General information only
This guide explains what published policy wordings say and what Australian law requires. It is general information, not advice, and it doesn’t consider your objectives, financial situation or needs. Policies differ, and wordings change: the PDS, policy wording and schedule for your own cover are the documents that count. The insurers quoted here are examples we could read in full; they are not necessarily on our panel.
The short version
- A certificate of currency confirms a policy is current on the day it is issued. It comes from the insurer, not from you.
- For a home, the usual reader is your lender: most want one before they release the loan at settlement, with the lender named on the building cover.
- For a business, the usual readers are a landlord, a council, a venue or a head contractor, and the cover they ask about is most often public liability at $10 million or $20 million.
- It is a snapshot. It doesn’t change your cover, and a policy can be cancelled after a certificate is issued.
- A quote, an invoice or a receipt is not a certificate of currency.
What is a certificate of currency?
A certificate of currency (often shortened to CoC) is a short document issued by an insurer confirming that a policy is current: in force, with the premium paid, on the date the certificate was issued. That is all “currency” means here. It is not about money.
It exists because the person who needs to know you are insured rarely wants to read your policy. A bank, a landlord or a builder wants one page that answers four questions: who is insured, by whom, for what, and until when. The certificate answers them, and the policy number lets them check it with the insurer if they want to.
What a certificate of currency shows
Layouts differ between insurers, but a certificate commonly carries the details below. If the person asking needs something specific, such as their own name noted on the policy, check it is there before you send it.
| On the certificate | What it tells the reader |
|---|---|
| The insured | The person or business the policy covers, exactly as named on the policy (a company, a trust, a couple) |
| The insurer | Who issued the policy and stands behind it |
| Policy number | So the person reading it can check it with the insurer |
| Type of cover | For example public liability, or home building |
| Limit or sum insured | Such as $20 million public liability, or the building sum insured |
| Period of insurance | The start and expiry dates of the current term |
| Interested parties | Anyone noted on the policy, such as a lender or a landlord, where they have been added |
| Date issued | The day the insurer confirmed the policy was current |
The name on the certificate matters more than people expect. If the policy is in your company’s name and a lease is in yours personally, or the home is owned by a trust, the reader may come back and ask why they don’t match. Getting the insured right when the policy is set up saves that conversation.
A certificate of currency for your home
Buying a home with a loan
The home is the lender’s security for the loan, so most lenders make building insurance a condition of releasing the funds at settlement, and the proof they ask for is a certificate of currency. It commonly needs to show:
- the property address, exactly as it appears on the contract
- building cover starting on or before the settlement date
- a building sum insured, which many lenders expect to be at least the full rebuild cost
- the lender noted as an interested party (sometimes called the mortgagee)
When the risk of damage passes to you depends on your state and your contract. In Queensland, the standard REIQ contract puts the property at the buyer’s risk from 5pm on the first business day after the contract date, which is why many Queensland buyers arrange building cover straight after signing. In most other states it generally passes at settlement, unless the contract says otherwise. Your conveyancer or solicitor can tell you which applies to your contract.
Gary’s home quote asks whether there is a mortgage and who the lender is, so the lender is noted on the building cover from the start and appears on the insurer’s certificate.
Units and townhouses
In a strata or community title scheme, the owners corporation insures the building, not each owner. A lender will usually accept the building policy’s certificate of currency, which your strata manager can provide. Your own policy then covers your contents and the parts the strata policy leaves to you.
Renting out a property
Lenders on investment properties ask for the same proof, and some property managers ask landlords to show their insurance is current before they take a property on. A certificate from the landlord insurance policy answers both.
A certificate of currency for your business
For a business, the certificate is how you prove to someone else that the cover they have asked for exists. The most common readers:
- Landlords, usually under the lease. Commercial leases commonly require public liability at a set limit, often $10 million or $20 million, and sometimes ask for the landlord to be noted on the policy.
- Head contractors and builders, before a subcontractor starts on site. They may ask for public liability and for proof of workers compensation, which is a separate certificate from your state’s scheme. (For one trade’s requirements in full, see insurance for plumbers in Victoria or electrician insurance.)
- Councils, for permits such as footpath dining, market stalls, events, or training in a park.
- Venues, shopping centres and event organisers, before you trade on their premises.
- Clients, when a contract or tender has an insurance clause. A client engaging a consultant may ask for professional indemnity at a stated limit as well.
Read the clause that asks for it, not only the request email. It will say which covers, at what limit, and sometimes for how long after the job ends, and whether the reader must be named on the policy. Public liability, property and the other sections of a business insurance pack each appear on the certificate with their own limit or sum insured. If the clause sets a higher limit than you hold now, here is what public liability costs at $5 million, $10 million and $20 million.
If you are not sure what the difference is between the covers a contract names, our guide to public liability vs professional indemnity sets out what each one is built for.
How to get a certificate of currency
You get one from your insurer, or from the broker who arranged the policy. It can only be issued once the policy is actually in place, so if a lender or landlord needs one by a date, leave time for the cover to be placed first.
If you hold your policy through Gary:
- When the policy is placed, the insurer’s certificate of currency is emailed to you with your policy documents, and it stays in your account.
- Need a fresh one, or someone named on it (a lender, a landlord, a head contractor)? Write to Gary with who needs to be noted and why. Adding an interested party changes the policy, so the insurer has to agree to it first.
- Gary also sends its own summary of your cover. If someone has asked for a certificate of currency, they mean the insurer’s document, so send that one.
Checking a certificate you’re given
If you are the one asking, for example a landlord, a builder hiring subcontractors, or a business engaging a contractor, it is worth checking a certificate before relying on it:
- Does the insured’s name match the business you are dealing with (and its ABN, if shown)?
- Is the period current, and does it cover the dates of the job or lease?
- Is the cover the one you asked for, at the limit you asked for?
- Are you noted on it, if the agreement says you must be?
- If anything looks off, ring the insurer with the policy number and ask whether the policy is current today.
What a certificate of currency isn’t
- It isn’t the policy. It doesn’t show exclusions, excesses or conditions. The PDS, wording and schedule decide what is covered.
- It isn’t a promise about tomorrow. It confirms the policy was current on the date it was issued. A policy can lapse or be cancelled afterwards, which is why some landlords and builders ask for a new one each year.
- It isn’t a quote, an invoice or a receipt. None of those confirm that the insurer has put the cover in place.
Need cover in place before settlement or a start date?
One online form, prices from more than one insurer, and the insurer’s certificate sent with your policy documents once it’s placed.
Questions people ask about certificates of currency
What is a certificate of currency?
A short document from an insurer confirming that a policy is current (in force) on the date it is issued. It names the insured, the insurer, the policy number, the type of cover, the limit or sum insured and the period of insurance. It is proof the policy exists, not the policy itself.
Who issues a certificate of currency?
The insurer, or a broker on the insurer’s behalf. If you hold your policy through Gary, the insurer’s certificate is sent to you with your policy documents when the policy is placed, and you can ask for a new one at any time.
Do I need a certificate of currency for a home loan?
Most lenders ask for proof of building insurance before they release the funds at settlement, and a certificate of currency is the usual proof. It generally needs to show the property address, a start date on or before settlement, the building sum insured, and the lender noted as an interested party.
How long does a certificate of currency last?
It confirms the policy was current on the day it was issued, and it shows the policy’s expiry date. Once the policy renews, a landlord, lender or head contractor will usually want a new certificate for the new period.
Is a quote or an invoice a certificate of currency?
No. A quote is a price for cover that hasn’t started, and an invoice is a bill. Neither confirms the policy is in force. Only the insurer’s certificate (or the policy schedule, where that is accepted) does that.
Can I get a certificate of currency the same day?
Once a policy is in place, usually yes: it is a standard document the insurer produces from the policy. What takes longer is adding someone as an interested party, because that changes the policy and the insurer has to agree to it first.
Is this advice for me?
No. This guide is general information about what a certificate of currency is and who commonly asks for one. It doesn’t consider your objectives, financial situation or needs. Read the PDS for any cover you are considering, and talk to a broker if a lease, loan or contract asks for something you’re unsure about.
More plain-English reading in Gary’s guides. Covering a home? See home insurance through a broker.
Important
This guide is general information only and is not personal advice. It doesn’t take into account your objectives, financial situation or needs. It summarises published documents as they stood when we read them; insurers change their wordings, and a policy’s schedule and endorsements can change how its wording applies. Quotations are reproduced for commentary and are accurate to the versions listed. Before deciding on any cover, read the PDS, policy wording and Target Market Determination for that product. Gary is not suggesting any of the insurers named is, or isn’t, right for your business.
Want to see what business cover costs you?
One form, the PDS beside every price, and a broker to ask when a condition doesn’t make sense.