Buildings insurance, after exchange or day of completion?

BASFORDLAD

Hey guys,

I cant remember if we should have buildings insurance in place for new house after exchange of contracts or for the day of completion?-anyone help with this?

fivepound

I think I read on here that it's your responsability once the contracts are exchanged!

silvercar

safer to do it once you've exchanged, then at least you know you're covered.

fivepound

Just checked with my insurer as I move in about 8 weeks. They tell me that Im covered for buildings on BOTH houses from exchange if my purchaser fails to arrange his/her insurance. But contents only on my current house. My contents are then covered in transit to my new house.

So yes, make sure you have buidings cover in place from exchange or it gets messy.

RufusFrog_2

I have done a lot of googling on this subject and have found the advice on solicitors' websites to range from 'absolutely necessary' to 'completely optional'!

Most mortgage companies will insist on it on exchange, even though it often leads to the property being double insured.

However the standard terms of a house buying contract (fourth edition) seem to state that if the property is substantially not in the same state as when the contracts were drawn up (e.g. burnt to the ground) the buyer can withdraw and not lose his deposit. Therefore the risk to the buyer isn't that great (although if selling as well they would have to vacate their own property on the completion date and would obviously get no financial help with alternative accommodation). So for peace of mind it's probably a good idea (so why haven't I done it???).