Buildings insurance between exchange and completion

cuthbei

Hi,

I have just exchanged contracts on a house but won't be completing until the 23rd June. I need buildings insurance between these two dates.

Most insurance companies won't touch it because "I won't be living in the house for more than 30 days"! Of course I won't, it isn't my house yet.

I tried a couple of brokers and they were no help.

Any ideas who I could try?

Thanks, Cuthbei

virgo149

Who is your mortgage with? When this was going to happen to us, we took the Nationwide insurance deal as they threw in this protection until completion. You could always then cancel later (t&c's providing).

dacouch

Try different brokers as it is common practice for the purchaser to arrange cover on a property they are exchanging on.

What is complicating yours is the gap between when you want cover and when you will be moving in.

I would recommend trying more brokers, try local brokers rather than Swintons etc. If you have a building policy already I would expect them to offer cover as they are normally more willing to accomadate.

cuthbei

Hi,

Thanks for your help. The mortgage is with Natwest, who won't offer us a policy because the house is too old. We don't have a current buildings policy, we are renting at the moment.

I think I'll get on the phone to a few brokers in the morning.

Would you normally try and get an annual policy or a short term one? When I move in I'll need buildings and contents, so it would be nice if they were in sync. I could take both now I guess and just waste a few £.

Thanks, Cuthbeo

OhPoopy

Hi Cuthbei,

How did you get on with this? I'm in exactly the same boat: Exchanged yesterday, don't complete until the 15th June. Now I can't get the insurance companies to cover me based on the long gap between exchange and completion.

Did you find anyone who could help?

Thanks,
OhPoopy.

dacouch

Your first port of calls should be your current building provider and / or who ever is providing your mortgage as they will look on your more favourably. Failing that try some of the advice we have posted above

Quentin

Your solicitor should have advised on this - once contracts are exchanged the property must be insured, otherwise should any disaster happen between now and completion then the problem will be yours, not the vendors.

Normally if a mortgage is involved it is a condition that insurance is in place at exchange.

OhPoopy

Quentin wrote: »

Your solicitor should have advised on this - once contracts are exchanged the property must be insured, otherwise should any disaster happen between now and completion then the problem will be yours, not the vendors.

Normally if a mortgage is involved it is a condition that insurance is in place at exchange.

Indeed.

That'll be why I'm not going to approach the mortgage provider and ask for insurance after exchange has already happened......

Quentin

So why did your solicitor let you exchange without the insurance in place?

OhPoopy

Quentin wrote: »

So why did your solicitor let you exchange without the insurance in place?

Once again: Indeed!

I've just spoken to him and he is going to write to the vendors solictor and request that they confirm in writing that they will continue insurance until completion date. Being as most of the problem is due to the enormous gap between exchange and completion which they insisted upon I'd have thought it is the least they could do.

Cuthbei: Sorry I've hijacked your thread, but maybe the above would work for you too?

cuthbei

I found a broker today that really understood the situation. They advised me to call the vendor and ask him to call his insurance company to add me as "an interested party". His insurance company seem to think this will be fine and they won't even charge.

I'm not sure how my mortgage company will view this, but I'll be well insured anyway.

Of course, this won't work if the vendor cancels the policy, but that won't happen as he has a mortgage as well.

Thanks, Cuthbei