Buildings Insurance When Selling

HouseSeller

Hello,

First time post as in desperate need of clear advice.

As my handle suggests, I am selling my house. Now, I've not been the most sensible person during my life and I haven't always maintained my insurance and it has lapsed.

What I need to know is whether I have to have that insurance for the sale of the house to go through. I've never had to make a claim, I've never been refused insurance. Do I need to start a policy now to cover until contracts complete? If so, must I state on the policy that there is already a sale underway? And if so, what difference will this make?

I appreciate I'm an idiot so please let's not labour that point

I just need to know, with only a short time remaining until we complete, should I now sort out a buildings policy?

Speedy replies most appreciated!

HouseSeller

anselld

The purchaser normally insures from exchange which is a condition of the sale contract.

Between now and exchange it is your risk. Any sensible person would insure, but that has nothing to do with the sale.

You could insure now, then cancel for a refund after the sale.

HouseSeller

Anyone else have a different opinion?

inatdeepend

HouseSeller wrote: »

Anyone else have a different opinion?

Nope. Follow the advice above. It is correct.

davidmcn

If the question is do you need to insure, the answer is no, you have no more need to than you did before you decided to sell. It is just as sensible an idea as it previously was. If you do decide to insure, you don't need to declare a prospective sale to the insurer.

Peronihull

As a buyer where property has flooded but only discovered betwen exchange and completion. Vendors insurance is in adequate... causing issues which might delay completion.

My advice... insure!

BeansOnToast_2

On my sale,my insurance was due for renewal on the 1st of the month with a 14 day cancellation period. Completion was on the 13th. So as soon as I completed I cancelled and got a full refund.

G_M

anselld wrote: »

The purchaser normally insures from exchange which is a condition of the sale contract.

.

This is an assumption.

have you checked which version of the Standard Conditions of Sale are being used for your sale?

The older version requires the seller to insure between Exchange & Completion, the newer version, the buyer. Which are you using?

In any case, your sale contract requires you to hand over the property at Completion in the condition it was in at Exchange.

Given the value of the property, and the cost of insurance, why take risks?

Better to be over-insured than under.

Have you also read the terms of your mortgage agreement if you have one? That may also require you to insure....