Buildings Insurance pre exchange

chiff

Probably a really stupid question but here goes:

We're due to exchange on our house purchase as some point next week (exact date being determined at present). In order to exchange we need to provide a schedule of buildings insurance to our solicitors. I've queried with them how we can provide this schedule when we can't insure the property until the point of exchange to which they've replied "Just request the policy to start from today, there shouldn't be any problem".

I've spoken to the Insurers who've confirmed that they can't start a policy from today if we haven't exchanged yet and they will only start the policy from the date of exchange.

That makes sense to me so my thinking is that I need to provide the Insurers with the date of exchange (when confirmed) and pay for the policy so that it runs from date of exchange. Is this right? If so I can then request that they provide the schedule in the interim so that I can provide this to my solicitors.

Grateful for any help (my solicitors could do with some lessons in actually answering questions I think).

Scale_Rule

We exchanged yesterday, solicitor emailed me to confirm that the exchange had gone through and to get the buildings and life assurance on risk with immediate effect.

Nationwide (mortgage lender) asked for no proof of insurances although the agreement does say that it must be in place.

Compared some meerkats last night and took out the insurance online with immediate effect. Can you not just do that? Online starting now and email your solicitor the details.

Joesmith2015

I had our house insured about 2 weeks prior to exchange and completion as we had to prove to solicitor. Did it all online.

davidmcn

Scale_Rule wrote: »

Nationwide (mortgage lender) asked for no proof of insurances although the agreement does say that it must be in place.

Lenders won't care about insurance at exchange, only at completion. They generally leave it to the solicitors to check that it's in place.

chiff

Scale_Rule wrote: »

We exchanged yesterday, solicitor emailed me to confirm that the exchange had gone through and to get the buildings and life assurance on risk with immediate effect.

Nationwide (mortgage lender) asked for no proof of insurances although the agreement does say that it must be in place.

Compared some meerkats last night and took out the insurance online with immediate effect. Can you not just do that? Online starting now and email your solicitor the details.

Thanks, could do that but solicitor has said we need to provide a schedule before they will exchange - insurer has said can't insure until point of exchange.

chiff

Joesmith2015 wrote: »

I had our house insured about 2 weeks prior to exchange and completion as we had to prove to solicitor. Did it all online.

Yep, that's what solicitor suggested, then when I spoke to Insurers they said they couldn't insure it until exchange (which makes sense to me).

kingstreet

Same as...

https://forums.moneysavingexpert.com/discussion/comment/67212936#Comment_67212936

Post #9 onwards.

movilogo

Some lenders do make a point that building insurance must be in place from exchange date.

Just get exchange date from solicitor and make sure your insurance starts from that day.

kingstreet

The problem here is the insurer won't commence cover before exchange, but the solicitor needs to get a document which confirms compliance with CML rule 6.14.2. (Excess, all-risks, mortgagee interest noted etc)

That's why you need insurers who accept an application with a TBA commencement who can issue a letter of intent which confirms the cover is compliant and the lender's interest will be noted.

It's only the aggregators and their "low-hanging fruit" approach to doing business which is the issue here. They want to write immediate business and don't want the hassle involved in the property purchase sector which would push up costs.

chiff

Thanks all. Will take kingstreet's advice.

Not impressed with solicitor who has said "just tell them you've exchanged today"!!