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    • karljt2013
    • By karljt2013 11th Oct 17, 5:08 PM
    • 69Posts
    • 15Thanks
    karljt2013
    If I pay cash for a freehold terrace house do I legally need buildings insurance?
    • #1
    • 11th Oct 17, 5:08 PM
    If I pay cash for a freehold terrace house do I legally need buildings insurance? 11th Oct 17 at 5:08 PM
    Thanks in advance.
Page 1
    • Mossfarr
    • By Mossfarr 11th Oct 17, 5:10 PM
    • 425 Posts
    • 563 Thanks
    Mossfarr
    • #2
    • 11th Oct 17, 5:10 PM
    • #2
    • 11th Oct 17, 5:10 PM
    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.
    Last edited by Mossfarr; 11-10-2017 at 5:14 PM.
    • Comms69
    • By Comms69 11th Oct 17, 5:11 PM
    • 486 Posts
    • 358 Thanks
    Comms69
    • #3
    • 11th Oct 17, 5:11 PM
    • #3
    • 11th Oct 17, 5:11 PM
    You'd be foolish not to!
    • karljt2013
    • By karljt2013 11th Oct 17, 5:13 PM
    • 69 Posts
    • 15 Thanks
    karljt2013
    • #4
    • 11th Oct 17, 5:13 PM
    • #4
    • 11th Oct 17, 5:13 PM
    I don't think its a legal requirement but it is definitely a necessity!
    Originally posted by Mossfarr

    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
    • By Surrey_EA 11th Oct 17, 5:13 PM
    • 1,157 Posts
    • 1,355 Thanks
    Surrey_EA
    • #5
    • 11th Oct 17, 5:13 PM
    • #5
    • 11th Oct 17, 5:13 PM
    You don't legally require it, but surely you'd be mad to not have some sort of cover?
    • kingstreet
    • By kingstreet 11th Oct 17, 5:13 PM
    • 32,080 Posts
    • 17,169 Thanks
    kingstreet
    • #6
    • 11th Oct 17, 5:13 PM
    • #6
    • 11th Oct 17, 5:13 PM
    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
    • By aneary 11th Oct 17, 5:14 PM
    • 619 Posts
    • 469 Thanks
    aneary
    • #7
    • 11th Oct 17, 5:14 PM
    • #7
    • 11th Oct 17, 5:14 PM
    what about your neghbours.

    You are moving to a terrace house one goes up the ones either side generally do too.
    • Surrey_EA
    • By Surrey_EA 11th Oct 17, 5:15 PM
    • 1,157 Posts
    • 1,355 Thanks
    Surrey_EA
    • #8
    • 11th Oct 17, 5:15 PM
    • #8
    • 11th Oct 17, 5:15 PM
    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.
    Originally posted by karljt2013
    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
    • By Comms69 11th Oct 17, 5:17 PM
    • 486 Posts
    • 358 Thanks
    Comms69
    • #9
    • 11th Oct 17, 5:17 PM
    • #9
    • 11th Oct 17, 5:17 PM
    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.
    Originally posted by karljt2013


    You know what, you're right. don't bother!
    • eddddy
    • By eddddy 11th Oct 17, 6:29 PM
    • 5,281 Posts
    • 4,919 Thanks
    eddddy
    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
    • By 00ec25 11th Oct 17, 6:36 PM
    • 5,037 Posts
    • 4,381 Thanks
    00ec25
    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.
    Originally posted by karljt2013
    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....
    • AdrianC
    • By AdrianC 11th Oct 17, 8:16 PM
    • 15,292 Posts
    • 13,627 Thanks
    AdrianC
    How much will buildings insurance be?
    How much is the possible payout if something goes very wrong?

    Sounds like good value to me.
    • davidmcn
    • By davidmcn 11th Oct 17, 8:22 PM
    • 5,936 Posts
    • 5,691 Thanks
    davidmcn
    I believe the odds are massively in my favour of nothing going catastrophically wrong.
    Originally posted by karljt2013
    They are - that's why buildings insurance is very cheap. Can you afford to rebuild your house (and your neighbours') if something disastrous did happen?
    • Red-Squirrel
    • By Red-Squirrel 11th Oct 17, 9:13 PM
    • 1,746 Posts
    • 4,723 Thanks
    Red-Squirrel
    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.
    Originally posted by karljt2013
    What if your neighbours leave the gas on or start a fire that spreads?

    What if a bus crashes into the front of your house?

    What if you flood in freak conditions even though you aren't on a flood plain and its never happened before?

    What if a slow leak that you don't realise is there causes your whole kitchen ceiling to come down?

    All unlikely, but they have all happened to people I know (all different people not one unlucky family!)

    You can take the risk, but its not one most people would be comfortable with, and the consequences if you bet wrong would be much worse than paying about £100 a year for the peace of mind.
    • Davesnave
    • By Davesnave 11th Oct 17, 11:58 PM
    • 23,337 Posts
    • 88,953 Thanks
    Davesnave
    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.
    Originally posted by karljt2013
    I believed much the same, but someone else set fire to my house, causing £100k worth of damage and rendering it uninhabitable for 6 months. Bit of a blow to come home to, but I was able to house us and start sorting it all out the next day.

    If you are wealthy enough to cope with such an emergency, then you might not need insurance, but people who are that rich wouldn't normally question the modest cost of insurance!
    Last edited by Davesnave; 12-10-2017 at 12:01 AM.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • saajan_12
    • By saajan_12 12th Oct 17, 8:24 AM
    • 848 Posts
    • 557 Thanks
    saajan_12
    The fact that insurance companies make profit means that the mathematical EXPECTATION is you'll be worse off ie.
    payout * probability something goes wrong < total premiums paid

    The point of insurance however, is to remove the variance of this. In general, assuming you're equally likely to lose/break something as the average person
    - if you can afford to replace it -> don't get insurance, just maintain savings
    - if you can't afford to replace it -> do get insurance

    So for example if you can afford to replace your mobile phone and aren't particularly clumsy/forgetful, there's no point insuring it. With house insurance, you're very likely to never claim but you're paying for the security of not having the variance that if something did happen, you wouldn't lose your home and be unable to get another easily (even if that's renting).

    So after that waffle, my point is
    OP- it isn't a legal requirement, but don't focus just on how likely you are to burn the house down etc as there are other outside factors particularly for a terraced house e.g. neighbours. The decider should be can you afford to buy another house / sort out other accommodation if something did go wrong?
    Last edited by saajan_12; 12-10-2017 at 8:26 AM.
    • Slinky
    • By Slinky 12th Oct 17, 8:57 AM
    • 4,591 Posts
    • 19,754 Thanks
    Slinky
    You can't control what other people do or whether they have insurance. These have both happened in the last week.

    http://www.bbc.co.uk/news/uk-england-beds-bucks-herts-41580280

    http://www.leightonbuzzardonline.co.uk/news/update-diner-thrown-off-seat-when-car-crashed-into-husborne-crawley-pub-1-8188909
    • Mardle
    • By Mardle 12th Oct 17, 9:41 AM
    • 317 Posts
    • 627 Thanks
    Mardle
    As Slinky said 'you can't control what other people do'.

    We had to claim on insurance 2 years ago when the local 'little dears' decided it was a good idea to play 'cricket' with gravel and pieces of wood they'd broken off a neighbours fence. They broke a large pane of glass in our bay window.

    Last year we paid almost £1000 to have our front garden wall replaced by railings because we were fed up of the 'little dears' sitting on it smoking, swearing & generally being a nuisance. Last month this happened https://www.youtube.com/watch?v=rH4pqRzdpHc&feature=youtu.be The driver wasn't aware that he'd hit the railings. They've been pulled away from the wall and can't be straightened. Without the CCTV we wouldn't have known who was responsible and would have had to claim on insurance. Thankfully the company is paying for their replacement.
    • Car1980
    • By Car1980 12th Oct 17, 10:41 AM
    • 220 Posts
    • 99 Thanks
    Car1980
    The Grenfell House fire started with a neighbour’s faulty appliance.
    My wife’s flat burnt down when her Indesit washing machine burst into flames when she was out (it was switched off).

    Housing and contents insurance can be as low as £120 a year. Insurance works because the people who don’t claim pay for the people that do. 100,000 people all putting a tenner in a pot every month to pay for the 5% who claim (and who might claim hundreds of thousands) is a good deal. Phone insurance on the other hand, maybe not
    Last edited by Car1980; 12-10-2017 at 10:48 AM.
    • Rambosmum
    • By Rambosmum 12th Oct 17, 11:37 AM
    • 1,478 Posts
    • 1,934 Thanks
    Rambosmum
    You don't need it. However get it. It's not expensive.


    Our close friend owned a house which had to be knocked down due to a gas explosion caused by a neighbour (it was in the news, a child died - not the friends child). He owned the house outright so didn't have insurance. He now has no house and just a piece of land where a terrace house used to be and no way to rebuild it. The neighbour also didn't have insurance, so no way of claiming the money from them.
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