Buildings Insurance on Property I'm Buying

tightasagnats

Hello, just had mortgage offer and says I need to arrange buildings insurance on property I'm in process of buying.

When should I do so? I'm having full buildings survey next week. It's approx 120 yrs old.

Would you do it before or after that? I'n not aware of any issues, but I'm sure to be after it!

Thank ewe.

DumbMuscle

Wait for the building survey - that will give you the rebuild value, which is the value you need to insure (and will be less than the house cost to buy - even if your home is destroyed, you still have the plot of land!). Plus, buildings insurance can be sorted quickly, and you don't want to arrange it and then have the sale fall through.

martinsurrey

tightasagnats wrote: »

Hello, just had mortgage offer and says I need to arrange buildings insurance on property I'm in process of buying.

When should I do so? I'm having full buildings survey next week. It's approx 120 yrs old.

Would you do it before or after that? I'n not aware of any issues, but I'm sure to be after it!

Thank ewe.

DumbMuscle wrote: »

Wait for the building survey - that will give you the rebuild value, which is the value you need to insure (and will be less than the house cost to buy - even if your home is destroyed, you still have the plot of land!). Plus, buildings insurance can be sorted quickly, and you don't want to arrange it and then have the sale fall through.

You cant have insurance "on risk" before exchange as you don't have an insurable interest in the property.

You line up a policy (get quotes) as you approach exchange, and then as soon as your solicitor confirms you have now exchanged, you confirm the policy with the company you have picked, with coverage to start immediately.

tightasagnats

Thank you both, very helpful. Rebuild cost did come back on the valuation report. I shall get some quotes.

G_M

Get quotes now.
Compare the cover being provided as well as the premiums.
Insure from Exchange.

AlexMac

My lender (the Nationwide) offered insurance from exchange if I took the 1st year's cover from them ... Which I did. Even though they weren't the cheapest around, it was so much more convenient and I switched after a year or two to a cheaper comparator.

Or if that's not on offer, how about your existing insurer?

G_M

AlexMac wrote: »

My lender (the Nationwide) offered insurance from exchange if I took the 1st year's cover from them ... Which I did. Even though they weren't the cheapest around, it was so much more convenient and I switched after a year or two to a cheaper comparator.

Or if that's not on offer, how about your existing insurer?

???

Nothing unique there. Most (all?) insurers will provide a year's cover starting from Exchange.

Shop around.

Of course, if you are not a FTB and already have cover on an existing property, some insurers will add the new one from Exchange to Completion at no extra cost. Check your existing policy.

tightasagnats

Thanks. I have a joint policy currently with flat upstairs as we have a share of Freehold, and they aren't cheapest but worked well for 2 flat policy. I'll have a look around.