Buildings insurance on new build

MrsLF2014

Hello

I am due to exchange contracts on a new build property in a couple of weeks that isn't due to complete until the end of August, but as part of our mortgage offer we have to have buildings insurance from exchange which is fine. However, I was just wondering if anyone knew whether this could be done through a normal insurance provider, or how this works as the house is still being built so I would have thought what it would cost to rebuild now and then the change in build over the coming months would be significantly different for valuation purposes?

Thanks

ethank

Please check your contract of sale, most new builds are insured by the builder until completion, and the sales contract says that you don't have to.

ftb2015

We've recently bought a new build (already completed when we reserved). We were told to have insurance details ready around the exchange, meaning to have a policy in place commencing the date of completion. However our solicitor said it didn't matter on exchange and to just make sure we had it day before completion which we did(16 days after exchange) It should be builder who insures it, it's their property until money is exchanged.

stalkah

My mortgage offer with Nationwide says insurance needed from exchange unless it's a new build

MrsLF2014

Thanks everyone

Our mortgage offer is from Leeds Building Society, my husband rang them to check and they said we need to have it from exchange, our solicitor received our contracts yesterday so will check in their before organising anything. I too thought it would be the builders who have the insurance and maybe we just have to ask for a copy or something to show mortgage provider.

BartyBoy

Hello all

I am in a similar situation here too with a new build which will be completed in 3 months. I just wonder if anyone can recommend me an insurance company which will insure homes that are still under construction.

Many thanks in advance!

MrsLF2014

Hello

We didn't have to take out any insurance on exchange in the end as the property wasn't fully built. The buildings insurance is covered by the NHBC between exchange and completion. On exchange our solicitor activated this for us, we didn't need to do anything.

Hope this helps!

BartyBoy

Thank you for the info!

libf

From http://www.nhbc.co.uk/Warrantiesandcover/Homeowners/WhatdoesBuildmarkcover/:

Insurance before completion
The builder is responsible for completing the home to NHBC Standards. After exchange of contracts if, because of insolvency or fraud, your builder does not start or complete building your new home, we will reimburse your deposit or arrange for the home to be completed in line with the NHBC Standards.

We will pay up to a maximum of 10% of the purchase price or £100,000, whichever is less.

BartyBoy

libf wrote: »

Insurance before completion
The builder is responsible for completing the home to NHBC Standards. After exchange of contracts if, because of insolvency or fraud, your builder does not start or complete building your new home, we will reimburse your deposit or arrange for the home to be completed in line with the NHBC Standards.

Thanks for the information.

But my only concern is, what if the new build is damaged or destroyed by such as the weathers, human faults etc. from the time the contracts have been exchanged till the completion date, who is responsible for that? The builder? NHBC? Or the buyer?

Many thanks!

libf

BartyBoy wrote: »

Thanks for the information.

But my only concern is, what if the new build is damaged or destroyed by such as the weathers, human faults etc. from the time the contracts have been exchanged till the completion date, who is responsible for that? The builder? NHBC? Or the buyer?

Many thanks!

Um, see the post that you quoted?