If you’re buying a house, building insurance generally needs to be arranged before settlement, and your lender may require evidence of cover before releasing the loan. It can cover the home and other insured structures against events such as fire, storm or certain accidental damage, depending on the policy’s terms, limits and exclusions. Contents, legal liability and optional extras may need separate consideration. If you’re buying a strata unit, the owners corporation may arrange building insurance, so check the contract and strata records and confirm requirements with your conveyancer, lender and insurer.