first house buying help

rosskerr1

hi guys, after saving for what seemed like a lifetime i managed to save my 10% deposit up.
Have had my offer accepted on a house i like and processed my mortgage application, which was accepted. My written offer is apparently in the post as we speak and should be here tomorrow.. (dealing with halifax for mortgage who have been very helpful) noticed in my mortgage principle that i need home insurance before my solicitors can exhange.. but no insurers will touch me because i dont own the property yet.. how am i supposed to insure it then?

may be a simple answer and i may be completely stupid but would appreciate any help.

thanks alot!

Ross

the_insider

Ask your solicitors what the completion date will be (if you're at exchange stage this will have been agreed) and put that as the start date of the policy. Then give the documents to the solicitor. Presto.

chanz4

Above is correct and I used Halifax, you have to have cover from the completion date

rosskerr1

Yeah that's what I've tried but the insurers aren't willing to accept me because I don't own the house yet. Maybe just try it anyway! Thanks for the reply guys

ognum

chanz4 wrote: »

Above is correct and I used Halifax, you have to have cover from the completion date

You need cover from exchange not from completion!

dgtazzman

As Ognum has said, you will need insurence from exchange (this is likely also stipulated in your mortgage offer), unless it is a newbuild, in which case insurence mostly falls on the builders until completion. If online systems won't let you take out the insurence, pick up the phone. A human on the other end might be able to work around the restrictions of the computer system...

Also, once contracts are exchanged, legally the property is pretty much yours.

kingstreet

Risk from exchange depends on which version of the Standard Conditions Of Sale the solicitors are using, but for the thirty years I've been doing this, you start buildings insurance and life cover from exchange of contracts, when you accept liability for the property and still have to buy it if it is destroyed or you are dead.

I did a case on Tuesday with a commencement date of today as that's when exchange is taking place. Brokers have been doing this for years.

It's the aggregator site mentality which says you can't insure a property you don't yet own and can't apply for because the commencement date is in the future.

Use a broker, or contact the insurers directly as has been suggested and don't let them fob you off with this daft idea that you can't insure a property yo don't own. Exchange of contracts provides the necessary insurable interest.