Chicken Egg Scenario

MadCapHarry

My solicitor requires I send him a copy of my proposed buildings insurance schedule before I exchange contracts. However, when I try to find insurance none of the quoting companies allow you to contact them before you purchase their insurance. So I'm stuck as to how I can get a schedule without paying for the insurance first?

anselld

You pay first with a start date on the proposed date of exchange.
They send you the schedule.
If exchange doesn't happen you cancel.

giraffe69

If you already have insurance you can transfer it to the new property to take effect on exchange.
You could also ring your solicitor and enquire why. After all you are paying him. It is very wise to have buildings insurance once exchange has taken place but I don't believe it is compulsory. Tell your solicitor what the problem is and get his advice.

puregeordie

Exchange can occur without this, but it is a requirement of the lender at completion to have this in place.

anselld

puregeordie wrote: »

Exchange can occur without this, but it is a requirement of the lender at completion to have this in place.

It can, but if it burns down in the meantime the purchaser is still obliged to complete. Hence why conveyancers strongly advise to insure from exchange.

puregeordie

anselld wrote: »

It can, but if it burns down in the meantime the purchaser is still obliged to complete. Hence why conveyancers strongly advise to insure from exchange.

Mine ain't built yet so I guess it cannot burn down, Isn't going to be finished until October and looking online nobody does insurance quote after 2 months! I'll probably have to ring an insurer and get written confirmation, oObviously I'll need this in place before completion, cheers.

G_M

* Go onto one of the standard insurance comparison sites
* enter property and personal details, and enter start date as when you hope/expect to Exchange
* look at quotes
* compare companies and extent of cover
* select the insurer you want to use
* print off the quote
* go to the insurer's website, and print off the policy document

Give quote and policy document to solicitor. He should accept these. On the day you hear he has Exchanged, amend the start date on the quote and activate the policy.

ShALLaX

I had a similar issue with a new build. In the end, the developer said I did not require insurance until completion and that they're fully insured up until that point in time. Were anything to happen to the property prior to this date, their insurance would take full responsibility.

However, this was only verbal, so I'm not sure how much truth was in this.

G_M

ShALLaX wrote: »

I had a similar issue with a new build. In the end, the developer said I did not require insurance until completion and that they're fully insured up until that point in time. Were anything to happen to the property prior to this date, their insurance would take full responsibility.

However, this was only verbal, so I'm not sure how much truth was in this.

A New Build is likelyto be different. The Developer will be insured throughout the construction process.

With an occupied property, it depends which version of the Standard Conditions of Sale is used. The (current) 5th edition places liability on the buyer between Exchange/Completion, sothe buyer should insure.

The previous (4th) edition placed liability on the seller.

puregeordie

""A New Build is likelyto be different. The Developer will be insured throughout the construction process.""




So if your buying a new build and it isn't built until months after I don't needs to actually pay for any insurnace as the builder is insured up until its built and I move in, But I do need to have something in place and give this to the solicitor before completion takes place, Then obviously activate it when I have a completion date nearer the time and I move in? or something like that? I think I'll just get in, pay for it and its done:undecided