At what point do you need buildings insurance?

Opal_Fruit_2

My husband works way and is only home on Fridays. We are supposed to complete on the 27th May. Our mortgage offer should be just round the corner so our mortgage advisor has said it would be a good time for a meeting to discuss buildings insurance. He is away at a meeting all day next Friday so it would need to be the following Friday which is only a week before completion. Is this enough time or should the buildings insurance be in place around the time we exchange? Thanks

kingstreet

Assuming your contract is based on the 5th Edition of the Standard Conditions Of Sale, the purchaser is responsible for the risk from exchange of contracts; that's why that is the point you effect buildings insurance cover.

That is also the point you first have an insurable interest in the property.

Barney72

Hi we exchanged over two weeks and haven't set up insurance, it's a new build and we were told that builders insure until date of completion, we still only be told sometime in June. The MA company said they will send us some insurance quotes soon.

amnblog

Always insure on Exchange as KS says.

HappyMJ

As already said get cover on the same day your conveyancer exchange contracts. If you are the vendor don't cancel the buildings policy until completion. The house will be covered twice but it's better to be more than covered than find out the vendor didn't have appropriate insurance and you're still forced to complete or face a large financial penalty.

Senior_Paper_Monitor

New builds are generally the exception on the 'from exchange' guidelines.

Meeting 'to discuss building insurance' seems a tad over the top - but I suspect this is a more general insurance (life etc) discussion that he is planning - and no reason to delay cover.

Incidentally, 3 weeks from completion and no exchange yet on a newbuild is a rare animal these days (3 months would be unusual) - are you sure you have got the dates/terms correct ?

kingstreet

The builder retains the risk until completion when it's a newbuild.

Opal_Fruit_2

Hi Senior, it's not a new build we are buying. I'm just wondering if 1 week is enough time between exchange and completion or if we should try to get in to discuss insurance earlier, which would mean a day off work. Thanks

Senior_Paper_Monitor

A week is fine - its just very unusual for a new build (developers have normal extracted an exchange by the time they print the glossy brochure !)

While I'm not in favour of the online comparison sites for building insurance (B&C), neither am I convinced formal meetings (and losing a day off) are a necessity (we, like many advisers, provide remote and face to face options - not touting for business just explaining - for mortgages, B&C and the full personal protection range and that seems to work for many people). I really would have thought a 20 minute phone call (lunchtime ?) and a couple of emailed quotes was sufficient for B&C (a full advice session on protection options is a different animal).

HappyMJ

Opal_Fruit wrote: »

Hi Senior, it's not a new build we are buying. I'm just wondering if 1 week is enough time between exchange and completion or if we should try to get in to discuss insurance earlier, which would mean a day off work. Thanks

Why would you need a day off work to get buildings insurance?

Just a quick online comparison and pick one. Shouldn't take much more than 10 minutes.

stator

Buy a policy online, just make sure you enter your mortgage number.