Confused about when to get Buildings Insurance on property buy

DJ_Mike

I'm in the heavy depths of solicitors to-ing and fro-ing, sorting out the purchase of a house.

The one thing I'm really uncertain about is at what point I need to have the Buildings Insurance, which my mortgage provider says is a requirement for the term of the mortgage, in place.

My insurer says it is sufficient for me to simply have a list of quotes to hand when I go to meet with them to sign various documents including the Mortgage Deed.

All the websites I'm using require a Start Date for the insurance to commence. My solicitor, however, can't give me a date because they don't know when the Exchange will take place. They've also said that they simply telephone me to say the Exchange has taken place - I'm not really given a specific date (although I can only assume it will take place soon after my meeting with them).

So I'm in a complete muddle - does my Insurance need to be in place for the time of the Exchange, or the time of Completion? Will it be sufficient for me to have a quote, then when the Exchange has happened go to the insurer's website and confirm the policy/pay for it?

A little help for a FTB here would be very appreciated!

kibs88

We had our insurance to start when we exchanged, as if anything happens to the house during exchange and completion then it would be you that is liable, which is why they often say you need it sorted for a mortgage to be approved.

We had our FA get it all ready, it was a ridiculously high quote but it can be cancelled in 14days and since we are completing a week after exchange we are cancelling the insurance after completion so the mortgage company has already given the funds

You could have quotes ready and usually you wil get an exhcange date a few days prior and so you could then get the insurance sorted

loulou41

You need your buildings insurance in place at exchange. We were advised to do so by the solicitor.

gemstars

You do need it in place on exchange, your solicitor will be able to give you an exchange date closer to the time, he's probably just not in a position to do so at the moment. :-)

DJ_Mike

Thanks for the replies, guys! How quickly do insurers give out policy details once I've paid up? Do I need to have received paperwork for the insurance to give to my solicitor, or will a policy number be sufficient if I get one by e-mail/over the phone?

kibs88

I believe a policy number would be fine, as we have only just got our documents, some insurers send documents to yourselves and the mortgage companys.

As long as you have some form of proof such as a policy number then that will be fine.

If you are informed a week before exchange then you should get policy documents through if they wish to see them.

Richard_Webster

You do need it in place on exchange, your solicitor will be able to give you an exchange date closer to the time, he's probably just not in a position to do so at the moment. :-)

He might be able to do this but basically exchange happens as soon as it can happen - we don't wait around for "the exchange date" to arrive! There is no amazing ceremonial that takes place when we exchange so we don't have to book an appointment for it or anything! If we are not ready on the "exchange date" then it doesn't happen.

What you do is get quotes and check how you put the policy on risk - usually going on line and entering the quote reference number will enable you to activate it or phoning up the insurer with the quote reference will do the same thing. Make sure your insurer can fax details to your solicitor within a day or two of exchange as your solicitor will need to check these before he can use the advance money from your mortgage lender.