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insurance - when?

slopemaster
slopemaster Posts: 1,581 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
in House buying, renting & selling
Do I need to insure the house I am buying as from exchange, or completion?
I have seen contradictory things
Thanks...
«1

Comments

  • Gwhiz
    Gwhiz Posts: 2,322 Forumite
    Part of the Furniture Combo Breaker
    I've always done from Exchange!
  • slopemaster
    slopemaster Posts: 1,581 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Yes, thats what the mortgage broker says.
    i suppose its safer, anyway...
  • boots_babe
    boots_babe Posts: 3,311 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Just came across this thread, is this really true? Whilst once you have exchanged there is no way back, the house and its contents are not legally yours until completion, so why would you need to insure from exchange?

    I'm asking as we're hoping to exchange this Friday and certainly wasn't intending on getting any insurance until we complete.

    Many thanks.
  • Gwhiz
    Gwhiz Posts: 2,322 Forumite
    Part of the Furniture Combo Breaker
    boots_babe wrote: »
    Just came across this thread, is this really true? Whilst once you have exchanged there is no way back, the house and its contents are not legally yours until completion, so why would you need to insure from exchange?

    I'm asking as we're hoping to exchange this Friday and certainly wasn't intending on getting any insurance until we complete.

    Many thanks.

    You only need to insure the buildings - not the contents. Whilst it's not legally yours you are legally committed to buy at exchange so makes sense for you to insure.
  • superfran_uk
    superfran_uk Posts: 1,118 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I thought it was completion - why would I insure a house that does not belong to me? If it burned down now (exchanged but not yet completed) surely that would not be my problem as the vendors are still the current owners?
  • spectre
    spectre Posts: 138 Forumite
    i can 100% confirm you need buildings insurance at exchange date.
  • Treadmill
    Treadmill Posts: 1,102 Forumite
    edited 29 June 2009 at 2:27PM
    You won't be able to complete until the property is insured, I usually start the policy on completion date, as advised by my solicitor
  • Treadmill
    Treadmill Posts: 1,102 Forumite
    spectre wrote: »
    i can 100% confirm you need buildings insurance at exchange date.


    What are you basing that on ? Should we just take your word for it ?
  • kalaika
    kalaika Posts: 716 Forumite
    superfran_uk wrote: »
    I thought it was completion - why would I insure a house that does not belong to me? If it burned down now (exchanged but not yet completed) surely that would not be my problem as the vendors are still the current owners?

    At exchange you are contractually obliged to buy it. The transaction is in progress even if it is not yet completed. If the property was then damaged before completion, the seller could, if they wanted to, still enforce your contract and you would be responsible with fixing it, hence the insurance.
    No trees were killed to send this message, but a large number of electrons were terribly inconvenienced. - Neil deGrasse Tyson (@neiltyson)
  • dogbot
    dogbot Posts: 1,062 Forumite
    Kalaika is exactly correct, you must insurer it because the contract is in force - you have insurable interest created though contract not though ownership.

    In some cases a vendor's policy might provide the benifit to the buyer, but I would never risk this unless details are in the contract of sale - get your own immediatly. Of course, leasehold is another matter.

    Your solicitor really should have explained this to you!
This discussion has been closed.
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