Insuring buiding from exchange or completion?

Bollards

Hello,
I've sold my house subject to contract and am buying another house. I can't remember whether you have to insure the house you are moving into from exchange of contracts or completion? If you have to do it from exchange of contracts, then that would mean having 2 policies at the same time which could be expensive if there is a long time from exchange to completion.
Can someone advise.
Thanks in anticipation.
Helen

nik-nik_2

Just bought a property myself, I was told to get the building insurance in place for exchange, I understood the vendors policy was due to be cancelled on exchange.

Elliott_Woods

You should always insure on exchange of Contracts.

theGrinch

from exchange

Dan29

Yes it's from exchange. Surely you wouldn't need two policies as your buyers will be responsible for insuring your current house from the date of exchange too? It's definitely not worth not insuring your new house as if it burns down after exchange you are still legally bound to complete! (unless you forfeit your deposit).

bernardh_2

I seem to remember a case in Putney some years ago.A couple hadn`t insured their new flat as they hadn`t moved yet.There was a gas explosion .
Moral - insure when you are responsible, which is on exchange.
I don`t know if they got any compensation from anywhere,but I bet it took a long time if they did.

MarkyMarkD

Dan29 wrote:

Yes it's from exchange. Surely you wouldn't need two policies as your buyers will be responsible for insuring your current house from the date of exchange too? It's definitely not worth not insuring your new house as if it burns down after exchange you are still legally bound to complete! (unless you forfeit your deposit).

You are legally bound to complete - not "unless you forfeit your deposit" but absolutely.

If you failed to complete, because the house had burnt down and you'd failed to insure it, the seller would be able to sue you for the amount you agreed to pay. The problem for the seller is that not many people would be able to settle up for this amount!

So I think that the best advice is for BOTH parties to insure the house during the exchange - completion period. The cost of buildings insurance honestly isn't that great.

And the completion date is agreed ON exchange - delays can't happen after that or the buyer is in breach.

halloweenqueen_2

I was intending (when someone buys it!!) to keep my house insurance going until the day I move out and get one going for the new house as soon as I exchange contracts (belt and braces!!)