Can't get buildings insurance !

paul2louise

I have sorted out the postcode thing now i just emailed royal mail

postcodeadmin@royalmail.com

and now i can get insurance quotes

by the way i have contacted my builders about insurance for the buildings and they said it isnt my property until i complete and get my keys so i cant insure it. If it burns down or gets knocked down they are completely liable and have to rebuild it. They cant promise to compensate for delay but that is good enough for me. I have now got a quote for buildings insurance so all i have to do is give them a date when i know when to complete.

Thanks


Louise

Debt_Free_Chick

paul2louise wrote:

by the way i have contacted my builders about insurance for the buildings and they said it isnt my property until i complete and get my keys so i cant insure it. If it burns down or gets knocked down they are completely liable and have to rebuild it.

Very strange. If it's not insured, how are they liable?

You have an insurable interest in the property once you exchange. You should find your solicitor tells you to put the insurance into effect on the day you exchange.

Look at it like this ..... you exchange - you are committed to completing the purchase. The property then burns down before completion date.

Which would you prefer to have - insurance or no insurance?

Regards

paul2louise

i exchanged in march, it wasnt even at the stage of footings. How can i insure a piece of ground. The building company insure the property until i complete then i can insure it

my solicitor is fully aware of the arrangements.

Wyndham

paul2louise wrote:

my solicitor is fully aware of the arrangements.

Well, it's none of my business, of course, but in that case I would suggest you change solicitor

paul2louise

Wyndham wrote:

Well, it's none of my business, of course, but in that case I would suggest you change solicitor

are you a solicitor. this is the reply from my solicitor

"Hi

The builders keep the property fully insured to date the date of completion. The Property remains their liability until this point.

Thanks "

I appreciate advice but I would hope that solicitors know what they are doing after all they are legally trained.

Louise

Debt_Free_Chick

paul2louise wrote:

are you a solicitor. this is the reply from my solicitor

"Hi

The builders keep the property fully insured to date the date of completion. The Property remains their liability until this point.

Thanks "

I think I would want to know the purposes for which the builder is insuring the property e.g. "fully insured" for what? For example ... if it burned to the ground ...how does that affect you?

Also, what if you had already exchanged and agreed to move out of your existing property on a specific date? Would the builder's insurance pay for temporary accommodation for you? At what standard?

The builder is the seller and any seller will want to minimise their risk - and, therefore, minimise their premium. I think you would want to be sure that the builder's insurance policy gives you all the insurance you would want.

HTH

Wyndham

paul2louise wrote:

are you a solicitor. this is the reply from my solicitor

"Hi

The builders keep the property fully insured to date the date of completion. The Property remains their liability until this point.

Thanks "

I appreciate advice but I would hope that solicitors know what they are doing after all they are legally trained.

Louise

I'm not, but my dad is, and it's his advice I'm passing on. He also has a low opinion of many solicitors who are out there who while trained, don't necessarily know the law in every detail. This is especially true if they don't specialise and move from divorce cases to conveyancing all in the same day.

paul2louise

havings read some of your replys i decided to search this forum for people in the same possition as me. I came across a posting in 03-01-2006 discussing this problem and i hope i dont upset anyone by quoting some things people said

On new builds, as I understand it, the contract is different. You're buying a peice of free/leasehold land with the builder contractually obliged to build a specific house on it. Until it's built and handed over at completion, although you have exchanged contracts, the builder hasn't completed their side of the contract, so you don't need to insure as the builder must hand over in an acceptable state.

On newbuild, it is normal to only insure the property at completion.

you do not own the property until you complete why should you insure it. If anything happened to a new build house before completion of contracts surely the builder would put it right or its going to be a very long snagging list!!!

our solicitor confirmed that we just need to have buildings insurance in place for completion

so can someone who really knows about buying a new build please tell me what happens. This is getting me quite upset as i trust my solicitor is acting for me and i dont want to doubt her

thank you

Debt_Free_Chick

paul2louise wrote:

so can someone who really knows about buying a new build please tell me what happens. This is getting me quite upset as i trust my solicitor is acting for me and i dont want to doubt her

thank you

You need to look at the contract you have with the developer - this will clearly state what the developer's obligations are.

If you are really prepared to trust a bunch of strangers (including me) on an internet message board, more than your solicitor, then you need a new solicitor:(

silvercar

Although the builders are responsible for delivering you a house as per their glossy brochures - hence the snagging list- they will not be responsible for delays.

So you don't need building insurance as the builders will always be obliged to deliver but they will not pay out for any delays. If your house wasn't ready for 3 months, who would pay the rent on temporary accomodation?