Home insurance inpace for exchanging?

[Deleted User]

Just been told that I have to have buildings and contents insurance in place for when I exchange?
Is that right? I find it hard to believe I have to insure something I don't legally own?

Newly_retired

Yes you need building insurance from day of exchange, but unless you are completing same day, you don't actually need contents, as your stuff is not there yet.
Could be worth checking with your existing insurer if it will do an add-on?

AndyT678

Deleted_User wrote: »

I find it hard to believe I have to insure something I don't legally own?

You may not own it but once you exchange you are committed to buying it even if it burns to the ground.

PasturesNew

Correct. From the moment you exchange you have to have buildings insurance in place.

I've just done this - phone up and get quotes, work out who you'll be using.... but you can't take out the insurance until you have exchanged... so it's the first phone call you make right after your solicitor phones you to say "you've just exchanged".

Contents insurance goes with your contents... so they need to be insured (or not) wherever they currently are. When I am about to move I'll be phoning my insurance company up to change my contents insurance address.

Newly_retired

Not sure why you say you can't take it out till you have exchanged?
We took ours out in anticipation of exchange; unfortunately exchange did not happen on that day, but we left it in place for the sake of a day or two.

[Deleted User]

Its done anyway, insurance covered on both until we sell and complete on new house. Just didn't seem right that we could insure something I do not own?

Kynthia

You have an insurable interest once you exchange as you will be impacted by any loss or damage, so it doesn't matter that you don't own it yet.

suziqqq

Newly_retired wrote: »

Not sure why you say you can't take it out till you have exchanged?
We took ours out in anticipation of exchange; unfortunately exchange did not happen on that day, but we left it in place for the sake of a day or two.

We have asked our current insurers and they won't do it until we have an exchange date

Yorkie1

Technically you cannot take it out until exchange, because until then you do not have an insurable interest in the property. (Edit: but you can get quotes and then activate on exchange).

Assuming the contract you and the seller have signed is covered by the current set of Law Society conditions, the risk passes to the buyer on exchange and therefore you must insure (buildings) from that point.

Contents insurance is entirely up to you at any point.