property be insured on acceptable terms?
• Are there known natural hazards affecting the property?
• Are there any special policy conditions or higher excesses?
• Has the property experienced significant damage in the past?
• What information should I understand before settlement?

These questions can help identify potential issues early and provide greater confidence during the purchasing process.

As insurers continue to improve their understanding of property-level risk, insurance considerations are likely to become an increasingly important part of property transactions.

For buyers, that means taking a broader view than simply purchase price and location. Understanding insurance implications before making a commitment can help reduce surprises and support better long-term decision-making.

The key takeaway is simple: insurance should be part of your property due diligence, not an afterthought.