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If I pay cash for a freehold terrace house do I legally need buildings insurance?

karljt2013
karljt2013 Posts: 88 Forumite
in House buying, renting & selling
Thanks in advance.
«134

Comments

  • Mossfarr
    Mossfarr Posts: 530 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    edited 11 October 2017 at 5:14PM
    I don't think its a legal requirement but it is definitely a necessity!
    How would you pay if an issue with your property caused damage to the neighbouring houses?
    Buildings insurance on a terraced house wouldn't cost much, do some shopping around.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    You'd be foolish not to!
  • karljt2013
    karljt2013 Posts: 88 Forumite
    Mossfarr wrote: »
    I don't think its a legal requirement but it is definitely a necessity!


    Why though? I don't have kids, Am not an alcoholic who could leave the gas on in a drunken stupor, and I believe the odds are massively in my favour of nothing going catastrophically wrong.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    You don't legally require it, but surely you'd be mad to not have some sort of cover?
  • kingstreet
    kingstreet Posts: 38,763 Forumite
    First Anniversary Name Dropper Photogenic First Post
    You don't legally need insurance under any housing situation. A mortgage lender might require you to insure your property, but that's more contractual, than legal.

    The Road Traffic Act legally requires you to have motor insurance, if you don't deposit your £500,000 bond with the Bank Of England when you want to drive on a public highway.

    The only time I've claimed on my home insurance was due to a lightning strike on a neighbour's home which fried all the electrics we had connected to the phone line!
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • aneary
    aneary Posts: 921 Forumite
    what about your neghbours.

    You are moving to a terrace house one goes up the ones either side generally do too.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
    First Anniversary First Post
    karljt2013 wrote: »
    Why though? I don't have kids, Am not an alcoholic who could leave the gas on in a drunken stupor, and I believe the odds are massively in my favour of nothing going catastrophically wrong.

    What if a pipe in the loft from the central heating system leaked whilst you were away for the weekend and water came through the house taking all of the ceilings down?

    There are all manor of things that might need a buildings insurance claim.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    karljt2013 wrote: »
    Why though? I don't have kids, Am not an alcoholic who could leave the gas on in a drunken stupor, and I believe the odds are massively in my favour of nothing going catastrophically wrong.



    You know what, you're right. don't bother!
  • eddddy
    eddddy Posts: 16,436 Forumite
    First Anniversary First Post Name Dropper
    A compromise might be to investigate having a very high voluntary excess.

    That should bring down the premiums you have to pay, but still soften the blow, if a disaster strikes - like subsidence, roof blown off in a storm, lightning strike starts a fire etc.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    karljt2013 wrote: »
    Why though? I don't have kids, Am not an alcoholic who could leave the gas on in a drunken stupor, and I believe the odds are massively in my favour of nothing going catastrophically wrong.
    it would be entirely your own choice whether to have insurance or not

    you have listed some risks above which indicate you are willing to chance those never happening. There are many other risks you have not listed which may.

    FWIW I have not had any insurance on 2 of my properties for >20 years since their mortgages were paid off. I am very willing to accept my gamble may unravel before I die and i will end up selling a plot of land and a pile of bricks hoping to cover the liability claim of anyone who was injury in the catastrophic "event" leading to said pile....
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