Buildings insurance between exchange and completion

Burnsy2023 · 25 May 2018 at 13:33

I know there are specialist insurers that will have products specifically for this but they're not cheap. With most normal insurers, their online forms don't really allow for when your not yet resident and don't actually own the property yet. I've also heard that you get much better deals for buildings and contents insurance when you've moved in, so the specialist product may be worth considering.

What have people done previously when moving?

#Chri5# · 25 May 2018 at 14:47

Rang Aviva and told them. I have a thought they didn't even charge or if they did, it was something like £20 or £30 for the two or three weeks between exchange and completion.

Once we'd moved, just updated the policy to the new house and let it run through. Then searched at renewal time again.

peterwalkley · 25 May 2018 at 16:48

I just asked my existing insurer and they covered both properties. I'm sure it wasn't free, but was so long ago I don't remember what it cost.

AHarvey · 25 May 2018 at 16:59

Burnsy2023 said:
I know there are specialist insurers that will have products specifically for this but they're not cheap. With most normal insurers, their online forms don't really allow for when your not yet resident and don't actually own the property yet. I've also heard that you get much better deals for buildings and contents insurance when you've moved in, so the specialist product may be worth considering.

What have people done previously when moving?

Got to a local insurance broker on the high street, they'll be able to tell you what you need, it won't cost a lot and their insurance covers you if they mess up.

My wife does cover like this all the time at work.

Burnsy2023 · 25 May 2018 at 17:22

peterwalkley said:
I just asked my existing insurer and they covered both properties. I'm sure it wasn't free, but was so long ago I don't remember what it cost.

I'm a first time buyer so don't have any current buildings insurance.

AHarvey said:
Got to a local insurance broker on the high street, they'll be able to tell you what you need, it won't cost a lot and their insurance covers you if they mess up.

My wife does cover like this all the time at work.

I don't think I can get to a high street branch at any time they'll be open so that's out.

AHarvey · 25 May 2018 at 18:22

Burnsy2023 said:
I don't think I can get to a high street branch at any time they'll be open so that's out.

Most will work over the phone or even email, they'll post your bits out to sign and you post them back or drop them off.

Honestly, I wouldn't ever bother doing insurance myself anymore, it's broker all the way.

Slam62 · 25 May 2018 at 18:26

don't think I've ever bothered about this, I would have done so if the mortgage company insisted though.

I would have thought the house is the responsibility of the vendor until you complete.

Participant · 25 May 2018 at 18:40

Slam62 said:
I would have thought the house is the responsibility of the vendor until you complete.

This

.

If uninsured loss happens to the property after you exchange but before you complete, surely it's the liability of the legal owner at the point of the loss? Why would the vendor not be insured up until completion? Or are you worried about the PITA factor from the vendor not bothering and you having to find another property if something goes wrong?

Burnsy2023 · 25 May 2018 at 18:58

Participant said:
This .

If uninsured loss happens to the property after you exchange but before you complete, surely it's the liability of the legal owner at the point of the loss? Why would the vendor not be insured up until completion? Or are you worried about the PITA factor from the vendor not bothering and you having to find another property if something goes wrong?

I thought it was common knowledge that you need buildings insurance from exchange? It's part of the requirements of the Law Society's Conveyancing Quality Scheme and my solicitor won't exchange until I've sent the insurance certificate, although I'm not quite at that point yet.

On a freehold property, if you are having a mortgage, you must put in place buildings insurance from exchange. This is because between exchange and completion, nothing is covering you in case of fire or any other catastrophe and the Seller’s buildings insurance will not cover you. If for example a fire broke out and the buyer had not taken insurance, then he/she either pulls out (and loses the deposit offered which is 10% of the purchase price) or proceeds to completion and is left with the rubble.

https://www.ehlsolicitors.co.uk/buildings-insurance-place-exchange-contracts-completion/

Participant · 25 May 2018 at 20:34

Sorry yes, my mistake. It's been a while. Great lesson in why forum law is largely to be ignored

.

Slam62 · 25 May 2018 at 20:36

Participant said:
Sorry yes, my mistake. It's been a while. Great lesson in why forum law is largely to be ignored .

same here

Kenai · 26 May 2018 at 08:17

I don't recall doing anything special, just got quotes for buildings and contents insurance and bought one the day I exchanged. Maybe something would have become horribly complicated if it had burnt down in the 2 weeks between exchange and completion but I didn't do anything special. I don't remember having any problems with online forms either.