Urgent advice needed - buildings insurance on new house purchase!

Cheddar_2

We're due to complete the purchase of our new house tomorrow, and the solicitor has insisted that we send her evidence of buildings insurance ASAP (before completion).

The house requires much updating and building work (we're having two double dormers added) before we move in. We have applied for planning permission and the building work should (hopefully) start around mid-February. We therefore anticipate moving in around April, once the worst of the building work is done.

Do we need specialist insurance cover for 3-4 months or so as the property will be unoccupied? If so, where do we get it? Or should we buy a traditional full year's buildings insurance policy through the MSE comparison sites (giving details of current door and window locks, rooms, etc) and then buy a whole new policy in 3-4 months when the property is completed and we move in properly?

Soooooo confused

cogito

The best you can hope to get is a policy limited to fire, lightning, aircraft and explosion cover. Speak to a good broker or contact Towergate who have a facilitry for unoccupied buildings. Once the property is occupied, you should be able to get full cover.

Lack of cover for theft and malicious damage means you must make the property secure and not leave anything valuable on the premises.

Also be sure to disconnect all mains services especially water to prevent burst pipes. You will need to leave the electricity supply on if there is a burglar alarm installed.

huckster

Cheddar

You should phone the Insurers that Insure your main residence with. They should be able to arrange cover on a restricted perils basis.

The Fire, lightning, aircraft and explosion cover will not be adequate for your mortgage company. They will also require the property to be covered for subsidence, flood and other perils that they list in their documents.

cogito

If the OP has a mortgage, the mortgage company may be able to help. If full cover isn't available in the market (it won't be), the lender is hardly in a position to insist on it.

lisyloo

If the lender is insisting then have you considered asking the lender to supply it?

huckster

Cognito

Believe me if the Mortgage company is not happy with the Insurance cover, they will not release the mortgage funds.

I have worked in a mortgage centre, vetting Insurance on behalf of mortgage underwriters.

If the company that provides the mortgage, also sells Insurance, they might be able to help, as they could obviously obtain the survey on the property and this would help in conjunction with other information to decide on what cover they can provide.

cogito

huckster wrote: »

Cognito

Believe me if the Mortgage company is not happy with the Insurance cover, they will not release the mortgage funds.

I have worked in a mortgage centre, vetting Insurance on behalf of mortgage underwriters.

If the company that provides the mortgage, also sells Insurance, they might be able to help, as they could obviously obtain the survey on the property and this would help in conjunction with other information to decide on what cover they can provide.

I know.

BTW - It's cogito

inkyblue_2

You can get the full cover you need, it is expensive but if you are concerned then contact a good local broker who will be able to assit.

Cheddar_2

Thanks to you all for your advice - very much appreciated :money:

Having contacted Towergate as advised above, I subsequently came across another thread on these forums which mentioned that the Halifax offered a policy too. We bank with the Halifax, and have always been happy with what they've had to offer.

The Halifax's quote came in at £50.21 per month, but the policy cover exceeded any other we found online (covering all of the lender's criteria), plus we can cancel it with 14 days notice whenever we need to. That suits us great The nearest quote we got from elsewhere (still waiting on Towegate's one) was for £298, but that was for 12 months basic cover (not covering all the lender's criteria) and no part-refund for cancellation within the 12 months.

We have also spoken directly to the lender, and although the first advisor my wife spoke to this morning said that the underwriters would need to be faxed proof of sufficient cover, a second advisor this afternoon told us that was a load of tosh, and the only person that needs evidence of sufficient cover is our solicitor, who signs a document to such effect, which must be sent to the lender before completion.

So it looks like we're all sorted now. Thanks again! :beer: