Can't get buildings insurance !

paul2louise

I am buying a new build property which is due for completion in september this year. I am in the process of arranging a mortgage but my mortgage provider say that they cannot make an offer without buildings insurance in place. As the property has not been built the postcode has not been registered with the post office. I have asked my builders why thay have not registered it yet and they register it when the first people move in. This could be another month yet.

Who is being awkward, the builders, the mortgage people. Does this mean i may not get my mortgage offer until the last minute.

I may want to transfer my building and contents insurance from my existing lender but i cant get a quote without a registed postcode

please can anyone help
thanks
Louise

lisyloo

It sounds to me like your mortgage company are being very awkward (unless I've misunderstood).

Why would you want to insure a building you don't own?
Mortgage companies do offers all the time without this.

Why don't you try a different company for a mortgage, or go to a mortgage broker? I think they are just trying to sell you some unnecessary insurance.

Debt_Free_Chick

lisyloo wrote:

I think they are just trying to sell you some unnecessary insurance.

I agree. I think they are asking you confirm who is providing the insurance. Frankly, it's none of their business! (marginally.... it is, as they want protection for their security!).

However, you are going to find it difficult to get an insurance quote elsewhere without a postcode, as insurance is rated according to postcode.

So ... I'd try and persuade the developer to register the property and get a postcode. Explain why you want them to do this.

Have any others moved in to the development? If so, ask them for the postcode as yours may well be the same or very similar to it.

Regards

lisyloo

Frankly, it's none of their business!

I wouldn't go that far.
All lenders will insist you have buildings insurance and you are meant to name them as a beneficial on the policy.
This is because they don't want to end up with nothing if the place burns down.
This is a condition of the mortgage and it's quite reasonable in my opinion to insist you have this WHEN you buy the property.

However it is not reasonable to insist you have it just for an offer.
Make sure you fully understand what they are asking for.

BTW - if they haven't registered the postcode then I'm afraid you are going to have problems for about 5 years.
Anyone making a delivery, breakdown vehicles etc. will not know where to find you for years to come, because it take a long time for maps to get updated.
Things will have improved with sat nav, but you are still going to have problems.
When you have things delivered make sure you give directions and/or a phone number.

paul2louise

thanks
I am buying plot8 so there should be 7 move in before me. My house wont be ready till late sept early october. I intend to move my contents and building insurance with the halifax to my new house when i move. I am in the process of increasing mortgage with the yorkshire bs as i am tied in until march 06. Can i get a letter from halifax saying they will transfer the insurance even though they cant quote me yet. Also i know ybs are going to try and sell me life, CI, and all the other packages that come with the mortgage. I DONT WANT ANY OF THEM. I just want to to get a mortgage offer the easiest way.

thanks

Louise

lisyloo

Can i get a letter from halifax saying they will transfer the insurance even though they cant quote me yet.

No idea, but if were an insurance company there is no way I'd guarantee that without a postcode.

You need to go back to Yorkshire, explain the situation and find out what they will accept.
If they are trying to sell you insurance then why not tell them you will take out their insurance.
Check out the cooling off period but you will probably have some time in which to cancel.
If they are just trying to sell you a policy then this might do the trick.

(Make sure you check how long the cooling off period is first though).

Wyndham

It is very, very advisable to have buildings insurance in place when you exchange contracts, as you then have an insurable interest in the property. So, for example, if it burnt down you would lose out, so need to be insured and can legally do so. Of course, this means you will have two properties insured between exchange and completion - but it's just another of those expenses you have when you move house. :mad:

paul2louise

I have already exchanged months ago and the building comapny own the property until completion. Only then do i have any rights to the property. so i cant insure it till completion anyway

Louise

Wyndham

paul2louise wrote:

I have already exchanged months ago and the building comapny own the property until completion. Only then do i have any rights to the property. so i cant insure it till completion anyway

Louise

Yes you can. As you have exchanged you have an insurable interest in that if something happened to that property you could lose money i.e. your deposit. Your solicitor will be able to advise, but they should tell you this.

cattie

paul2louise wrote:

Can i get a letter from halifax saying they will transfer the insurance even though they cant quote me yet.
thanks
Louise

Buildings & contents Insurance isn't transferable, so when you move the existing policy will end & you will have to take out a new one for your new address.

paul2louise

yes i understand that but my contents will be the same and extra items i want insuring.

Louise