Building insurance - problem re solicitor

clairey_em

Hi all,

I need some advice...

We are due to exchange contracts on tuesday, and have to go in to solicitor's to sign the relevant documents. On friday we received her purchase report, all fine except under buildings insurance it says that we must have written confirmation from the insurers that they will contact our mortgage lender if we fail to make a payment. Now a, we've only got a quote so far, as obviously we are not going to start a new policy on a place we haven't moved into yet, and b, why on earth would tesco, who we are planning to take out our buildings and contents insurance with, contact our mortgage lender? they wouldn't even have that information! On the website it just says that they will assume you want to cancel if you don't make a payment. Do we really need to get this?

It also says that the Mortgage lender needs to approve the quote as well, which also sounds a bit strange, as the insurance is completely seperate from the mortgage, I'm sure we already told them which insurance we were getting...

Any advice greatly received as this has really caused us some concern as we are supposed to be going in to exchange on tuesday and we are not exactly seasoned in the house selling and buying process and with the flat we didn't need buildings ins!! if it was so important shouldn't the solicitor have mentioned it to us sooner...?!!

Thank you very much

clutton_2

Your lender needs to be named on your buidlings insurance policy as, in effect, they own the property until you pay off the loan. The insurance premium will be paid by your lender if you ever default on the premium, but, the cost will be added to your loan, plus admin costs !!

you will need to have the insurance in place on the day you complete, so inevitably you will pay for a few days before you actually move in.

Dont worry about this, it is very routine.

If you insure with someone who is not your lender, then your lender will need to read the policy to check that it covers their requirments, this will cost you £50ish.

clairey_em

Clutton - thank you for your advice - I see now... it's just that tesco haven't yet asked for any details re the mortgage lender yet, so I pressume that means that they will when we actually go ahead and buy it. I'll have to ring the solicitor and the financial advisor in the morning just to clarify! why do these things always happen after close of play on a friday?

thanks again x

Me_Myself_2

You need buildings insurance from the day of EXCHANGE not the day of completion.

MM

clairey_em

ok, will do now then, thanks!