If you’ve ever applied for a home loan, then you’ll know how much paperwork is actually required. From providing evidence of income to a detailed list of your expenses – the process can feel endless.

But once you’re formally approved, the only thing left to do is meet the requirements of your loan, so that it can be advanced.

One of those requirements is proving to your bank or lender that you’ve adequately insured the property, and this is when you’ll need a certificate of currency. 

What is covered in a certificate of currency?

A certificate of currency — or certificate of home insurance — is a document issued by insurers, like Budget Direct, that confirms your insurance policy is effective and valid.

A certificate of currency includes:

Insured party details

The names and residential or investment property addresses of the insured party.

Policy details.

The policy number, policy type, and policy expiration date.

Period of coverage

The time and date of the commencement and expiration of your insurance contract.

Interested party or mortgagee details

The lender or bank’s name is mentioned as the interested party.

Sum insured

The maximum amount that the policy covers.

Premium paid

The amount of premium paid, the date paid, and the method of payment.

When do you need to provide a certificate of currency?

In most cases, you’ll need to provide a certificate of currency to your lender before the loan settles.

Lenders will then be listed as an interested party on the certificate, which protects them from any unexpected damage or loss to the property.

It’s worth noting that you generally won’t need a certificate while you are building a home — as this is covered by builder’s insurance — or if you’re purchasing a unit or apartment where the insurance is covered by strata.

Requesting a Certificate of Currency from Your Insurer

Before you request a certificate of currency make sure that your property is insured for at least the minimum period required by the lender. You can find this in the loan offer document or by calling your mortgage broker. And remember, your insurance policy must also start before the settlement date.

If you’re an existing customer with Budget Direct then you can easily download your certificate of currency when you access your Policy Manager online or contact us to ask us to email it to you.

Looking for home insurance at outstanding value? Get a quote today and receive 30%^ off your first year’s premium when you purchase a new combined Home and Contents Insurance policy online.