Home Insurance when buying house in Scotland

PrettyFlower90

Apologies if this is stupid question but as a FTB I'm bit confused.

I was under impression that on conclusion of missives that we had to have buildings insurance in place, and that it had to be in place before date of entry i.e conpletion. I thought I had read this as well on this site and others, and our mortgage broker L&C stated it was a condition of our mortgage offer being issued (although they kept using phrase on exchange of contracts, which is England etc.)

We are concluding missives as we speak, and I asked our solicitor when we should have the insurance in place, but he said it doesn't need to be done until date of entry.

Our solicitor is awful tbh, worst decision we have made but it's done now, won't make that mistake again! So I don't completely trust what he says about this? Just because I have read and been told differently.. anyone else in Scotland know?

Thanks.. due to get keys this time next week so quite stressed atm! :j

googler

What does your Insurance Company have to say on the matter?

jennifernil

Any time we have moved, the insurance started on the day we got the keys.

PrettyFlower90

Not sure what you mean..?

We are in rented accommodation now so don't have buildings insurance. We have an overlap between getting new house and tenancy ending so we're getting a new policy for the new house we own.

jennifernil

your mortgage lender will insist on insurance, ask them when they need it to start.

The day you get the keys, after paying for the house is the time it becomes yours.

davidmcn

PrettyFlower90 wrote: »

I asked our solicitor when we should have the insurance in place, but he said it doesn't need to be done until date of entry.

Your solicitor is correct. Ignore everyone trying to tell you about the crazy system they have in England.

jennifernil wrote: »

your mortgage lender will insist on insurance, ask them when they need it to start.

They will want it from the date of entry. The property isn't their problem until then.

comeandgo

Your insurance starts when you own the property, when you get the keys.

jennifernil

Yes, exactly!

But if OP does not trust their solicitor, why would they trust us?

So confirmation from the lender would make it official.

jennifernil

OP, you should be getting quotes in good time so you can request the policy starts on the date you are getting entry.

davidmcn

jennifernil wrote: »

So confirmation from the lender would make it official.

Asking "the lender" probably means someone in a call centre in England (or further afield) who doesn't understand what happens in Scotland. The OP's mortgage offer and conditions should give the correct answer. Or you could look at the CML Handbook which is the standard set of solicitor instructions almost all the lenders use:

https://www.cml.org.uk/lenders-handbook/scotland/#C9304

6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance cover has been arranged for the property from no later than settlement. You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than settlement, and
• Must maintain such buildings insurance cover throughout the mortgage term.

jennifernil

Cannot say we have ever had a problem with the lender not knowing the Scottish system, but then we have never used a broker, always gone direct.