Required to have Buildings Insurance at EXCHANGE?

Baby_A

Is this normal? I am required to have buildings insurance at exchange, how can this be when the house isnt mine yet?

What happens if the house falls down after exchange (I know its unlikely but still, completion will be about a fortnight later)?

I would of thought it should be required for completion?

dkny_2

Baby_A wrote:

Is this normal? I am required to have buildings insurance at exchange, how can this be when the house isnt mine yet?

What happens if the house falls down after exchange (I know its unlikely but still, completion will be about a fortnight later)?

I would of thought it should be required for completion?

I think its normal, we had to do this last week, basically the lender requires you to do this as it may be one of their requirements.

Good luck

billycasper_2

Hi there, it is generally accepted that the house is "at risk" from the time of exchange. In the event of a catastrophic falling down of the walls the seller may have had the money from his lender, gone abroad and the bank would lose out..
The completion date is the legal date of ownership but because of the nature of the transactions banks like to cover themselves.
the other party will be in exactly the same boat. some banks wont release the money unless they see a buildings insurance certificate.