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A home insurance cover note was once used to provide people with temporary insurance, but they're not available anymore. As an alternative, insurers now offer cooling-off periods. This lets you cancel your policy before a certain date (usually 30 days) without being charged.
Compare policies and get cover for your house
During the cooling-off period, you can change any feature of the policy, or even withdraw from it completely if you need to – as long as you haven't made a claim.
What is a home insurance cover note?
A home insurance cover note is a type of temporary insurance that used to be offered when you applied for a home insurance policy.
They were designed to cover you until you were issued with a full policy. However, insurers don't offer them now. Instead, you generally get a cooling-off period when you take out a home insurance policy. This lets you leave free of charge if you change your mind about your policy and want it cancelled or altered.
How long will the cooling-off period last?
Most home insurance policies will give you a cooling-off period of 21 days. This gives you protection while you continue to sort out and finalise the legalities of your home purchase. Essentially, it gives you a little time to make sure that the policy you're getting is the right one for you.
It's worth mentioning that if you make a claim on the policy during the cooling-off period, you'll have to pay for the policy.
Provider
Cooling-off period
Policy wording
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21 days
If you change your mind within 21 days of buying your policy, you can cancel it and receive a full refund.
If you find that this policy doesn't cover what you need it to, and you haven't made a claim, you can receive a full refund if you cancel the policy within 21 days of either: the date we issue you a new policy or the date your policy renews.
Even after you decide to buy this insurance, you have 30 days from the date cover commences to change your mind and let us know that you want to cancel the policy. We will refund the premium you have paid less any government charges or taxes we are unable to recover, provided you have not made a claim under the policy.
If you decide that this policy is not for you and you have not made a claim, you may cancel this policy within 14 days of it starting (this also applies to each renewal). If you cancel within the cooling off period, we will refund any premiums you have paid for the policy less any government levies, taxes or duties that we cannot recover.
If you decide that this policy is not for you and you have not made a claim or an event has not occurred that could give rise to a claim on this policy, you may cancel this policy within 14 days of it starting (this also applies to each renewal). If you cancel within the cooling off period, we will refund any premiums you have paid for the policy less any government levies, taxes or duties that we cannot recover.
If you decide that this policy is not for you and you have not made a claim or an event has not occurred that could give rise to a claim on this policy, you may cancel this policy within 14 days of it starting (this also applies to each renewal). If you cancel within the cooling off period, we will refund any premiums you have paid for the policy less any government levies, taxes or duties that we cannot recover.
If you're not satisfied with your policy, you can cancel it within 21 days from the date the policy is issued by us and receive a full refund of any premium you've paid (as long as you haven't already made a claim).
If you find that this policy doesn't cover what you need it to, and you haven't made a claim, you can receive a full refund if you cancel the policy within 21 days of either: the date we issue you a new policy or the date your policy renews.
If you're not satisfied with your policy, you can cancel it within 21 days from the date the policy is issued by us and receive a full refund of any premium you've paid (as long as you haven't already made a claim).
The cooling off period is the first 20 calendar days from: the policy start date (if you change the start date the cooling off period applies from the original start date); or the renewal date.
Do I need to get home insurance before settlement?
While you aren't legally obliged to take out home and contents insurance before your settlement date, it's certainly a good idea to do so. Like a building insurance cover note, having a home insurance policy before settlement means you're not relying on the seller to have a policy, and if something does go wrong, you know it's there to protect you.
Even if the seller has home and contents insurance, it's more secure to not rely on their policy in the event of fire,flooding or vandalism. The last thing you want to deal with when buying a home is an expensive bill, or a delay in moving because the seller isn't sorting the damage quickly enough.
If you don't take out home insurance before settlement, there are two common things that can happen.
Scenario 1
If your soon-to-be home gets damaged before settlement, the contract to buy the property could be negated. This is because the seller has failed to keep the house in the conditions it set out. The result? They'll be obligated to fix it, otherwise the contract will fall through. If they don't have home insurance, and you want the house, it might be worth sorting it yourself.
Scenario 2
There's also a chance that your contract will be carried through – generally because the damage isn't considered bad enough that the seller is obligated to fix it – meaning that you will be contractually obliged to go through with the sale and you'll have to handle the cost of repairs yourself.
Can I get insurance if the home is damaged?
Yes. If the home you're buying has seen better days it's still possible to get cover for it. However, any damage that happens to your property as a result of pre-existing damage won't be covered. You will still be covered for unrelated events though.
Make sure you inform your insurer that the property is damaged when applying as you could risk voiding your insurance otherwise.
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Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
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Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
You don't need a home insurance cover note
You just need home insurance 🙌
While you're still working stuff out for your new home, take out a home insurance policy to give you peace of mind. You can still make changes or cancel the policy within the cooling-off period.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
Please note that cover notes are no longer offered in Australia. Please speak to your chosen insurer about getting home and contents insurance if you’re going on a holiday as they may offer a policy that will suit your needs with cooling off period which is usually for 21 days.
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What is the approx cost on insurance cover note of house value $840k over 2 days?
Hi Adrian,
Thank you for getting in touch with Finder.
Please note that cover notes are no longer offered in Australia. Please speak to your chosen insurer about getting home and contents insurance if you’re going on a holiday as they may offer a policy that will suit your needs with cooling off period which is usually for 21 days.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni