Buildings insurance when selling in england

shhe

When selling a freehold property that is owned outright, would the seller need buildings insurance? and what would happen, if the seller wasn't able to get insurance? Could someone please advise for mortgaged buyers and cash buyers, thanks

HappyMJ

You don't "need" buildings insurance but it is a very good idea. If the seller can't get insurance then it will likely put the buyer off purchasing the property depending on the reason. Mortgages buyers and cash buyers are very similar. The seller gets cash in both circumstances.

shhe

Reason being due to living away for uni, not because there's any other problems

HappyMJ, love your avatar

Scully38

shhe wrote: »

When selling a freehold property that is owned outright, would the seller need buildings insurance? and what would happen, if the seller wasn't able to get insurance? Could someone please advise for mortgaged buyers and cash buyers, thanks

You don't require it, but its important you have it. Even if you own the property outright, there are lots of things that could happen to it such as Fire, subsidence, car smashing into property, burglaries (smashing windows, doors), flooding, lighting strikes.

If you didn't have it you'd have to pay for the damage yourself and i such as a fire broke out ruined your house, could you afford a 100k to fix it? Hence why building insurance is needed.

Can you specify what reason they wouldn't get insurance?

shhe

Scully38 wrote: »

You don't require it, but its important you have it. Even if you own the property outright, there are lots of things that could happen to it such as Fire, subsidence, car smashing into property, burglaries (smashing windows, doors), flooding, lighting strikes.

If you didn't have it you'd have to pay for the damage yourself and i such as a fire broke out ruined your house, could you afford a 100k to fix it? Hence why building insurance is needed.

I understand why it's a good idea to have it but problem is i cant find an insureser tht willcover me while i'm away studying

Scully38

shhe wrote: »

I understand why it's a good idea to have it but problem is i cant find an insureser tht willcover me while i'm away studying

Few questions

1. How long will you be away?
2. Is anyone staying in the property whilst you're away?
3. If empty, are you just leaving it empty, ie no plans for house sitter?
4. How long is it empty for?

Scully38

I'm not endorsing any of these, and have no idea how good/bad they are, but it looks (on prima facia) that they deal with unoccupied dwellings. If you type into google "Unoccupied property insurance" you'll get a lot of replies coming up.

http://www.justlandlords.co.uk/blog/2011/02/07/who-needs-unoccupied-property-insurance/

http://www.quote-4.me.uk/unoccupied-property-insurance.html

G_M

Speak to an insurance broker. Most online insurers will have a maximum unoccupied period (30 days? 45?) after which the insurance is invalid, but a broker will find you one.

It is wise to have. If selling, once you Exchange Contracts it depends which contract you (more likely your solicitor?) use. Some pass the risk to the buyer at Exchange in which case the Buyer should insure - but it's wise to keep the place insured up to Completion.

System

Why do you ask the question only now you are selling? You have already taken the risk of being uninsured all the time you have owned the property.