Buildings Insurance

ClaireyFairy

Just had a letter from my solicitor saying they are unable to exchange contracts until i provide them with my buildings insurance schedule.

I have just rang More Than to try and arrange this and was told that i cannot arrange buildings insurance until after exchange but my solicitor tells me that i need this to exchange.

Whatdo i do?

tbs624

Try a different Ins Co if you are dealing with a call centre monkey?

It's *usual practice* for the buyer to have buildings insurance in place from the date of exchange - you set the policy up in advance to begin on that date.

G_M

Or ask to speak to the MoreThan monkey's supervisor!

Yorkie1

There was a thread within the last week on this, I think.

The call centre have misunderstood what you are trying to do. They think you are trying to insure a property that you do not own. You cannot do this without any interest in the property. In fact, you are trying to insure a property once you have exchanged and thus have an interest / risk in the property. Get a quote, provide that to your solicitor and then ring up on the day of exchange to activate it - or at least that's what I did and it was fine.

timmyt

ClaireyFairy wrote: »

Just had a letter from my solicitor saying they are unable to exchange contracts until i provide them with my buildings insurance schedule.

I have just rang More Than to try and arrange this and was told that i cannot arrange buildings insurance until after exchange but my solicitor tells me that i need this to exchange.

Whatdo i do?

YOur conveyancer is wrong. you insure on exchnage - and in fact unless your seller is also buying, they may have cocked up and allowed you to take the risk of damage (i.e insure) too early and could have arrangedit for completion.

but very few if any lenders require it on exchnage, so, the lawyer could be wrong wrong wrong.

the lawyer should exchnage then tell you to place on cover. if you fail to do this the lawyer may be unable to request your mortgage monies.

G_M

timmyt wrote: »

YOur conveyancer is wrong. you insure on exchnage - and in fact unless your seller is also buying, they may have cocked up and allowed you to take the risk of damage (i.e insure) too early and could have arrangedit for completion.

but very few if any lenders require it on exchnage, so, the lawyer could be wrong wrong wrong.

the lawyer should exchnage then tell you to place on cover. if you fail to do this the lawyer may be unable to request your mortgage monies.

Timmyt - are you on acid?

The OP's solicitor is requesting he insure from Exchange (probobly because the Lender requires it?). So..... the solicitor is RIGHT!

timmyt

you misread me. i mean people insure upon exchnage not before. but most lenders only require from completion....and if seller is not buying themself, risk/insurance obligation should not pass to a buyer.

never heard of a buyer being unable to exchnage until insurance proved

G_M

Oh come on! You're supposed to be a solicitor!

Many lenders insist the solicitor ensure (pun intended) the buyer insure from exchange. So the solicitor asks the buyer to show evidence of his (intended) insurance.

OP - get a quote you are happy with, show it to your solicitor who will be satisfied, and then, when your solicitor tells you Exchange has taken place phone the insurer, pay, and get the insurance active.

Timmy - surely you've come across this? When the OP says "unable to exchange contracts until i provide ... " we all know what he means. No?

timmyt

G_M wrote: »

Oh come on! You're supposed to be a solicitor!

Many lenders insist the solicitor ensure (pun intended) the buyer insure from exchange. So the solicitor asks the buyer to show evidence of his (intended) insurance.

OP - get a quote you are happy with, show it to your solicitor who will be satisfied, and then, when your solicitor tells you Exchange has taken place phone the insurer, pay, and get the insurance active.

Timmy - surely you've come across this? When the OP says "unable to exchange contracts until i provide ... " we all know what he means. No?

It is not about me and my qualification, zzzz.


You dont send the lawyer the quote, as that wont give enough detail to satisfy CML minimum cover. Most lawyers (god I hope they do for their clients protection) summarise the CML requirements and get the Buyer to have their insurer sign this to say the policy covers it.

Insurance companies take note - make your policies stamped "CML compliant", and you'll attract more business.


Never heard of a conveyancer holding up an exchnage for proof of quote as that still means it is not in place.

Requiring it by completion I do know of, as few lenders require insurance on exchnage - cannot think of one at this time - as of course the lending only takes place on Completion. And it is the duty of the solicitor to make sure it is in place ("as is reasonable" of course as it only take a phone call by the buyer to cancel it at any time and the lawyer would be none the wiser as they cannot call the Buyers insurer!!! - take note CML)

I think we are saying similar things though GM.

But OP, just check your lawyer didn't just make you insure too early.....many conveyancers get this wrong and insurance can start months too early depending on the gap between exchange and completion.

kingstreet

I put my clients' applications in a couple of weeks early and mark the commencement date as TBA. I then take the solicitor's instructions on when they want the buildings cover started.

If the solicitor requires advance details of the cover which will be in force from exchange, I ask the insurer to fax details of cover to them to ensure it meets the lender's requirements.

Pupnik

I noticed I have an insurance section on the paperwork my solicitor sent to me, too. I don't really know what to do with it as it is a 2 flat house which already has building insurance until October as the guy who owns the top flat rents out a lot of properties and has it covered on his landlord's insurance as per the agreement he had with the vendor. I'm not sure how common this is, or if it is even allowed, so it may be better for me to just ignore that insurance completely and do my own, but then the building (ground floor anyway) will be insured twice. I wish this whole process wasn't so complicated...