FTB - Building Insurance???

Squirrell

The information on this subject is a little vague. Our solicitor advised that they need the building insurance paperwork before we can exchange contracts. Who would be the best to use or where to check for building insurance and how can I arrange that it is only effective from date of exchange rather than instantly?

We do not have an exchange date yet, contracts have not been exchanged.... what am I missing here? :eek:

Richard_Webster

Get quotes from insurance companies - these should come with some reference number or be available on line. Then you simply telephone or go on line to activate the quote and turn into a policy as soon as your solicitor tells you that you have exchanged.

keith969

Your solicitor is being a little economical with the truth. You need buildings insurance to start on the day of exchange, not before. Just get some quotes in via the usual comparison websites - specify an arbitrary date.

On the day of exchange, take out the policy you have decided on. You will need to call the insurer and get them to fax a copy of the schedule to the solicitor so that he can issue this to your mortgage company.

For most insurers this is perfectly normal. I did mine online through Quidco with the AA, all went quite smoothly.

goodintentions2010

I am at exactly the same point as you in the first time house buying game and am just about to exchange contracts, it is usually a condition of the mortgage lendor for building insurance to be in place from the day of exchange to protect the mortgage lendor and you if the building is damaged. If you are buying a freehold property you need to provide this, if it is leasehold (eg a flat) the freehold company will provide it, you will need to ask them.

There are plenty of places to get quotes from - try the big sites such as compare the market who will search through a large panel of insurance companies, it is often cheaper to combine contents and building insurance (most companies seem to give a 15% discount) but you can buy the two policies seperately and my get a better deal! A quote will be valid for a certain amount of time, once you know your exchange date you will be able to contact the company with the best quote with the reference number they give you, pay instantly over the phone or online and have the details sent to you to provide to your solicitor. Most insurance companies will allow you to pay in monthly installments (check about extra costs) or for the annual policy in one go. I have insured with my mortgage company as they gave the best quote and after 3 months I get £100 cash back, might be worth checking if your lendor has a similar offer as they worked out cheapest by far for me

To get the most accurate quote you will need to provide the minimum cost required to rebuild the property this will be on the valuation survey carried out for your mortgage company, ther than that they will ask details about the property, if you want contents insurance as well you will need to think about the value of the total items inside the property, they will ask you about high value items such as jewellry.

My solicitors just required the policy number and insurance company name.

timmyt

Squirrell wrote: »

The information on this subject is a little vague. Our solicitor advised that they need the building insurance paperwork before we can exchange contracts. Who would be the best to use or where to check for building insurance and how can I arrange that it is only effective from date of exchange rather than instantly?

We do not have an exchange date yet, contracts have not been exchanged.... what am I missing here? :eek:

typically you insure from exchange, but the lawyer is wrong to say he has to have proof before he can exchange. that is your problem to ensure you insure from exchnage as the lawyer need only have it beyond doubt at the point of completion (i.e he cannot request the lender money without proof it is insured to the satsifaction of the lender).

you get insurance cover instantly over the phone so when your lawyer calls you say you'll call him back in 20 mins and so get your quote - gocompare.com etc

i always give my buying clients a summary of the lenders requirements (just a side of a4) for the insurance policy and they have their insurer complete it and fax direct to me - I get it every time and before completion.

that said, many lawyers fail to alter the contract for the sale to you and require the seller to keep insurance going until completion. it is appropriate for a buying lawyer to do this when:

1. the seller has no related onward purchase
2. a probate/executor sale

what is your seller's position? and has your lawyer attempted to alter the contract if the seller faills in 1 or 2?