Buildings Insurance

sebadee

Hi,

Just looking at the exchange contract my solicitor has sent. They have a section about us needing buildings insurance, which I understand is important and required, no contention there from me. It however says that I must have insurance cover from the date of exchange of contracts.

"If you fail to arrange suitable buildings insurance cover from the date of exchange of contracts and the property is then damaged by an insured risk between exchange of contracts and the completion date, then you would be responsible for the cost of repair"

Is this right? Surely it should be from completion and when we can take occupancy. As it stands it sounds like I am paying insurance while someone else is living in the property? If they accidentally start a fire or reverse into the side of the house, it would come out of my insurance and increase my premium?

osaddict

I am looking into the very same thing so I'd like to know this too. I can only assume that any claims against the property would be based on who owns it, which at the point of exchange is still the current seller as far as I am aware.

I don't really get how it all works though, I need to get insurance now, before exchange has even been talked about, but I need to give a date I want insurance to start. I obviously don't know this yet! Also, am I supposed to pay for it now? If so, what happens of the house galls through.

Hopefully not a hijack op! I have the same questions as you and more!

sebadee

osddict, not at all mate. Pull up a chair and let's see what we can find out.

I am perplexed. Searching around it seems its the norm, but I don't even know the completion date yet.

blackshirtuk

As no one else has chipped in I will,

The reason you need to get insurance from exchange is because from exchange you are legally obliged to buy the house. If the place burned down before completion you would still have to buy it.

So your mortgage company wouldn't be happy if you didn't pay and they were left with a pile of rubble as collateral. Even if it was a cash purchase you wouldn't be happy handing over cash for a pile of rubble would you?

I understand that you run the risk of the current owner affecting your no claims but the risk of not having insurance is far higher.

You can quotes now and once you know the exchange date you can start it from then.

AnnieO1234

Exactly what blackshirtuk said. You're protecting yourself and your mortgage company from buying a pile of rubble or worse xxx

Annie1960

Yes, I agree with the above. It's your responsibility to insure from exchange.

osaddict

Okay that's fair enough. How do you actually go about getting insurance though? It seems that you need it in place before you know your exchange date, I certainly do. I need go supply some certificate before my solicitor can establish when we would exchange.

davidmcn

osaddict wrote: »

Okay that's fair enough. How do you actually go about getting insurance though? It seems that you need it in place before you know your exchange date, I certainly do.

No, you put it in place when you do know the date. Even at last minute, just do it online. Reread what you've been sent, ask your solicitor if you're still confused.

SplanK

If you already have building cover, speak to your existing provider.


I am with direct line and they will cover both houses at the same time. I asked about cost and he suggested that I could even be due a refund if the next property is cheaper to insure!


They will only insure it from exchange though and not before, give me a slight dilemma as I don't know when that date will be! I suppose it will be a last minute thing! and I will either just ask our sol to give me an hours heads up, or just do it once exchange is done!

richy999

SplanK wrote: »

If you already have building cover, speak to your existing provider.

I am with direct line and they will cover both houses at the same time. I asked about cost and he suggested that I could even be due a refund if the next property is cheaper to insure!

They will only insure it from exchange though and not before, give me a slight dilemma as I don't know when that date will be! I suppose it will be a last minute thing! and I will either just ask our sol to give me an hours heads up, or just do it once exchange is done!

Hi, I am also with Direct Line for buildings insurance and am due to exchange contracts within the next week.

Could you possibly expand on the discussion you had with them?

Would you end up with a new 12 month policy or pay an adjusted premium to take you to the end of your current policy.

Any mention of a cancellation fee?

Cheers,

Richard.